Discontinued operations

As a result of the Spin-off on

March 26, 2018,

the financial results of Red Violet are reflected in the Company's consolidated financial statements as discontinued operations and, therefore, are presented as loss from discontinued operations on the consolidated statements of operations, and cash activity from discontinued operations on the consolidated statements of cash flows. Further, the Company's additional paid-in capital was decreased by the net assets of Red Violet, as reflected in the consolidated statements of changes in shareholders' equity.

For the

nine

months ended

September 30, 2018

, the financial results of operations of Red Violet were as follows:

	Nine Months Ended September 30, 2018
Revenue	$	3,325
Cost of revenue (exclusive of depreciation and amortization)		2,017
Sales and marketing expenses		1,089
General and administrative expenses		1,852
Depreciation and amortization		451
Loss from operations of discontinued operations, net of $0 income taxes		(2,084	)
Loss on disposal of discontinued operations, net of $0 income taxes		(19,040	)
Net loss from discontinued operations	$	(21,124	)

For the

nine

months ended

September 30, 2018

, included in the net loss from discontinued operations is a loss on disposal of discontinued operations of

$19,040,

of which an aggregate of

$16,030

represented non-cash charges. The loss on disposal of discontinued operations consisted of the following:

	Nine Months Ended September 30, 2018
Share-based compensation expense (1)	$	15,548
Write-off of unamortized debt costs (2)		284
Write-off of certain prepaid expenses		198
Spin-off related professional fees		2,012
Spin-off related employee compensation		998
Loss on disposal of discontinued operations	$	19,040

(

)

As discussed and defined in Note

10,

Share-based compensation

, share-based compensation expense represents non-cash expense incurred in connection with the Acceleration of certain previously outstanding but unvested stock options, RSUs and restricted stock and additional Spin-off Grants, in connection with the Spin-off.

(

)

As discussed in Note

Long-term debt, net,

in connection with the Spin-off, the Company repaid the Promissory Notes to certain investors, which resulted in a write-off of unamortized debt costs of $

284

In addition, during the

first

quarter of

2018

, in connection with the Spin-off of Red Violet, an aggregate of

$7,708

was recognized in costs and expenses from continuing operations as spin-off transaction costs, and included non-cash share-based compensation expense of

$5,409

as a result of

2,041,000

shares of Transaction Grants (as defined in Note

10,

Share-based compensation

), and employee cash compensation of

$2,299.