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Selling Arrangement
12 Months Ended
Dec. 31, 2013
Selling Arrangement  
Selling Arrangement

2.              Selling Arrangement.  In February 2011, the Company paid News America Marketing In-Store, LLC (News America) $4,000,000 in exchange for a 10-year arrangement to sell signs with price into News America’s network of retailers as News America’s exclusive agent. The $4,000,000 is being amortized on a straight-line basis over the 10-year term of the arrangement. Amortization expense, which was $400,000 for each of the years ended December 31, 2013 and 2012, and is expected to be $400,000 per year over the next five years, is recorded within Cost of Services in the Company’s Statements of Operations. The net carrying amount of the selling arrangement is recorded within other assets on the Company’s balance sheet. A summary of the carrying amount of this selling arrangement is as follows as of December 31:

 

 

 

2013

 

2012

 

Gross cost

 

$

4,000,000

 

$

4,000,000

 

Accumulated amortization

 

(1,083,000

)

(683,000

)

Net carrying amount

 

$

2,917,000

 

$

3,317,000