Investments

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Investments

Investments.  The Company’s investments at December 31, 2016 and 2015 consist primarily of investments in SaleMove and GoMoto and are recorded at cost.  

The following table presents the Company’s investment activity for 2016 and 2015 (in thousands):

	Note			Note
	receivable-			receivable-
Description	long-term			current			Investments
Balance at December 31, 2014	$	—		$	150		$	3,880
Total gains, realized or unrealized		—			—			636
Purchases, (sales), issuances and (settlements), net		375			(150	)		(3,836	)
Balance at December 31, 2015		375			—			680
Purchases, (sales), issuances and (settlements), net		(375	)		750			—
Balance at December 31, 2016		—			750			680
Reserve for notes receivable		—			(750	)		—
Net balance at December 31, 2016	$	—		$	—		$	680

 In September 2013, the Company entered into a Convertible Note Purchase Agreement with SaleMove in which Autobytel invested $150,000 in SaleMove in the form of an interest bearing, convertible promissory note.  In November 2014, the Company invested an additional $400,000 in SaleMove in the form of an interest bearing, convertible promissory note.  Upon closing of a preferred stock financing by SaleMove in July 2015, these two notes were converted in accordance with their terms into an aggregate of 190,997 Series A Preferred Stock, which shares are classified as a long-term investment on the consolidated balance sheet as of December 31, 2016.

 In October 2013, the Company entered into a Reseller Agreement with SaleMove to become a reseller of SaleMove’s technology for enhancing communications with consumers.  SaleMove’s technology allows Dealers and Manufacturers to enhance the online shopping experience by interacting with consumers in real-time, including live video, audio and text-based chat or by phone. The Company and SaleMove equally share in revenues from automotive-related sales of the SaleMove products and services. In connection with this reseller arrangement, the Company advanced to  SaleMove $1.0 million to fund SaleMove’s 50% share of various product development, marketing and sales costs and expenses, with the advanced funds to be recovered by the Company from SaleMove’s share of sales revenue.  SaleMove advances are repaid to the Company from SaleMove’s share of net revenues from the Reseller Agreement.  As of December 31, 2016, the net advances due from SaleMove totaled $552,000.

In December 2014, the Company entered into a Series Seed Preferred Stock Purchase Agreement with GoMoto in which the Company paid $100,000 for 317,460 shares of Series Seed Preferred Stock, $0.001 par value per share.  The $100,000 investment in GoMoto was recorded at cost because the Company does not have significant influence over GoMoto.  In October 2015 and May 2016, the Company invested an additional $375,000 and $375,000 for each period in GoMoto in the form of convertible promissory notes (“GoMoto Notes”).  The GoMoto Notes accrued interest at an annual rate of 4.0% and are due and payable in full on or after October 28, 2017 upon demand or at GoMoto’s option ten days’ written notice unless converted prior to the maturity date.  As of December 31, 2016, the Company recorded a reserve of $0.8 million related to the GoMoto Notes and related interest receivable because the Company believes the amounts may not be recoverable.