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Note 4 - Disposals
12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4.         Disposals

 

Disposal of Specialty Finance Leads Product

 

In December 2016, AutoWeb sold substantially all of the assets of its automotive specialty finance leads group to Internet Brands, Inc., a Delaware corporation (“Internet Brands”). In connection with this disposal of assets, the parties to the transaction entered into a Transitional License and Linking Agreement (“Transition Agreement”). Under the Transition Agreement, AutoWeb and its Car.com subsidiary provide Internet Brands certain transition services and arrangements, including (i) the grant of a limited, non-exclusive, non-transferable license to Internet Brands to use the Car.com logo and name solely for sales and marketing purposes in Internet Brand’s automotive specialty finance leads business; and (ii) certain redirect linking of consumer traffic from the Company’s specialty finance leads application forms to a landing page designated by Internet Brands.  The Transition Agreement provided that Internet Brands would pay AutoWeb $1.6 million in fees over the five-year term of the Transition Agreement, and the Company received $0.3 million during each of the years ended December 31, 2021 and 2020, respectively, related to the Transition Agreement. The Transition Agreement expired in January 2022.