3.	*Segment Information*

The Company is organized into separately managed segments as follows: the Reis Services segment and the Other segment. The following tables present condensed balance sheet and operating data for these segments:


(amounts in thousands)
Condensed Balance Sheet Data June 30, 2017	Reis Services		Other (A)			Consolidated

Assets
Current assets:
Cash and cash equivalents	$	17,336	$	1,547		$	18,883
Accounts receivable, net		9,309		—			9,309
Prepaid and other assets		719		21			740

Total current assets		27,364		1,568			28,932
Furniture, fixtures and equipment, net		5,375		—			5,375
Intangible assets, net		19,082		—			19,082
Deferred tax asset, net		285		17,680			17,965
Goodwill		57,203		(2,378	)		54,825
Other assets		256		—			256

Total assets	$	109,565	$	16,870		$	126,435

Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—		$	—
Accrued expenses and other liabilities		3,069		245			3,314
Deferred revenue		24,183		—			24,183

Total current liabilities		27,252		245			27,497
Other long-term liabilities		2,614		—			2,614
Deferred tax liability, net		34,118		(34,118	)		—

Total liabilities		63,984		(33,873	)		30,111
Total stockholders’ equity		45,581		50,743			96,324

Total liabilities and stockholders’ equity	$	109,565	$	16,870		$	126,435


Condensed Balance Sheet Data December 31, 2016	Reis Services		Other (A)			Consolidated

Assets
Current assets:
Cash and cash equivalents	$	19,903	$	1,588		$	21,491
Accounts receivable, net		10,744		—			10,744
Prepaid and other assets		622		170			792

Total current assets		31,269		1,758			33,027
Furniture, fixtures and equipment, net		5,260		—			5,260
Intangible assets, net		17,922		—			17,922
Deferred tax asset, net		285		16,530			16,815
Goodwill		57,203		(2,378	)		54,825
Other assets		295		—			295

Total assets	$	112,234	$	15,910		$	128,144

Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt	$	—	$	—		$	—
Accrued expenses and other liabilities		3,724		307			4,031
Deferred revenue		25,031		—			25,031

Total current liabilities		28,755		307			29,062
Other long-term liabilities		1,902		—			1,902
Deferred tax liability, net		32,909		(32,909	)		—

Total liabilities		63,566		(32,602	)		30,964
Total stockholders’ equity		48,668		48,512			97,180

Total liabilities and stockholders’ equity	$	112,234	$	15,910		$	128,144

(A)	Includes cash, other assets and liabilities not specifically attributable to or allocable to the Reis Services segment.

(amounts in thousands)


Condensed Operating Data for the Three Months Ended June 30, 2017	Reis Services			Other (A)			Consolidated

Revenue:
Subscription revenue	$	11,429		$	—		$	11,429
Other revenue		280			—			280

Total revenue		11,709			—			11,709
Cost of sales		3,216			—			3,216

Gross profit		8,493			—			8,493
Operating expenses:
Sales and marketing		3,105			—			3,105
Product development		1,106			—			1,106
General and administrative expenses		2,728			985			3,713

Total operating expenses		6,939			985			7,924
Other income (expenses):
Interest and other income		—			1			1
Interest expense		(32	)		—			(32	)

Total other income (expenses)		(32	)		1			(31	)

Income (loss) before income taxes	$	1,522		$	(984)		$	538


Condensed Operating Data for the Three Months Ended June 30, 2016	Reis Services			Other (A)			Consolidated

Revenue:
Subscription revenue	$	11,369		$	—		$	11,369
Other revenue		245			—			245

Total revenue		11,614			—			11,614
Cost of sales		2,494			—			2,494

Gross profit		9,120			—			9,120
Operating expenses:
Sales and marketing		3,025			—			3,025
Product development		1,016			—			1,016
General and administrative expenses		2,535			1,001			3,536

Total operating expenses		6,576			1,001			7,577
Other income (expenses):
Interest and other income		6			—			6
Interest expense		(28	)		—			(28	)

Total other income (expenses)		(22	)		—			(22	)

Income (loss) before income taxes	$	2,522		$	(1,001	)	$	1,521

(A)	Includes interest and other income, depreciation expense and general and administrative expenses that have not been allocated to the Reis Services segment.

(amounts in thousands)


Condensed Operating Data for the Six Months Ended June 30, 2017	Reis Services			Other (A)			Consolidated

Revenue:
Subscription revenue	$	23,008		$	—		$	23,008
Other revenue		827			—			827

Total revenue		23,835			—			23,835
Cost of sales		6,582			—			6,582

Gross profit		17,253			—			17,253
Operating expenses:
Sales and marketing		6,433			—			6,433
Product development		2,273			—			2,273
General and administrative expenses		5,612			2,221			7,833

Total operating expenses		14,318			2,221			16,539
Other income (expenses):
Interest and other income		1			1			2
Interest expense		(65	)		—			(65	)

Total other income (expenses)		(64	)		1			(63	)

Income (loss) before income taxes	$	2,871		$	(2,220)		$	651


Condensed Operating Data for the Six Months Ended June 30, 2016	Reis Services			Other (A)			Consolidated

Revenue:
Subscription revenue	$	22,797		$	—		$	22,797
Other revenue		1,641			—			1,641

Total revenue		24,438			—			24,438
Cost of sales		4,956			—			4,956

Gross profit		19,482			—			19,482
Operating expenses:
Sales and marketing		5,693			—			5,693
Product development		2,021			—			2,021
General and administrative expenses		5,331			2,290			7,621

Total operating expenses		13,045			2,290			15,335
Other income (expenses):
Interest and other income		14			—			14
Interest expense		(49	)		—			(49	)

Total other income (expenses)		(35	)		—			(35	)

Income (loss) before income taxes	$	6,402		$	(2,290	)	$	4,112

(A)	Includes interest and other income, depreciation expense and general and administrative expenses that have not been allocated to the Reis Services segment.

Reis Services

See Note 1 for a description of Reis Services’s business and products at June 30, 2017.

The Company’s largest individual customer accounted for 3.3% and 8.1% of total revenue for the six months ended June 30, 2017 and 2016, respectively.

The following table presents the accounts receivable balances at June 30, 2017 and December 31, 2016:


	June 30, 2017		December 31, 2016

Accounts receivable	$	9,568,000	$	10,862,000
Allowance for doubtful accounts		(259,000)		(118,000)

Accounts receivable, net	$	9,309,000	$	10,744,000

Seventeen subscribers accounted for an aggregate of approximately 55.7% of accounts receivable at June 30, 2017, with the largest representing 12.1%. Through July 31, 2017, the Company received payments of approximately $4,711,000 or 49.2%, against the June 30, 2017 accounts receivable balance.

At June 30, 2017, the largest individual subscriber accounted for 4.7% of deferred revenue.