Restructuring and Other Charges

9 Months Ended

Sep. 30, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

11. RESTRUCTURING AND OTHER CHARGES

During the three months ended September 30, 2013, the Company did not recognize any restructuring and other charges. During the nine months ended September 30, 2013, the Company recognized restructuring and other charges totaling approximately $386 thousand primarily related to noncash stock-based compensation costs in connection with the accelerated vesting of certain restricted stock units for a terminated employee (the “2013 Restructuring”).

The following table displays the activity of the 2013 Restructuring reserve account during the nine months ended September 30, 2013:

Restructuring and other charges	$	385,610
Noncash deductions		(393,195	)
Adjustment to prior estimate		7,585
Ending balance	$	—

During the year ended December 31, 2012, the Company implemented a targeted reduction in force. Additionally, in assessing the ongoing needs of the organization, the Company elected to discontinue using certain software as a service, consulting and data providers, and elected to write-off certain previously capitalized software development projects. The actions were taken after a review of the Company’s cost structure with the goal of better aligning the cost structure with the Company’s revenue base. These restructuring efforts resulted in restructuring and other charges of approximately $3.4 million during the year ended December 31, 2012. Additionally, as a result of the Company’s acquisition of The Deal, LLC (“the Deal”) in September 2012, the Company discontinued the use of The Deal’s office space and implemented a reduction in force to eliminate redundant positions, resulting in restructuring and other charges of approximately $3.5 million during the year ended December 31, 2012. Collectively, these activities are referred to as the “2012 Restructuring”.

The following table displays the activity of the 2012 Restructuring reserve account during the nine months ended September 30, 2013 and 2012. The remaining balance as of September 30, 2013 relates to the lease for The Deal’s office space which expires in August 2021.

	For the Nine Months Ended September 30,
	2013			2012
Beginning balance	$	2,680,006		$	—
Restructuring and other charges		—			6,328,464
Noncash deductions		—			(1,396,695	)
Adjustments to prior estimate		16,849			—
Payments		(1,414,179	)		(1,742,961	)
Ending balance	$	1,282,676		$	3,188,808

In December 2011, the Company announced a management transition under which the Company’s chief executive officer would step down from his position by March 31, 2012. Additionally, in December 2011, a senior vice president separated from the Company. As a result of these activities, the Company incurred restructuring and other charges of approximately $1.8 million during the year ended December 31, 2011 (the “2011 Restructuring”).

The following table displays the activity of the 2011 Restructuring reserve account during the nine months ended September 30, 2013 and 2012:

	For the Nine Months Ended September 30,
	2013			2012
Beginning balance	$	1,541		$	1,178,647
Payments		(1,541	)		(1,175,565	)
Ending balance	$	—		$	3,082

In March 2009, the Company announced and implemented a reorganization plan, including an approximate 8% reduction in the Company’s workforce, to align the Company’s resources with its strategic business objectives. Additionally, effective March 21, 2009, the Company’s then Chief Executive Officer tendered his resignation, effective May 8, 2009, the Company’s then Chief Financial Officer tendered his resignation, and in December 2009, the Company sold its Promotions.com subsidiary and entered into negotiations to sublease certain office space maintained by Promotions.com. As a result of these activities, the Company incurred restructuring and other charges of approximately $3.5 million during the year ended December 31, 2009 (the “2009 Restructuring”).

The following table displays the activity of the 2009 Restructuring reserve account during the nine months ended September 30, 2013 and 2012. The remaining balance as of September 30, 2013 relates to the sublease of the Promotions.com office space which expires in February 2014.

	For the Nine Months Ended September 30,
	2013			2012
Beginning balance	$	220,297		$	674,365
Reduction to prior estimate		—			(288,667	)
Payments		(93,018	)		(95,641	)
Ending balance	$	127,279		$	290,057