Restructuring and Other Charges

12 Months Ended

Dec. 31, 2013

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

(14) Restructuring and Other Charges

During the year ended December 31, 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 year ended December 31, 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 accessing 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 from continuing operations of approximately $3.4 million during the year ended December 31, 2012. Additionally, as a result of the Company’s acquisition of 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 from continuing operations 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 from the initial charges during the first quarter of 2012 through December 31, 2013. The remaining balance as of December 31, 2013 relates to the lease for The Deal’s office space which expires in August 2021.

		Workforce Reduction		Asset Write-Off		Termination of Vendor Services		Lease Termination	$	Total
Restructuring charge	$	3,307,330	$	954,302	$	531,828	$	2,085,000		6,878,460
Noncash charges		(222,215)		(954,302)		(220,178)		-		(1,396,695)
Payments		(2,462,425)		-		(148,816)		(190,518)		(2,801,759)
Balance December 31, 2012		622,690		-		162,834		1,894,482		2,680,006
Adjustments to prior estimates		(7,586)		-		5,446		27,130		24,990
Payments		(615,104)		-		(168,280)		(640,200)		(1,423,584)
Balance December 31, 2013	$	-	$	-	$	-	$	$ 1,281,412	$	1,281,412

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 from continuing operations 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 from the initial charges during the fourth quarter 2011 through December 31, 2013:

Restructuring and other charges	$	1,825,799
Noncash charges		(647,152	)
Balance December 31, 2011		1,178,647
Payments		(1,177,106	)
Balance December 31, 2012		1,541
Payments		(1,541	)
Balance December 31, 2013	$	—

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 from continuing operations of approximately $3.5 million during the year ended December 31, 2009 (the “2009 Restructuring”). During the year ended December 31, 2012, the Company recorded a reduction to previously estimated charges resulting in a net credit of approximately $289 thousand.

The following table displays the activity of the 2009 Restructuring reserve account from the initial charges during the first quarter 2009 through December 31, 2013. The remaining balance as of December 31, 2013 relates to the Promotions.com office space which expires in February 2014.

Restructuring and other charges	$	3,460,914
Noncash charges		(451,695	)
Payments		(1,779,163	)
Balance December 31, 2009		1,230,056
Payments		(385,295	)
Balance December 31, 2010		844,761
Payments		(170,396	)
Balance December 31, 2011		674,365
Payments		(165,401	)
Reduction to prior estimate		(288,667	)
Balance December 31, 2012		220,297
Payments		(124,023	)
Balance December 31, 2013	$	96,274