Balance Sheet Components

Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following (in thousands):



	September 30,		December 31,
	2014		2013
Prepaid expenses and deposits for inventory	$	3,525	$	3,426
Other current assets⁽¹⁾	377		776
Prepaid expenses and other current assets	$	3,902	$	4,202

(1) Other current assets at December 31, 2013, included a rebate receivable of approximately $0.5 million.

Property and equipment

Property and equipment consist of the following (in thousands):



	September 30,			December 31,
	2014			2013
Distribution equipment (useful lives of lesser of 7 years or contract term)	$	5,509		$	5,475
Computer and office equipment (useful lives of 3 to 5 years)	409			377
Software, including internal-use software (useful lives of 3 years)	329			237
Leasehold improvements (useful lives of lesser of estimated life or lease term)	219			214
Furniture and fixtures (useful lives of 5 years)	151			150
Total property and equipment	6,617			6,453
Less: Accumulated depreciation and amortization	(4,817		)	(3,988		)
Property and equipment, net	$	1,800		$	2,465

Included in Software for the nine months ended September 30, 2014 is approximately $0.2 million of capitalized costs associated with internal-use software developed as part of implementing a new enterprise resource planning (ERP) system. Depreciation and amortization expense for property and equipment was $0.3 million for both the three months ended September 30, 2014 and September 30, 2013, and $0.9 million and $1.0 million for the nine months ended September 30, 2014 and September 30, 2013, respectively.

Accrued and other liabilities

Accrued and other liabilities consist of the following (in thousands):



	September 30, 2014		December 31, 2013
Accrued royalties	$	1,892	$	3,959
Accrued employee compensation and benefits	1,135		894
Accrued Geek Points⁽¹⁾	478		561
Other accrued liabilities	558		1,247
Accrued and other liabilities	$	4,063	$	6,661

(1) Accrued Geek Points represents the cost of anticipated future redemptions for awards earned as of the end of the respective periods.

Other long-term liabilities

Other long-term liabilities consist of the following (in thousands):



	September 30, 2014		December 31, 2013
Long-term contingent consideration⁽¹⁾	$	1,009	$	—
Long-term deferred rent	28		—
Other long-term liabilities	$	1,037	$	—

(1) Long-term contingent consideration represents the fair value of the potential earn-out payments related to the acquisition of Treehouse based on the terms of the asset purchase agreement.