Disposition of Buyer Platform

On August 7, 2017, the Company announced the sale of its buyer platform to Taptica for total consideration of $50,000, subject to adjustment for working capital. In connection with the transaction, we entered into a transition services agreement, as amended, pursuant to which we agreed to provide certain services to Taptica through May 31, 2018.

The proceeds from the sale included $1,000 for the right to use the name, “Tremor Video, DSP,” for a period of 18 months following the closing. The Company is currently recognizing the $1,000 in other income within the Condensed Consolidated Statements of Operations ratably over the 18 months period.

The Company transferred full title and interest in the name "Tremor Video" to Taptica during the second quarter of 2018, in consideration for Taptica reaching certain payment milestones under a commercial agreement between the parties. As a result of the title transfer, the remaining balance of $566 related to the transfer of the trademark is recorded in other income.

In connection with the closing of the transaction, the Company recognized a gain on sale of discontinued operations, net of tax, of $14,626 in the third quarter of 2017. Included in the measurement of the gain were estimates for the income taxes due on the gain and the additional cash consideration expected from the buyer related to a closing date net working capital sales price adjustment. The Company recognized losses on sale of discontinued operations for the three and six months ended June 30, 2018 as a result of net working capital adjustments in the amounts of $(161) and $(136), respectively. The losses recorded for the three and six months ended June 30, 2018 partially offset the gain on sale of discontinued operations originally recognized in the third quarter of 2017.

The following table presents the major financial lines constituting the results of operations for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Condensed Consolidated Statements of Operations:



	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Revenue	$	—		$	38,933	—			74,194
Cost of revenue	—			23,524		—			44,783
Gross profit	—			15,409		—			29,411

Operating expenses:
Technology and development	—			3,081		—			6,317
Sales and marketing	—			6,208		—			12,735
General administrative	—			231		—			441
Depreciation and Amortization	—			1,367		—			2,695
Total operating expenses	—			10,887		—			22,188
Operating income of discontinued operations before income taxes	—			4,522		—			7,223
Provision for income tax on discontinued operations	—			6		—			25
Income from discontinued operations, net of income taxes	$	—		$	4,516	—			7,198

Loss on sale of discontinued operations before income taxes	(161		)	—		(136		)	—
Provision for income taxes on sale of discontinued operations	—			—		—			—
Loss on sale of discontinued operations, net of income taxes	(161		)	—		(136		)	—

Total income (loss) from discontinued operations, net of income taxes	$	(161	)	$	4,516	$	(136	)	$	7,198

The following table presents supplemental cash flow information of the discontinued operations:



	Six Months Ended June 30,
	2018		2017
Non-cash adjustments to net cash from operating activities:
Depreciation and amortization	$	—	$	2,695
Stock based compensation expense	$	—	$	569
Cash used in investing activities:
Capital expenditures	$	—	$	462