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 June 15, 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 recognized 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 was recorded in other income during the second quarter of 2018.

In connection with the closing of the transaction, the Company recognized a gain on sale of discontinued operations, net of tax, of $14,924 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 nine months ended September 30, 2018 as a result of net working capital adjustments in the amount of $(136). The loss recorded for the nine months ended September 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 September 30,				Nine Months Ended September 30,
	2018		2017		2018			2017
Revenue	$	—	$	14,143	—			88,337
Cost of revenue	—		8,553		—			53,336
Gross profit	—		5,590		—			35,001

Operating expenses:
Technology and development	—		1,215		—			7,532
Sales and marketing	—		3,073		—			15,808
General administrative	—		97		—			538
Depreciation and Amortization	—		527		—			3,222
Total operating expenses	—		4,912		—			27,100
Operating income of discontinued operations before income taxes	—		678		—			7,901
Provision for income tax on discontinued operations	—		35		—			54
Income from discontinued operations, net of income taxes	$	—	$	643	—			7,847

Loss on sale of discontinued operations before income taxes	—		15,222		(136		)	15,222
Provision for income taxes on sale of discontinued operations	—		298		—			298
Loss on sale of discontinued operations, net of income taxes	—		14,924		(136		)	14,924

Total income (loss) from discontinued operations, net of income taxes	$	—	$	15,567	$	(136	)	$	22,771

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



	Nine Months Ended September 30,
	2018		2017
Non-cash adjustments to net cash from operating activities:
Depreciation and amortization	$	—	$	3,222
Stock based compensation expense	$	—	$	671
Goodwill write-off	—		4,609
Cash used in investing activities:
Capital expenditures	$	—	$	413