Disposition of Buyer Platform

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposition of Buyer PlatformOn 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. The proceeds include $1,000 for the right to use the name, “Tremor Video, DSP,” for a period of 18 months following the closing. The Company recognized $1,000 in other income within the Consolidated Statements of Operations ratably over the 18-month period following the sale. The sale of the buyer platform represented a strategic change to shift the focus of the Company’s business exclusively on offering its sell-side video management platform. Accordingly, the results of the buyer platform have been classified as a discontinued operation in the consolidated financial statements for all periods presented. Following the disposition, the Company entered into an arms-length commercial agreement with Taptica pursuant to which they may purchase video inventory on the platform. In connection with the transaction, we entered into a transition services agreement, pursuant to which we provided certain services to Taptica through June 15, 2018.

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 the sale of discontinued operations for the year-ended December 31, 2018 as a result of net working capital adjustments in the amount of $136.

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


	Years Ended
	2018		2017

Revenue	$	—	$	88,255
Cost of revenue	—		53,486
Gross profit	—		34,769

Operating expenses:
Technology and development	—		7,594
Sales and marketing	—		16,149
General administrative	—		547
Depreciation and amortization	—		3,174
Impairment charges	—		—
Total operating expenses	—		27,464

Income from discontinued operations	—		7,305

Interest and other (expense), net	—		—
Income from discontinued operations before income taxes	—		7,305
Provision (benefit) for income taxes	—		4
Income from discontinued operations, net of income taxes	—		7,301

(Loss) gain on sale of discontinued operation before income taxes	(136)		14,958
Provision for income taxes	—		332
Gain on sale of discontinued operation, net of income taxes	(136)		14,626
Income from discontinued operations, net of income taxes	—		7,301
Income (loss) from discontinued operations, net of income taxes	$	(136)	$	21,927

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


	Years Ended
	2018		2017

Non-cash adjustments to net cash from operating activities:
Depreciation and amortization	$	—	$	3,174
Stock based compensation expense	—		673

Cash used in investing activities:
Capital expenditures	$	—	$	475