Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Reconciliation of the Accounts Receivable Reserve

Accounts Receivable

Accounts receivable are stated net of allowances for doubtful accounts and estimated sales returns. The allowance for doubtful accounts and estimated sales returns totaled $0.2 million and $0.4 million at December 31, 2015 and 2014, respectively. The allowance for doubtful accounts is based on a review of the outstanding balances and historical collection experience. The reserve for sales returns is based on historical rates of returns as well as other factors that in the Company’s judgment could reasonably be expected to cause sales returns to differ from historical experience. A reconciliation of the accounts receivable reserve is shown in the table below for the periods indicated:

	December 31,
(in thousands)	2015			2014
Accounts receivable reserve, beginning of period	$	435		$	735
Charged to costs and expenses		38			316
Charged to other accounts ⁽¹⁾		(41	)		(538	)
Write-offs		(201	)		(78	)
Accounts receivable reserve, end of period	$	231		$	435

⁽¹⁾

Changes in sales return reserve.

Schedule of Calculation of Basic and Diluted Net Loss Per Share

Net Loss per Common Share

The following table presents the calculation of basic and diluted net loss per share:

	Year Ended December 31,
(in thousands, except per share data)	2015			2014
Numerator:
Net loss	$	(1,325	)	$	(9,955	)
Denominator:
Basic:
Weighted-average common shares used in computing basic net loss per share		45,550			45,636
Diluted:
Add weighted average effect of dilutive securities:
Stock options, restricted stock awards and warrant		—			—
Weighted-average common shares used in computing diluted net loss per share		45,550			45,636
Net loss per common share:
Basic	$	(0.03	)	$	(0.22	)
Diluted	$	(0.03	)	$	(0.22	)

Estimated Lives

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed over the assets’ estimated useful lives using the straight-line method. Estimated lives are as follows:

Asset Class		Estimated Useful Life
Computer and other equipment		3 – 5 years
Leasehold improvements		Lesser of useful life or lease term
Furniture and fixtures		8 years

Depreciation and Amortization

Depreciation and amortization for the years ended December 31, 2015 and 2014 consisted of the following:

	Year Ended December 31,
(in thousands)	2015		2014
Acquired publishing rights	$	1,303	$	1,943
Acquired curriculum and technology		2,478		3,510
Pre-publication costs		7,081		6,394
Internally developed software related to product		6,508		6,423
Total amortization included in cost of revenues		17,370		18,270
Trade names and trademarks		419		452
Other intangible assets		849		1,045
Property, equipment and software		2,600		2,712
Total depreciation and amortization included in operating expense		3,868		4,209
Total depreciation and amortization	$	21,238	$	22,479