10. PREPAID EXPENSES AND OTHER CURRENT ASSETS AND ACCRUED EXPENSES

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets at December 31, 2012 and 2011 are as follows (in thousands):

	2012		2011

Prepaid expenses	$	2,252	$	2,482
Other receivable		4,551		1,020
Prepaid direct costs		5,586		5,060
Prepaid software license		1,451		833
Prepaid software and hardware maintenance cost		1,226		937
Other		3,179		3,574
	$	18,245	$	13,906

Accrued Expenses

Accrued expenses at December 31, 2012 and 2011 are as follows (in thousands):

	2012		2011

Accrued wages and wage related taxes	$	9,778	$	9,047
Accrued sales commissions		6,190		4,357
Employee benefits		1,406		945
Accrued professional fees		1,998		1,768
Deferred revenue		8,735		8,218
Deferred rent		1,467		1,497
Other		2,519		3,167
	$	32,093	$	28,999

Excise and Sales Tax

Some of our solutions may be subject to telecommunications excise tax and sales taxes in states where we have not collected and remitted such taxes from our customers. During the year ended December 31, 2012, no payments were made, and during the year ended December 31, 2011 we paid $0.3 million related to the settlement of certain of these state excise and sales tax contingencies.

We have reserves for certain state excise and sales tax contingencies based on the likelihood of obligation. These contingencies are included in "Accrued taxes, other than income taxes" in our consolidated balance sheets. At December 31, 2012 and 2011, we had reserved $2.0 million and $1.7 million, respectively, for certain state excise and sales tax contingencies and interest. We believe we have appropriately accrued for these contingencies. In the event that actual results differ from these reserves, we may need to make adjustments, which could materially impact our financial condition and results of operations. In addition, states may disagree with our method of assessing and remitting such taxes or additional states may subject us to inquiries regarding such taxes.