Balance Sheet Components

3 Months Ended

Mar. 31, 2020

Balance Sheet Components

Balance Sheet Components

3. Balance Sheet Components

The components of certain balance sheet amounts are as follows:

Accounts Receivable – Accounts receivable are presented net of allowance for doubtful accounts. The allowance for doubtful accounts as of March 31, 2020 and December 31, 2019 was $518,111 and $304,129, respectively.

Subscription Acquisition Costs – Subscription acquisition costs include the incremental costs of obtaining a contract with a customer, paid to external parties, if it expects to recover those costs. The current portion of the subscription acquisition costs as of March 31, 2020 and December 31, 2019 was $6,269,758 and $3,142,580, respectively. The noncurrent portion of the subscription acquisition costs as of March 31, 2020 and December 31, 2019 was $3,394,768 and $3,417,478, respectively.

Certain contract amendments resulted in a modification to the subscription acquisition costs that will be recognized on a prospective basis in the same proportion as the revenue that has not yet been recognized (further details are provided in Note 11).

Platform Development – Platform development costs are summarized as follows:

	As of
	March 31, 2020			December 31, 2019
Platform development	$	11,902,670		$	10,678,692
Less accumulated amortization		(5,706,797	)		(4,785,973	)
Net platform development	$	6,195,873		$	5,892,719

A summary of platform development activity for the three months ended March 31, 2020 and year ended December 31, 2019 is as follows:

	As of
	March 31, 2020		December 31, 2019
Platform development beginning of period	$	10,678,692	$	6,833,900
Payroll-based costs capitalized during the period		853,926		2,537,402
Total capitalized costs		11,532,618		9,371,302
Stock-based compensation		370,052		1,307,390
Platform development end of period	$	11,902,670	$	10,678,692

Amortization expense for the three months ended March 31, 2020 and 2019, was $920,824 and $587,470, respectively.

Intangible Assets – Intangible assets subject to amortization consisted of the following:

	As of March 31, 2020							As of December 31, 2019
	Carrying Amount		Accumulated Amortization			Net Carrying Amount		Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	20,055,866	$	(5,209,664	)	$	14,846,202	$	19,138,104	$	(4,090,359	)	$	15,047,745
Noncompete agreement		480,000		(312,000	)		168,000		480,000		(252,000	)		228,000
Trade name		3,328,000		(294,395	)		3,033,605		3,328,000		(224,745	)		3,103,255
Subscriber relationships		73,458,799		(7,217,138	)		66,241,661		73,458,799		(3,587,837	)		69,870,962
Advertiser relationships		2,240,000		(154,103	)		2,085,897		2,240,000		(94,635	)		2,145,365
Database		1,140,000		(246,183	)		893,817		1,140,000		(151,183	)		988,817
Subtotal amortizable intangible assets		100,702,665		(13,433,483	)		87,269,182		99,784,903		(8,400,759	)		91,384,144
Website domain name		20,000		-			20,000		20,000		-			20,000
Total intangible assets	$	100,722,665	$	(13,433,483	)	$	87,289,182	$	99,804,903	$	(8,400,759	)	$	91,404,144

Amortization expense for the three months ended March 31, 2020 and 2019 was $5,032,724 and $834,900, respectively. No impairment charges have been recorded during the three months March 31, 2020 and 2019.