Balance Sheet Components

9 Months Ended

Sep. 30, 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 September 30, 2020 and December 31, 2019 was $600,148 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 September 30, 2020 and December 31, 2019 was $9,983,633 and $3,142,580, respectively. The noncurrent portion of the subscription acquisition costs as of September 30, 2020 and December 31, 2019 was $7,629,479 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 12).

Platform Development – Platform development costs are summarized as follows:

	As of
	September 30, 2020			December 31, 2019
Platform development	$	14,812,843		$	10,678,692
Less accumulated amortization		(7,649,143	)		(4,785,973	)
Net platform development	$	7,163,700		$	5,892,719

A summary of platform development activity for the nine months ended September 30, 2020 and year ended December 31, 2019 is as follows:

	As of
	September 30, 2020			December 31, 2019
Platform development beginning of period	$	10,678,692		$	6,833,900
Payroll-based costs capitalized during the period		2,885,788			2,537,402
Total capitalized costs		13,564,480			9,371,302
Stock-based compensation		1,259,163			1,307,390
Dispositions		(10,800	)		-
Platform development end of period	$	14,812,843		$	10,678,692

Amortization expense for the three months ended September 30, 2020 and 2019 was $909,631 and $670,023, respectively. Amortization expense for the nine months ended September 30, 2020 and 2019 was $2,868,289 and $1,881,312, respectively.

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

	As of September 30, 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	$	(7,570,689	)	$	12,485,177	$	19,138,104	$	(4,090,359	)	$	15,047,745
Noncompete agreement		480,000		(432,000	)		48,000		480,000		(252,000	)		228,000
Trade name		3,328,000		(433,692	)		2,894,308		3,328,000		(224,745	)		3,103,255
Subscriber relationships		73,458,799		(14,475,740	)		58,983,059		73,458,799		(3,587,837	)		69,870,962
Advertiser relationships		2,240,000		(273,046	)		1,966,954		2,240,000		(94,635	)		2,145,365
Database		1,140,000		(436,183	)		703,817		1,140,000		(151,183	)		988,817
Subtotal amortizable intangible assets		100,702,665		(23,621,350	)		77,081,315		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	$	(23,621,350	)	$	77,101,315	$	99,804,903	$	(8,400,759	)	$	91,404,144

Amortization expense for the three months ended September 30, 2020 and 2019 was $5,093,076 and $1,199,353, respectively. Amortization expense for the nine months September 30, 2020 and 2019 was $15,220,591 and $2,869,153, respectively. No impairment charges have been recorded during the nine months September 30, 2020 and 2019.