Balance Sheet Components

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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, 2021 and December 31, 2020 was $675,806 and $892,352, 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, 2021 and December 31, 2020 was $31,257,268 and $28,146,895, respectively, on the condensed consolidated balance sheets. The noncurrent portion of the subscription acquisition costs as of September 30, 2021 and December 31, 2020 was $18,682,545 and $13,358,585, respectively, on the condensed consolidated balance sheets.

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 under the heading Contract Balances in Note 12).

Property and Equipment – Property and equipment are summarized as follows:

	As of
	September 30, 2021			December 31, 2020
Office equipment and computers	$	1,267,898		$	1,341,292
Furniture and fixtures		1,005			19,997
Leasehold improvements		-			345,516
		1,268,903			1,706,805
Less accumulated depreciation and amortization		(600,240	)		(577,367	)
Net property and equipment	$	668,663		$	1,129,438

Depreciation and amortization expense for the three months ended September 30, 2021 and 2020 was $114,165 and $102,067, respectively. Depreciation and amortization expense for the nine months ended September 30, 2021 and 2020 was $333,891 and $536,729, respectively. Depreciation and amortization expense is included in selling and marketing expenses and general and administrative expenses, as appropriate, on the condensed consolidated statements of operations.

Platform Development – Platform development costs are summarized as follows:

	As of
	September 30, 2021			December 31, 2020
Platform development	$	19,497,520		$	16,027,428
Less accumulated amortization		(11,485,813	)		(8,671,820	)
Net platform development	$	8,011,707		$	7,355,608

A summary of platform development activity for the nine months ended September 30, 2021 and year ended December 31, 2020 is as follows:

	As of
	September 30, 2021			December 31, 2020
Platform development beginning of period	$	16,027,428		$	10,678,692
Payroll-based costs capitalized during the period		3,016,924			3,750,541
Total capitalized costs		19,044,352			14,429,233
Stock-based compensation		1,347,624			1,608,995
Dispositions		(894,456	)		(10,800	)
Platform development end of period	$	19,497,520		$	16,027,428

Amortization expense for the three months ended September 30, 2021 and 2020, was $1,143,673 and $909,631, respectively. Amortization expense for the nine months ended September 30, 2021 and 2020, was $3,272,890 and $2,868,289, respectively.

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

	As of September 30, 2021							As of December 31, 2020
	Carrying Amount		Accumulated Amortization			Net Carrying Amount		Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	19,070,857	$	(11,576,450	)	$	7,494,407	$	19,070,857	$	(8,283,740	)	$	10,787,117
Noncompete agreement		480,000		(480,000	)		-		480,000		(480,000	)		-
Trade name		3,328,000		(712,292	)		2,615,708		3,328,000		(503,342	)		2,824,658
Subscriber relationships		73,458,799		(28,992,944	)		44,465,855		73,458,799		(18,105,041	)		55,353,758
Advertiser relationships		2,240,000		(510,922	)		1,729,078		2,240,000		(332,515	)		1,907,485
Database		2,396,887		(904,030	)		1,492,857		1,140,000		(531,183	)		608,817
Subtotal amortizable intangible assets		100,974,543		(43,176,638	)		57,797,905		99,717,656		(28,235,821	)		71,481,835
Website domain name		20,000		-			20,000		20,000		-			20,000
Total intangible assets	$	100,994,543	$	(43,176,638	)	$	57,817,905	$	99,737,656	$	(28,235,821	)	$	71,501,835

Amortization expense for the three months ended September 30, 2021 and 2020 was $5,038,837 and $5,093,076, respectively. Amortization expense for the nine months ended September 30, 2021 and 2020 was $14,940,817 and $15,220,591, respectively. No impairment charges have been recorded during the nine months September 30, 2021 and 2020.

Other Long-term Liabilities – Other long-term liabilities consisted of the following:

	As of
	September 30, 2021		December 31, 2020
Lease termination payments	$	7,269,469	$	541,381
Deferred cash payments		666,677		-
Other		136,296		211,984
	$	8,072,442	$	753,365