Balance Sheet Components

3 Months Ended

Mar. 31, 2025

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 and Allowance for Credit Losses – The Company receives payments from advertising customers based upon contractual payment terms; accounts receivable is recorded when the right to consideration becomes unconditional and are generally collected within 90 days. The Company generally receives payments from digital and print subscription customers at the time of sign up for each subscription; accounts receivable from merchant credit card processors are recorded when the right to consideration becomes unconditional and are generally collected weekly. Accounts receivable have been reduced by an allowance for credit losses. The Company maintains the allowance for estimated losses resulting from the inability of the Company’s customers to make required payments. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering current market conditions and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations. Accounts receivable are written off when deemed uncollectible and collection of the receivable is no longer being actively pursued. Accounts receivable as of March 31, 2025 and December 31, 2024 of $31,561 and $31,115, respectively, are presented net of allowance for credit losses.

The following table summarizes the allowance for credit losses activity:

	Three Months Ended March 31, 2025 (unaudited)			Year Ended December 31, 2024
Allowance for credit losses beginning of year	$	1,458		$	374
Additions		-			1,934
Deductions – write-offs		(17	)		(850	)
Allowance for credit losses end of period	$	1,441		$	1,458

Prepayments and Other Current Assets – Prepayments and other current assets are summarized as follows:

	As of
	March 31, 2025 (unaudited)		December 31, 2024
Prepaid expenses	$	1,990	$	2,078
Prepaid supplies		75		62
Refundable income and franchise taxes		149		149
Employee retention credits		2,468		2,468
Total prepayments and other current assets	$	4,682	$	4,757

Under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the subsequent extensions of the CARES Act, the Company was eligible for a refundable employee retention credit subject to certain criteria. As of March 31, 2025 and December 31, 2024, the Company has a receivable balance of $2,468 as presented in the above table in prepaid expenses and other current assets on the condensed consolidated balance sheets.

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

	As of
	March 31, 2025 (unaudited)			December 31, 2024
Office equipment and computers	$	1,777		$	1,777
Leasehold Improvements		54			54
Furniture and fixtures		133			133
		1,964			1,964
Less accumulated depreciation and amortization		(1,857	)		(1,816	)
Net property and equipment	$	107		$	148

Depreciation and amortization expense for the three months ended March 31, 2025 and 2024 was $41 and $67, respectively. No impairment charges for the three months ended March 31, 2025 and 2024 were incurred.

Platform Development – Platform development costs are summarized as follows:

	As of
	March 31, 2025 (unaudited)			December 31, 2024
Platform development	$	33,066		$	31,434
Less accumulated amortization		(24,595	)		(23,319	)
Net platform development	$	8,471		$	8,115

A summary of platform development activity for the three months ended March 31, 2025 (unaudited) is as follows:

Platform development beginning of year	$	31,434
Costs capitalized		1,618
Total capitalized costs		33,052
Stock-based compensation		14
Platform development end of period	$	33,066

Amortization expense for the three months ended March 31, 2025 and 2024 was $1,276 and $1,549, respectively. Amortization expense for platform development is included in cost of revenues on the condensed consolidated statements of operations. No impairment charges for platform development for the three months ended March 31, 2025 and 2024 were recorded on the consolidated statements of operations and comprehensive loss.

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

	As of March 31, 2025 (unaudited)							As of December 31, 2024
	Carrying Amount		Accumulated Amortization			Net Carrying Amount		Carrying Amount		Accumulated Amortization			Net Carrying Amount
Developed technology	$	17,333	$	(17,333	)	$	-	$	17,333	$	(17,333	)	$	-
Trade name		5,181		(1,862	)		3,319		5,181		(1,799	)		3,382
Brand name		12,115		(4,081	)		8,034		12,115		(3,729	)		8,386
Subscriber relationships		2,150		(1,443	)		707		2,150		(1,379	)		771
Advertiser relationships		14,519		(4,639	)		9,880		14,519		(4,269	)		10,250
Database		1,140		(1,140	)		-		1,140		(1,140	)		-
Digital content		355		(355	)		-		355		(355	)		-
Total intangible assets	$	52,793	$	(30,853	)	$	21,940	$	52,793	$	(30,004	)	$	22,789

Intangible assets subject to amortization were recorded as part of the Company’s business acquisitions. Amortization expense for the three months ended March 31, 2025 and 2024 was $849 and $920, respectively, and is included in cost of revenue on the condensed consolidated statements of operations and comprehensive loss.

No impairment charges from continuing operations for the three months ended March 31, 2025 were recorded for intangible assets. Impairment charges for the three months ended March 31, 2024 of $1,198 was recorded as a result of the disposition of Fexy Studios intangible assets, including the advertiser relationships of $608 and brand names of $590, on the consolidated statements of operations and comprehensive loss.

Accrued Expenses and Other – Accrued expenses and other are summarized as follows:

	As of
	March 31, 2025 (unaudited)		December 31, 2024
General accrued expenses	$	3,082	$	2,140
Accrued payroll and related taxes		3,819		3,805
Accrued publisher expenses		3,019		4,066
Liabilities in connection with acquisitions and dispositions		30		30
Assumed lease liability		40		390
Other accrued expenses		812		559
Total accrued expenses and other	$	10,802	$	10,990