Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 |
Summary of Significant Accounting Policies | ' |
Basis of Presentation | ' |
Basis of Presentation |
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The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). |
Basis of Consolidation | ' |
Basis of Consolidation |
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The consolidated financial statements include the accounts of Tremor Video, Inc. and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. |
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The operating results of Transpera have been included in the consolidated financial statements since the acquisition date of February 11, 2011. |
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During November 2012, the Company ceased operations of Tremor Video GmbH. The consolidated operating results include Tremor Video GmbH operations through the date operations ceased. |
Use of Estimates | ' |
Use of Estimates |
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The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to fair values and useful lives of intangible assets, fair values of stock-based awards, income taxes, and contingent liabilities. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. |
Initial Public Offering | ' |
Initial Public Offering |
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On July 2, 2013, the Company closed its initial public offering (“IPO”) of common stock in which the Company issued and sold 7,500,000 shares of common stock. Upon closing of the IPO, all of the Company’s outstanding mandatorily redeemable convertible preferred stock (“preferred stock”) automatically converted into 34,172,316 shares of common stock (which includes a one-time $15,849 non-cash preferred stock deemed dividend related to the issuance of 1,584,863 of additional shares of common stock in connection with the Series F preferred stock ratchet provision (refer to note 13)) and all of the Company’s outstanding Series II common stock automatically converted into 1,052,464 shares of common stock. In addition, the outstanding warrants to purchase preferred stock automatically converted into warrants to purchase 142,534 shares of common stock, and the warrants to purchase preferred stock liability of $790, which includes a $313 adjustment for the change in fair value from January 1, 2013 through July 2, 2013, was reclassified to additional paid-in capital. |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk |
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Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. All of the Company’s cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. The Company’s cash and cash equivalents may exceed federally insured limits at times. The Company has not experienced any losses on cash and cash equivalents to date. |
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The Company determines collectability by performing ongoing credit evaluations and monitoring its customers’ accounts receivable balances. For new customers and their agents, which may be advertising agencies or other third parties, the Company performs a credit check with an independent credit agency and may check credit references to determine creditworthiness. The Company only recognizes revenue when collection is reasonably assured. |
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For the years ended December 31, 2013, 2012 and 2011, there were no customers that accounted for more than 10% of revenue. At December 31, 2013 and 2012, there were no customers that accounted for more than 10% of outstanding accounts receivables. |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents |
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The Company considers cash deposits and all highly liquid investments with a maturity of three months or less to be cash equivalents. The fair value of the Company’s cash and cash equivalents approximates their cost plus accrued interest because of the short-term nature of the instruments. The Company’s cash deposits are held at multiple high-credit-quality financial institutions. The Company’s cash deposits at these institutions often exceeded federally insured limits. |
Short-Term Investments | ' |
Short-Term Investments |
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The Company accounts for short-term investments in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, “Investments—Debt and Equity Securities.” Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. |
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The Company classifies its short-term investments in marketable securities as available-for-sale at the time of purchase and re-evaluates such classifications at each balance sheet date. All short-term investments are carried at fair value. Unrealized gains and losses associated with available-for-sale securities are recorded as a component of accumulated other comprehensive income within stockholders’ equity (deficit). Realized gains and losses, if any, are recorded in the consolidated statements of operations. If the Company intends to sell or if it is more likely than not that it will be required to sell an impaired security prior to recovery of its cost basis, then the full amount of impairment will be charged to earnings. |
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At December 31, 2013 and 2012, the Company did not hold any short-term investments. |
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At December 31, 2011, short-term investments represented investments in U.S. Government and agency securities, high quality corporate bonds and commercial paper with maturity dates in excess of 90 days but less than one year. All the Company’s short-term investments were held at a single high-credit-quality financial institution and exceeded federally insured limits. |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments |
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The Company utilizes fair value measurements when required. The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, other current assets, other long-term assets, accounts payable and accrued expenses, security deposits payable and outstanding balances on the Company’s credit facility and related accrued interest expense approximate fair value as of December 31, 2013 and 2012 due to the short-term nature of those instruments and for the outstanding balances on the credit facility, the interest rates the Company believes it could obtain for borrowings with similar terms. Refer to note 3 for a discussion of the determination of fair value for the reported amounts of its warrants to purchase preferred stock and contingent consideration on acquisition. |
Restricted Cash | ' |
Restricted Cash |
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At December 31, 2013 and 2012, the Company had total restricted cash outstanding of $600 and $1,221, respectively, which were used to collateralize a standby letters of credit for office spaces in New York, New York and Boston, Massachusetts. Pursuant to the terms of the standby letters of credit, $621 of the total restricted cash outstanding at December 31, 2012 matured during 2013 and such collateral is no longer restricted as of December 31, 2013. The remaining total restricted cash of $600 outstanding as of December 31, 2013 matures in 2021 and solely relates to collateral for the standby letter of credit for office space in New York, New York. |
Accounts Receivable, Net | ' |
Accounts Receivable, Net |
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The Company extends credit to customers and generally does not require any security or collateral. Accounts receivable are recorded at the invoiced amount. The Company carries its accounts receivable balances at net realizable value. Management evaluates the collectability of its accounts receivable balances on a periodic basis and determines whether to provide an allowance or if any accounts should be written down and charged to expense as a bad debt. The evaluation is based on a past history of collections, current credit conditions, the length of time the account is past due and a past history of write-downs. A receivable balance is considered past due if the Company has not received payments based on agreed-upon terms. |
Property and Equipment, Net | ' |
Property and Equipment, Net |
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Property and equipment are stated at cost, less accumulated depreciation. Depreciation expense on property and equipment is calculated using the straight-line method over the following estimated useful lives: |
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Furniture and fixtures | | 7 years |
Computer hardware | | 3 years |
Office equipment | | 3 years |
Computer software | | 3 years |
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Leasehold improvements are amortized over the shorter of the remaining life of the lease or the life of the asset. The cost of additions, and expenditures that extend the useful lives of existing assets, are capitalized, while repairs and maintenance costs are charged to operations as incurred. |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets |
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Property and equipment subject to amortization are reviewed for impairment in accordance with FASB ASC 360, “Accounting for the Impairment or Disposal of Long-Lived Assets,” whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company has not identified any such impairment of its long-lived assets at December 31, 2013 and 2012, and therefore, for the years ended December 31, 2013 and 2012, no impairment losses have been recorded. |
Goodwill and Intangible Assets, Net | ' |
Goodwill and Intangible Assets, Net |
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Primarily all of the Company’s goodwill and intangible assets originated with the acquisition of ScanScout, Transpera and the acquired assets of InPlay (refer to note 6). In connection with the Scanscout acquisition, the Company recorded goodwill totaling $27,998 and intangible assets totaling $31,900. In connection with the Transpera acquisition, the Company recorded goodwill totaling $971 and intangible assets totaling $2,550. In connection with the acquired assets of InPlay, the Company recorded goodwill totaling $750 and intangible assets totaling $1,200. On August 7, 2012 the Company purchased a domain name from a third party for $50, the Company determined that this intangible asset had an indefinite life. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. |
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The Company assesses goodwill for impairment annually as of October 1, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company adopted FASB Accounting Standards Update (“ASU”) 2011-08, “Testing Goodwill for Impairment,” which gives companies the option to qualitatively assess whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is not more likely than not that the fair value of the reporting unit is less than its carrying value, no further assessment of that reporting unit’s goodwill is necessary. |
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If it is more likely than not that the fair value of the reporting unit is less than its carrying value, then the goodwill must be tested using a two-step process based on prior accounting guidance, and if the carrying value of a reporting unit’s goodwill exceeds its implied fair value, an impairment loss equal to the excess is recorded. |
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The Company has not identified any such impairment of its goodwill at December 31, 2013 and 2012, and therefore, for the years ended December 31, 2013 and 2012, no impairment losses have been recorded. |
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Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives on a straight-line method as follows: |
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Technology | | 5 to 7 years |
Customer relationships | | 5 to 10 years |
Trademarks and trade names | | 5 to 7 years |
Non-competition agreements | | 1 year |
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Intangible assets are reviewed for impairment whenever events or changes in circumstances such as, but not limited to, significant declines in revenue, earnings or cash flows or material adverse changes in the business climate indicate that the carrying amount of an asset may be impaired. During October 2013, the Company performed an impairment test relating to customer relationships acquired in connection with the acquisition of InPlay in 2012 and, based on such test, concluded that it is impaired. The Company recorded an impairment amount of $132 to reduce the carrying value of this intangible asset, which is included as part of amortization expense. The Company has not identified any other impairment losses on the remaining intangible assets. |
Deferred rent liability | ' |
Deferred rent liability |
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The Company recognizes and records rent expense related to its lease agreements, which includes scheduled rent increases, on a straight-line basis beginning on the commencement date over the life of the lease. The Company also recognizes and records rent concessions, in the form of reduced rent payments, on a straight-line basis over the life of the lease agreement. Differences between straight-line rent expense and actual rent payments are recorded as Deferred rent liability and presented as a current liability in the Consolidated Balance Sheets. |
Revenue Recognition and Deferred Revenue | ' |
Revenue Recognition and Deferred Revenue |
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The Company generates revenue primarily from the delivery of in-stream video advertisements for brand advertisers and agencies through the Tremor Video Network. The Company also generates revenue from selling licenses to advertisers, agencies and publishers. Revenue is recognized when the related services are delivered based on the specific terms of the contract, which are commonly based on the number of impressions delivered or by the actions of the viewers. The Company recognizes revenue when four basic criteria are met: (1) persuasive evidence exists of an arrangement with the client reflecting the terms and conditions under which the services will be provided; (2) services have been provided or delivery has occurred; (3) the fee is fixed or determinable; and (4) collection is reasonably assured. Collectability is assessed based on a number of factors, including the creditworthiness of a client and transaction history. Amounts billed or collected in excess of revenue recognized are included as deferred revenue. |
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The Company recognizes revenue from the delivery of video ads in the period in which the video ads are delivered. Specifically, revenue is recognized for video ad delivery through the Tremor Video Network upon (1) engagement by the consumer with a video ad for cost per engagement (“CPE”) priced ad campaigns; (2) delivery of impressions served for CPM-priced ad campaigns without demo guarantees; (3) delivery of each impression served to a target demographic for ad campaigns priced on a CPM-basis with a guaranteed demographic reach; (4) completion of a video ad by the consumer for cost per video completed (“CPVC”) priced ad campaigns; (5) positive shift in a consumer’s favorability towards a brand for cost per brand-shift (“CPS”) priced ad campaigns; (6) shift of a consumer’s intent away from a competing brand for cost per conquest (“CPQ”) priced ad campaigns; and (7) completion of a video ad by a consumer, which video ad is viewable for its duration, for cost per completed and viewable video (“CPV&C”) priced ad campaigns. |
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In the normal course of business, the Company acts as an intermediary in executing transactions with third parties. The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company is acting as the principal or an agent in the Company’s transactions. In determining whether the Company acts as the principal or an agent, the Company follows the accounting guidance for principal-agent considerations. The determination of whether the Company is acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of each arrangement. While none of the factors individually are considered presumptive or determinative, because the Company is the primary obligor and is responsible for (1) identifying and contracting with third-party advertisers, (2) establishing the selling prices of the video ads sold, (3) performing all billing and collection activities, including retaining credit risk, and (4) bearing sole responsibility for fulfillment of the advertising even if the Company lacks a video advertising campaign to deliver to these video ad impressions, the Company acts as the principal in these arrangements and therefore reports revenue earned and costs incurred related to these transactions on a gross basis. |
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The license fees for the Company’s licensed analytics solutions are based on the number of impressions being analyzed through these solutions. The Company recognizes revenue with respect to these solutions on a cost per impression basis based on the number of impressions being analyzed in a given month. Typically, the Company’s license terms are for one year periods. In limited cases, the Company charges a minimum monthly fee. |
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Deferred revenue arises as a result of contractual billings in excess of recognized revenue and differences between the timing of revenue recognition and receipt of cash from the Company’s clients. As of December 31, 2013 and 2012 there were $271 and $210, respectively, of amounts either billed in excess of recognized revenue or for services for which cash payments were received in advance of the Company’s performance of the service under the arrangement and recorded as deferred revenue in the accompanying Consolidated Balance Sheets. |
Cost of Revenue | ' |
Cost of Revenue |
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Cost of revenue primarily represents the video advertising inventory costs under the Company’s publisher contracts, third party hosting fees and third party serving fees incurred to deliver the video ads run through the Tremor Video Network. Cost of revenue also includes costs of licenses from third party data providers utilized in the Company’s licensed analytics solution. Substantially all of the Company’s cost of revenue is attributable to video advertising inventory costs under its publisher contracts. Cost of revenue is recognized on a publisher-by-publisher basis at the same time that the associated advertising revenue is recognized. Substantially all of the Company’s exclusive publisher contracts contain minimum percentage fill rates on qualified video ad requests, which effectively means that the Company must purchase this inventory even if the Company lacks a video advertising campaign to deliver to these video ad impressions. The Company recognizes the difference between the contractually required fill rate and the number of video ads actually delivered on the publisher’s website, if any, as a cost of revenue as of the end of each applicable monthly period. Historically, the impact of the difference between the contractually required fill rate and the number of ads delivered has not been material. Costs owed to publishers but not yet paid are recorded in the consolidated balance sheets as accounts payable and accrued expenses. |
Technology and Development Expenses | ' |
Technology and Development Expenses |
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Technology and development costs primarily consist of salaries, incentive compensation, stock-based compensation and other personnel-related costs for development, network operations and engineering personnel. Additional expenses in this category include costs related to development, quality assurance and testing of new technology, maintenance and enhancement of the Company’s existing technology and infrastructure as well as consulting, travel and other related overhead. The Company engages third-party consulting firms for various technology and development efforts, such as documentation, quality assurance, and support. Due to the rapid development and changes in the Company’s business and underlying technology to date, the Company has expensed development costs in the same period that those costs were incurred. |
Sales and Marketing Expenses | ' |
Sales and Marketing Expenses |
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Sales and marketing expenses primarily consist of salaries, incentive compensation, stock-based compensation and other personnel-related costs for marketing and creative employees and the advertiser focused, publisher focused and licensing solution focused sales and sales support employees. Additional expenses in this category include marketing programs, consulting, travel and other related overhead. These costs are expensed when incurred and are included in sales and marketing expenses. Advertising costs, which are comprised of print and internet advertising, were $833, $1,372 and $1,358 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Stock Based Compensation Expenses | ' |
Stock-Based Compensation Expenses |
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The Company accounts for stock-based compensation expense under FASB ASC 718, “Compensation—Stock Compensation,” which requires the measurement and recognition of stock-based compensation expense based on estimated fair values, for all share-based payment awards made to employees and FASB ASC 505-50, “Equity-Based Payments to Non-Employees,” which requires the measurement and recognition of stock-based compensation expense based on the estimated fair value of services or goods being received, for all share-based payment awards made to other service providers and non-employees. |
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FASB ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company’s consolidated statements of operations. |
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The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures. |
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Calculating the fair value of the stock-based options requires the input of subjective assumptions, including the expected term of the stock-based awards and stock price volatility. The Company estimates the expected life of stock options granted based on the simplified method, which the Company believes, is representative of the actual characteristics of the awards. The Company estimates the volatility of the common stock on the date of grant based on the historic volatility of comparable companies in its industry. The Company selected the risk-free interest rate based on yields from United States Treasury zero-coupon issues with a term consistent with the expected life of the awards in effect at the time of grant. Estimated forfeitures are based on actual historical pre-vesting forfeitures. The Company has never declared or paid any cash dividends and has no plan to do so. Consequently, it used an expected dividend yield of zero. |
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In the event of modification of the conditions on which stock-based compensation was granted, an additional expense is recognized for any modification that increases the total fair value of the share-based payment arrangement or is otherwise beneficial to the employee/other service provider or non-employee at the modification date. |
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At December 31, 2013, accrued compensation, benefits and payroll taxes includes $1,614 of stock-based long-term incentive compensation expense related to the Company’s long-term sales incentive compensation plan. Payments earned under the plan for the 2013 plan year will be made in stock-based awards to participants that remain employed with the Company through June 30, 2014. If any participant in the Company’s long-term incentive compensation plan is not employed on June 30, 2014, such participant will forfeit any rights to receive payments under the plan. |
Income Taxes | ' |
Income Taxes |
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Income taxes represents income taxes paid or payable (or received or receivable) for the current year and includes any changes in deferred taxes during the year. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carry-forwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which the Company expects to recover or settle those temporary differences. The Company recognizes the effect of a change in tax rates on deferred tax assets and liabilities in the results of operations in the period that includes the enactment date. Deferred income tax expense represents the change during the period in deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. The Company reduces the measurement of a deferred tax asset, if necessary, by a valuation allowance if it is more likely than not that the Company will not realize some or all of the deferred tax asset. As a result of the Company’s historical operating performance and the cumulative net losses incurred to date, the Company does not have sufficient objective evidence to support the recovery of the net deferred tax assets. Accordingly, the Company has established a valuation allowance against net deferred tax assets for financial reporting purposes because the Company believes it is more likely than not that these deferred tax assets will not be realized. |
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The Company accounts for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon technical merits, it is “more-likely-than-not” that the position will be sustained upon examination. Potential interest and penalties associated with unrecognized tax positions are recognized in income tax expense. |
Net Loss Per Share Attributable to Common Stockholders | ' |
Net Loss Per Share Attributable to Common Stockholders |
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Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. |
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Diluted net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period, adjusted to reflect potentially dilutive securities using the treasury stock method for warrants to purchase preferred stock, warrants to purchase common stock, preferred stock, stock option awards and restricted stock unit awards. Due to the Company’s net loss attributable to common stockholders, (i) warrants to purchase preferred stock, (ii) warrants to purchase common stock, (iii) preferred stock, (iv) stock option awards, and (v) restricted stock unit awards were not included in the computation of diluted net loss per share attributable to common stockholders, as the effects would be anti-dilutive. Accordingly, basic and diluted net loss per share attributable to common stockholders is equal for the periods presented. |
Comprehensive Loss | ' |
Comprehensive Loss |
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Comprehensive loss consists of unrealized gains and losses on available-for-sale securities and currency translation adjustments. Total comprehensive loss and its components are presented in the accompanying Consolidated Statements of Comprehensive Loss. |
Foreign Currency Translation Adjustments | ' |
Foreign Currency Translation Adjustments |
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The functional currency of the Company’s international subsidiaries is accounted for in their local currency. The Company translates the financial statements of these subsidiaries to U.S. dollars using period-end exchange rates for assets and liabilities, and average exchange rates for revenue and expenses. Translation gains and losses are recorded in accumulated other comprehensive income as a component of stockholders’ equity (deficit). For the years ended December 31, 2013, 2012 and 2011, a cumulative translation adjustment of $(150), $(58) and $177, respectively, was recorded as a component of comprehensive loss in the consolidated financial statements. Realized and unrealized transaction gains and losses are included in the Consolidated Statements of Operations in the period in which they occur, except on inter-company balances considered to be long-term. Transaction gains and losses on inter-company balances which are considered to be long-term are recorded in accumulated other comprehensive income. Since 2012, the Company considered their inter-company balances to be long-term in nature. Net gain (loss) resulting from transactions denominated in foreign currencies was accounted for in the Company’s consolidated statements of operations and totaled $12, $28 and $(256) for the years ended December 31, 2013, 2012 and 2011. |
Business Combinations | ' |
Business Combinations |
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In business combinations, the Company determines the acquisition purchase price as the sum of the consideration provided. The underlying principles require that the Company recognize separately from goodwill the assets acquired and the liabilities assumed, generally at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Company’s estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations. The direct transaction costs associated with the business combination are expensed as incurred. |
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When the Company issues stock-based awards to an acquired company’s selling stockholders, the Company evaluates whether the awards are contingent consideration or compensation for post-business combination services. The Company’s evaluation includes, among other things, whether the vesting of the stock-based awards is contingent on the continued employment of the selling stockholder beyond the acquisition date. If continued employment is required for vesting, the awards are treated as compensation for post-acquisition services and recognized as future compensation expense over the required service period. |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements |
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FASB Accounting Standards Update No. 2013-02 — Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income |
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In February 2013, the FASB issued new authoritative guidance requiring new disclosures about reclassifications from accumulated other comprehensive income to net loss. This new guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the financial statements where net loss is presented or in the notes thereto, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net loss but only if the amount reclassified is required under US GAAP to be reclassified to net loss in its entirety in the same reporting period. For other amounts that are not required under US GAAP to be reclassified in their entirety to net loss, an entity is required to cross-reference to other disclosures required under US GAAP that provide additional detail about those amounts. The new guidance is effective prospectively for annual and interim periods beginning after December 15, 2012. The Company adopted this guidance in its interim period beginning April 1, 2013. The adoption of this new guidance did not have a material impact on its consolidated financial statements and the required disclosures are provided in note 14. |