Revenue from Contract with Customer [Text Block] | 2. Adoption of ASC 606 On January 1, 2018, 606 not January 1, 2018 606, not The Company recorded a net reduction to opening accumulated deficit of $4,085, January 1, 2018 606, three nine September 30, 2018 606 not 606 not no 606 606 Revenue Recognition The Company generates its revenues principally from subscriptions either directly with advertisers or with advertising agencies to its platform for the management of search, social, display and eCommerce advertising. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. The Company determines revenue recognition through the following steps: ● Identification of the contract, or contracts, with a customer; ● Identification of the performance obligations in the contract; ● Determination of the transaction price; ● Allocation of the transaction price to the performance obligations in the contract; and ● Recognition of revenue when, or as, the Company satisfies a performance obligation. The subscription fee under most contracts is variable based on the value of the advertising spend that the Company’s advertisers manage through the Company’s platform and is generally invoiced and recognized on a monthly basis. Contracts with direct advertisers and certain contracts with independent advertising agencies also include a minimum monthly fee that is recognized over the duration of the contract, commencing on the date that the Company’s platform is made available to the customer. Due to the nature of the platform and the services performed under the subscription agreements, the Company determined that the variable and fixed subscription fees should be allocated to the monthly period in which the Company has the contractual right to bill under the contract. As a result, the adoption of ASC 606 not Disaggregation of Revenues Revenues by geographic area, based on the billing location of the customer, were as follows for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 United States of America $ 9,192 $ 11,995 $ 28,987 $ 38,040 United Kingdom 1,755 2,358 5,877 7,419 Other (1) 2,206 3,871 7,942 11,840 Total revenues, net $ 13,153 $ 18,224 $ 42,806 $ 57,299 ( 1 No 10% Contract Balances Accounts receivable, net The timing of revenue recognition may September 30, 2018 December 31, 2017 Customer advances The Company records advances from customers for cash payments that are received in advance of its performance of the underlying services. These cash payments are generally received on a weekly basis at amounts that are at the discretion of the customers, based on established advertising budgets. The unused portion of these advances from customers is included within accruals and other current liabilities on the accompanying condensed consolidated balance sheets. Under the Company’s terms of service, individual customer advances that are not 180 180 January 1, 2018 three nine September 30, 2018 nine September 30, 2018 Balance at December 31, 2017, as previously reported $ 2,003 Impact of adoption of ASC 606 on January 1, 2018 (1,445 ) Balance at January 1, 2018, as adjusted 558 Customer advances received 5,826 Subscription revenue recognized (on a gross basis) (5,781 ) Breakage revenue recognized (156 ) Balance at September 30, 2018 $ 447 Costs to Obtain and Fulfill Contracts The Company capitalizes certain contract acquisition costs, consisting primarily of commissions paid and the related payroll taxes that are incremental to obtaining customer contracts, when customer contracts are signed (“deferred costs to obtain contracts”). The Company also capitalizes certain contract fulfillment costs, consisting primarily of on-boarding and integration services for new and existing customers performed by the Company’s professional services team. The professional services payroll and the related payroll taxes that are incremental to fulfilling customer contracts are capitalized (“deferred costs to fulfill contracts”). The deferred costs to obtain and fulfill contracts are amortized based on the expected period of benefit, which the Company determined to be three The Company classifies deferred costs to obtain and fulfill contracts as current or non-current based on the timing of when the related amortization expense is expected be recognized. The current portion of these deferred costs is included in prepaid expenses and other current assets, while the non-current portion is included in other non-current assets on the accompanying condensed consolidated balance sheets. Changes in the balances of deferred costs to obtain and fulfill contracts during the nine September 30, 2018 Costs to Obtain Contracts Costs to Fulfill Contracts Balances at January 1, 2018, as adjusted for adoption of ASC 606 $ 1,760 $ 880 Deferred costs 875 272 Amortization (1,152 ) (472 ) Balances at September 30, 2018 $ 1,483 $ 680 ASC 606 The following table reflects the accounts impacted by the adoption of ASC 606 September 30, 2018: September 30, 2018 As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Assets Prepaid expenses and other current assets $ 4,937 $ 3,679 $ 1,258 Other non-current assets 2,399 1,494 905 Liabilities Accrued expenses and other current liabilities $ 8,862 $ 10,463 $ (1,601 ) Stockholders' equity Accumulated deficit $ (262,351 ) $ (266,115 ) $ 3,764 The following tables reflects the impact of the adoption of ASC 606 Three Months Ended September 30, Nine Months Ended September 30, As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) As Reported Balances Without Adoption of ASC 606 Effect of Change Higher/(Lower) Revenues, net $ 13,153 $ 13,119 $ 34 $ 42,806 $ 42,650 $ 156 Cost of revenues 6,459 6,392 67 20,994 20,794 200 Gross profit 6,694 6,727 (33 ) 21,812 21,856 (44 ) Operating expenses Sales and marketing 5,296 5,242 54 18,831 18,554 277 Research and development 5,471 5,471 — 17,443 17,443 — General and administrative 2,921 2,921 — 10,064 10,064 — Impairment of goodwill 14,740 14,740 — 14,740 14,740 — Total operating expenses 28,428 28,374 54 61,078 60,801 277 Loss from operations (21,734 ) (21,647 ) (87 ) (39,266 ) (38,945 ) (321 ) Other income, net 336 336 — 1,008 1,008 — Loss before provision for income taxes (21,398 ) (21,311 ) (87 ) (38,258 ) (37,937 ) (321 ) Provision for income taxes (96 ) (96 ) — (624 ) (624 ) — Net loss $ (21,494 ) $ (21,407 ) $ (87 ) $ (38,882 ) $ (38,561 ) $ (321 ) Net loss per share available to common stockholders, basic and diluted $ (3.71 ) $ (3.70 ) $ (0.01 ) $ (6.75 ) $ (6.69 ) $ (0.06 ) Practical Expedients and Exemptions The Company does not one |