NOTE 7. CONSOLIDATED FINANCIAL STATEMENTS DETAILS

Consolidated Balance Sheets Details

Accounts Receivable, Net

Accounts receivable consisted of the following:

The amount that the Company invoices and collects from advertising clients includes the cost of the advertisement placed for them with broadcasters and the amount of the commission earned by the Company.  The average commission earned by the Company is less than 15% of the total amount invoiced and collected from the advertising clients.

Property, Equipment and Improvements, Net

Property, equipment and improvements consisted of the following:

The construction in progress balance at December 31, 2017 consisted primarily of expenditures related to the build-out of office space at the Company’s headquarters, which was completed in the first half of 2018. Depreciation expense was $725 and $52 for the years ended December 31, 2018 and 2017, respectively.

Accounts Payable

Accounts payable consisted of the following:

Accounts payable – advertising reflects the cost of advertisements placed with broadcasters on behalf of the Company’s advertising clients.

Consolidated Statements of Operations and Comprehensive Loss Details

Net Revenues

Net revenues for the periods presented were comprised of the following:

During the years ended December 31, 2018 and 2017, the Company’s advertising business made $145,352 and $113,513 in gross media placements, of which $121,143 and $95,989, respectively, were billed directly to customers. Of the amounts billed directly to clients, $105,737 and $83,040 represented media-related costs netted against billings during the years ended December 31, 2018 and 2017, respectively.

Other Income (Expense), Net

Other income (expense), net for the periods presented was comprised of the following:

Interest expense, net for the year ended December 31, 2017 included amortization of deferred debt discounts and issuance costs of $3,740 related to the Company’s convertible notes payable.