Anuvu Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

The following table provides a reconciliation in the change in the Company’s allowance for doubtful accounts for the years ended December 31 (in thousands):



	2015			2014
Accounts receivable, gross	$	102,089		$	92,985
Less: Allowance for doubtful accounts	(8,640		)	(7,468		)
Accounts receivable, net	$	93,449		$	85,517

Movements in the balance for bad debt reserve and sales allowance for the years ended December 31, 2015, 2014, and 2013, are as follows (in thousands):



	2015		2014		2013
Beginning balance	$	7,468	$	1,929	$	7
Bad debt reserve acquired in acquisition	—		—		1,931
Additions charged to statements of operations	1,172		5,539		760
Less: Bad debt write offs	—		—		(769		)
Ending balance	$	8,640	$	7,468	$	1,929

Fair Value Measurements, Recurring and Nonrecurring

The following tables summarize the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, and 2014, respectively (in thousands):



	December 31, 2015	Quotes Prices in Active Markets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Other Unobservable Inputs (Level 3)
Earn-out liability ⁽¹⁾	9,652	—	—	9,652
Global Eagle warrants ⁽²⁾	24,076	24,076	—	—
Total financial liabilities	33,728	24,076	—	9,652



	December 31, 2014		Quotes Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Earn-out liability ⁽¹⁾	$	1,710	$	—	$	—	$	1,710
Global Eagle warrants ⁽²⁾	52,671		52,671		—		—
Total financial liabilities	$	54,381	$	52,671	$	—	$	1,710

(1) Includes $9.7 million earn-out liability for WOI, assets of RMG, navAero and masFlight assumed in business combinations for the year ended December 31, 2015, and $1.7 million earn-out liability for EIM, a subsidiary of AIA assumed in the Business Combination for the year ended December 31, 2014.

(2) Includes 6,173,228 public warrants at December 31, 2015 and 10,148,508 public warrants at December 31, 2014.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present the fair value roll-forward reconciliation of level 3 assets and liabilities measured at fair value for the year ended December 31, 2015, and 2014, respectively (in thousands):



	Earn-Out Liabilities
Balance, December 31, 2014	$	1,710
Fair value of earn-out liability assumed in 2015 acquisitions	9,652
Payments of earn-out liability	(1,519		)
Non-cash adjustment to 2014 EIM earn-out liability	(191		)
Balance, December 31, 2015	$	9,652



	Earn-Out Liabilities
Balance, December 31, 2013	$	1,421
Fair value of earn-out liability assumed in Purple Inflight Entertainment's acquisition	136
Net changes in valuation	1,580
Payments of earn-out liability	(1,427		)
Balance, December 31, 2014	$	1,710

Fair Value, by Balance Sheet Grouping

The following table shows both the carrying amounts, which approximate the fair values, of the Company's notes payable in the consolidated financial statements (in thousands):



	December 31, 2015				December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Convertible senior notes ⁽¹⁾	$	70,013	$	78,557	$	—	$	—
Notes payable	2,229		2,229		3,015		3,015

(1) The fair value of the convertible senior notes is inclusive of the conversion feature, which was originally allocated for reporting purposes at $13.0 million, and is included in "Additional paid-in capital" in the Consolidated Balance Sheets (see Note 12).