Anuvu Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

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

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

3 Months Ended

Mar. 31, 2014

Schedule of Segment Reporting Information, by Segment

Segment revenue, expenses and contribution profit for the three month periods ended March 31, 2014 and 2013 derived from the Company's Connectivity and Content segments were as follows (in thousands):



	Three Months Ended March 31,
	2014						2013
	Content		Connectivity	Consolidated			Content		Connectivity		Consolidated
Revenue:
Licensing	$	52,331	—	$	52,331		$	23,304	$	—	$	23,304
Service	11,061		16,494	27,555			3,872		6,294		10,166
Equipment	198		5,884	6,082			—		9,043		9,043
Total Revenue	63,590		22,378	85,968			27,176		15,337		42,513
Operating Expenses:
Cost of Sales	46,144		18,973	65,117			20,503		15,246		35,749
Contribution Profit	17,446		3,405	20,851			6,673		91		6,764
Other Operating Expenses				30,243							28,916
Loss from Operations				$	(9,392	)					$	(22,152	)

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 March 31, 2014, and December 31, 2013, respectively (in thousands):



	March 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)	$	1,444	$	—	$	—	$	1,444
Global Eagle warrants (2)	86,960		86,960		—		—
Total financial liabilities	$	88,404	$	86,960	$	—	$	1,444

(1) Includes $1.4 million earn-out liability for EIM, a subsidiary of AIA assumed in the Business Combination.

(2) Includes 15,571,050 public warrants.



	December 31, 2013		Quotes Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
Earn-out liability (1)	$	1,421	$	—	$	—	$	1,421
Global Eagle warrants (2)	71,570		71,570		—		—
Total financial liabilities	$	72,991	$	71,570	$	—	$	1,421

(1) Includes $1.4 million earn-out liability for EIM, a subsidiary of AIA assumed in the Business Combination.

(2) Includes 15,567,650 public warrants.

Fair Value, by Balance Sheet Grouping

The following table shows both the carrying amounts, which approximate the fair values, of the Company's financial assets and liabilities in the consolidated financial statements at March 31, 2014 and December 31, 2013, respectively (in thousands):



	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial liabilities:
Notes payable	$	7,702	$	7,702	$	10,801	$	10,801

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

The following table presents the fair value roll-forward reconciliation of level 3 assets and liabilities measured at fair value basis for the period ended March 31, 2014, (in thousands):



	Earn-Out Liability
Balance, December 31, 2013	$	1,421
Change in value	23
Balance, March 31, 2014	$	1,444

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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