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, 2014

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



	2014			2013
Accounts receivable, gross	$	92,985		$	66,145
Less: Allowance for doubtful accounts	$	(7,468	)	$	(1,929	)
Accounts receivable, net	$	85,517		$	64,216

Movements in the balance for allowance for doubtful accounts for the years ended December 31, 2014, 2013, and 2012, are as follows (in thousands):



	2014	2013		2012
Beginning balance	1,929	7		—
Bad debt reserve acquired in acquisition	—	1,931		—
Bad debt expense	5,539	760		7
Less: Bad debt write offs	—	(769	)	—
Ending balance	7,468	1,929		7

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, 2014, and 2013, respectively (in thousands):



	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



	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 $1.7 million and $1.4 million earn-out liability for EIM, a subsidiary of AIA assumed in the Business Combination for the years ended December 31, 2014 and 2013, respectively.

(2) Includes 10,148,508 public warrants at December 31, 2014 and 15,904,383 public warrants, including 333,333 sponsor warrants at December 31, 2013.

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, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Notes payable	$	3,015	$	3,015	$	10,801	$	10,801

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, 2014, and 2013, respectively (in thousands):



	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



	Series C Warrants			Common Stock Warrants			Earn-Out Liability		Total
Balance, December 31, 2012	$	5,482		$	2,696		$	—	$	8,178
Reclassification to equity	(2,879		)	(2,696		)	—		(5,575		)
Change in value	132			—			—		132
Elimination of Row 44 Series C-1 Preferred Warrants held by AIA	(2,735		)	—			—		(2,735		)
Level 3 EIM earn-out liability	—			—			1,421		1,421
Balance, December 31, 2013	$	—		$	—		$	1,421	$	1,421

- 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.

+ References + Details

- 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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