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During the three and nine months ended September 30, 2015, an impairment charge of $1,416 was recorded related to certain software development projects which the Company has decided not to move forward with. The $1,416 charge is included in product development expense in the accompanying consolidated statements of operations. 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Substantially all of the Company&#8217;s revenues are derived from U.S. sources.</p> <p style="widows: 1; text-transform: none; text-indent: 0.55in; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">&#160;</p> <p style="widows: 1; text-transform: none; text-indent: 0px; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;"><b>Recent Accounting Standards</b></p> <p style="widows: 1; text-transform: none; text-indent: 0px; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">&#160;</p> <p style="widows: 1; text-transform: none; text-indent: 0.55in; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">In April 2014, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued amended guidance for reporting discontinued operations. Under the new guidance, only disposals that represent a strategic shift having a material impact on an entity&#8217;s operations and financial results shall be reported as discontinued operations, with expanded disclosures. This amendment will be effective for the first annual reporting period beginning after December 15, 2015. 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The core principle of the guidance is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This amendment was originally to be effective for annual and interim periods beginning after December 15, 2016. In August 2015, the FASB approved a one year deferral of the effective date to December 15, 2017 and early adoption is permitted, but not before the original effective date of December 15, 2016. The standard permits the use of either the retrospective or cumulative effect transition method. 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Current GAAP does not contain explicit guidance on how to account for such share-based payments. This updated guidance is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements.</p> <p style="widows: 1; text-transform: none; text-indent: 0.55in; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">&#160;</p> <p style="widows: 1; text-transform: none; text-indent: 0.55in; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">In April 2015, the FASB issued updated guidance on the presentation of debt issuance costs in financial statements. The new guidance requires an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. This guidance will be effective for the Company beginning in the first quarter of 2016 on a retrospective basis for all periods presented, with early adoption optional. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements.</p> <p style="widows: 1; text-transform: none; text-indent: 0.55in; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">&#160;</p> <p style="widows: 1; text-transform: none; text-indent: 0.55in; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">In September 2015, the FASB issued updated guidance on business combinations accounting requiring the acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Previously, such adjustments were required to be retrospectively recorded in prior period financial information. The amended guidance will be effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The standard is to be applied prospectively, with early adoption permitted. The Company does not expect the impact of the adoption of this guidance to be material to the consolidated financial statements.</p> <p style="widows: 1; text-transform: none; text-indent: 0px; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;"><b>3. 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The purchase price was valued at $29,893, consisting of (i) $15,000 in cash paid at closing, (ii) 327,784 shares of the Company&#8217;s common stock valued at $3,893, issued at closing and held in escrow for potential post-closing working capital and/or indemnification claims, and (iii) $11,000 to be paid within six months of closing in cash, shares of the Company&#8217;s common stock or a combination of cash and shares of the Company&#8217;s common stock, in the Company&#8217;s sole discretion. In addition to the purchase price, the former members of Tea Leaves are eligible to receive an additional $20,000 (50% in cash and 50% in shares of the Company&#8217;s common stock) based on the achievement of a specified Tea Leaves financial target as of December 31, 2016, as set forth in the Membership Interest Purchase Agreement between the Company, Tea Leaves and the other parties thereto. This earn-out payment is contingent upon the continued employment with the Company of certain former members of Tea Leaves through December 31, 2016, and, if earned, is due to be paid in the first quarter of 2017. In the three months ended September 30, 2015, there was no earn-out accrual recorded with respect to the December 31, 2016 financial target. 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The results of operations of Tea Leaves, which are not material to the consolidated operating results for the three months ended September 30, 2015, have been included in the accompanying consolidated financial statements from August 6, 2015, the closing date of the acquisition.</p> <p style="widows: 1; text-transform: none; text-indent: 0px; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">&#160;</p> <p style="widows: 1; text-transform: none; text-indent: 0.55in; margin: 0pt 0px; font: 10pt 'times new roman', times, serif; white-space: normal; letter-spacing: normal; color: #000000; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal;">The following table summarizes the preliminary allocation of the assets acquired and liabilities assumed based on their fair values on the acquisition date. 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In addition, the outstanding warrants to purchase redeemable convertible preferred stock automatically converted into warrants to purchase common stock, or were automatically exercised upon closing of the IPO.</td> </tr> </table> 46655000 132694000 54314000 154560000 747000 -6899000 -5456000 -17580000 4406000 778000 137000 19000 197000 535000 32139000 29893000 49815000 27300000 18615000 3900000 68975000 40090000 24985000 3900000 19099000 11247000 4370000 3482000 23722000 13463000 6359000 3900000 30716000 16053000 14245000 418000 45253000 8810000 5470000 26627000 18626000 2510000 900000 P9Y6M P6Y6M P8M12D P9Y2M12D P6Y7M6D 1507000 6071000 6063000 5755000 5574000 20283000 5893698 6280216 9.94 10.27 P6Y5M23D 29249000 5734000 4141403 8.89 5505000 929265 12.09 7.35 274474 12.47 0.4942 0.4340 P6Y3M P6Y3M 0.0192 0.0173 665218 12.01 40000 691538 12.01 1923 11.99 24397 11.99 6977328 217491 140084 6535002 84751 12852489 416667 145763 6025555 6228882 35622 7084312 43782 6344941 629432 66157 6872816 87738 6287716 428260 69102 70622000 8848000 5676414 327784 14.00 18457235 577055 2845000 1016000 253000 three five three three 1 1.00 Cambridge BioMarketing Group, LLC Tea Leaves Health, LLC 8000000 P10Y P10Y P10Y P3Y 545000 1636000 1695000 4623000 35000000 55000000 82250000 40000000 39000000 60000000 59250000 67750000 45000000 66903000 The interest rate on the Credit Facility is equal to the London Inter-Bank Offered Rate, or LIBOR, plus a variable rate ranging from 2.75% to 4.0% depending on the Company's consolidated leverage ratio, as defined in the Credit Facility agreement, and there is a 0.50% commitment fee on the unused portion of the Revolver. 0.005 0.0275 0.0400 0.0428 285753 567403 The number of shares of common stock reserved for issuance under the 2014 Plan is subject to an automatic increase on January 1 of each year through January 1, 2024, by the lesser of (a) 4% of the total number of shares of the Company's common stock outstanding on December 31 of the preceding calendar year and (b) a number of shares determined by the Board of Directors. The number of shares of common stock reserved for issuance under the ESPP will automatically increase on January 1 of each calendar year from January 1, 2015 through January 1, 2024 by the least of (a) 1% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, (b) 400,000 shares and (c) a number determined by the Board of Directors that is less than (a) and (b). 1129000 4354000 112000 1388000 7.73 5.36 2331000 5942000 1471000 4940000 5381000 P1Y3M26D P1Y2M27D 2800000 5183000 1343000 2867000 4611000 207000 Unless otherwise determined by the Board of Directors, common stock will be purchased for participating employees at a price per share equal to the lower of (a) 85% of the fair market value of a share of the common stock on the first date of an offering, or (b) 85% of the fair market value of a share of the common stock on the date of purchase. 0.15 10.51 107000000 7433000 Everyday Health, Inc. evdy 10-Q --12-31 32366501 false 0001358483 Non-accelerated Filer 2015-09-30 2015 Q3 1416000 1416000 -0.00 -0.76 -0.40 -0.60 3893000 30404529 21962026 32138214 31807776 327784 50% in cash and 50% in shares of the Company's common stock 134000 <p style="font: 10pt times new roman,times,serif; margin: 0pt;"><b>Initial Public Offering</b></p> <p style="font: 10pt times new roman,times,serif; margin: 0pt;">&#160;</p> <p style="font: 10pt times new roman,times,serif; margin: 0pt; text-indent: 0.55in;">On April 2, 2014, the Company closed its initial public offering of common stock (&#8220;IPO&#8221;). The IPO, including the additional shares issued and sold on April 30, 2014 pursuant to the underwriters&#8217; exercise of their over-allotment option, resulted in net proceeds of $70,622, after deducting underwriting discounts and commissions and offering costs borne by the Company totaling $8,848. As a result of the IPO, the Company issued and sold 5,676,414 shares of common stock at a public offering price of $14.00 per share, and all of the Company&#8217;s redeemable convertible preferred stock outstanding automatically converted into an aggregate of 18,457,235 shares of common stock, including 577,055 additional shares of common stock related to the Series G redeemable convertible preferred stock ratchet provision.</p> The calculation of the weighted-average remaining useful life is based on weighting the net book value of each asset in its group, and applying the weight to its respective remaining amortization period. RSUs granted during the nine months ended September 30, 2015 includes the grant of 40,000 units of performance-based RSUs that are dependent upon the Company meeting certain performance criteria. Upon closing of the IPO on April 2, 2014, all of the Company's outstanding redeemable convertible preferred stock automatically converted into shares of common stock. In addition, the outstanding warrants to purchase redeemable convertible preferred stock automatically converted into warrants to purchase common stock, or were automatically exercised upon closing of the IPO. 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The par value of the common stock was not adjusted as a result of the reverse stock split. All issued and outstanding common stock and per share amounts contained in the Company's consolidated financial statements and related notes thereto have been retroactively adjusted to reflect this reverse stock split for all periods presented. The reverse stock split was effected on March 14, 2014. 00013584832014-04-30 90000000 10000000 -534000 1470000 0001358483evdy:ClosingMemberevdy:TeaLeavesMember2015-08-012015-08-06 20000000