Note 5 – Prepaid expenses and other current assets

 

On August 28, 2019, the Company entered into a radio advertising agreement with iHeart and issued 1,000,000 shares of common stock valued at $3.4 million for future advertising to be provided to the Company from August 2019 to August 2021. The Company issued an additional 125,000 shares valued at $0.1 million on March 5, 2020 pursuant to the agreement. The agreement requires the Company to spend a minimum amount for talent and other direct iHeart costs. The Company committed to using $1.7 million of the media inventory by August 28, 2020, with the remainder of the advertising available through August 28, 2021. The Company is in the process of amending the contract to extend the dates by which the related media spend is to be used and expects an amendment to be finalized prior to the first commitment date. Prepaid advertising was $3.0 million as of June 30, 2020 and $2.8 million as of December 31, 2019. Of the total prepaid amount, $2.6 million and $1.7 million is recorded in prepaid expenses and other current assets and $0.4 million and $1.1 million in other noncurrent assets as of June 30, 2020 and December 31, 2019, respectively.