Quarterly report pursuant to Section 13 or 15(d)

Prepaid Expenses and Other Current Assets

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Prepaid Expenses and Other Current Assets
 9 Months Ended
Sep. 30, 2019
Prepaid Expenses and Other Current Assets [Abstract]  
Prepaid Expenses and Other Current Assets
Note 5 – Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following:

Dollars in thousands
  
September 30, 2019
    
December 31, 2018
  
Prepaid insurance
  
$
50
    
$
15
  
Prepaid advertising
    
1,291
      
-
  
Other
    
590
      
254
  
Total prepaid expenses and other current assets
  
$
1,931
    
$
269
  

On August 28, 2019, the Company entered into a radio advertising agreement with iHeartMedia + Entertainment, Inc.  On August 28, 2019, the Company issued to iHeart Media 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.  During each of the three and nine month periods ended September 30, 2019, $0.6 million of the $3.4 million of the prepaid advertising was incurred. In addition, the agreement requires the Company to spend a minimum amount for talent fees or other direct iHeart costs. As of September 30, 2019, the additional commitment is for less than $0.1 million. The company has committed to using $1.7 million of the media inventory by August 28, 2020, with the remainder of the inventory available through August 28, 2021. The Company expensed $0.6 million of the media inventory in the period ended September 30, 2019, reducing the Prepaid Advertising balance to $2.8 million, of which $1.3 million is recorded in Prepaid Expenses and Other Current Assets and $1.5 million in Other Noncurrent Assets.