Documentos de Académico
Documentos de Profesional
Documentos de Cultura
STATES
AND EXCHANGE
SECURITIES
D.C
Washin gton
III
COMMISSION
SEC
20549
111aiJ
Processing
11II11II11I11III1111I0I
1101
13002673
SEC
MI%
REPORT PURSUANT TO SECTION
ANNUAL
LKI
the
For
For
91d
Mi
OF THE
peorn
transition
Commission
to
Number
File
1934
404
SEQJ
the
OF
SECURITIvkw17gkJ1CT
ember 31 2012
cnIe4
fiscaJyar
REPORT PURSUANT TO
TRANSITION
2013
ACT OF
1934
______
1-3476
autobytel
Your
Automotive
Lifetime
Advisor
Autobytel Inc
Exact Name
of Registrant
as Specified
in
Charter
Its
33-0711569
Delaware
of Incorporation
State
MacArthur
18872
California 92612-1400
Irvine
of principal executive
Address
Registrants
of each
Title
Common
by check
mark
if
the
Indicate
by check
mark
if
the
Indicate
by check
Act of 1934
to
such
during
by check
Indicate
for
such
Yes
El
for the
mark
that
period
registrant
is
the
for
or
whether
the
registrant
the
was
registrant
to
file
to
has
filed
shorter
mark
by check
to
the
of
best
amendment
to
See
the
of
disclosure
this
mark
whether
of large
accelerated
filer
the
filers
delinquent
knowledge
Form 10-K El
definitions
Large
if
in definitive
registrants
by check
Indicate
company
registrant
post
is
proxy
such
Based
on
outstanding
the
closing
shares
of
As of February
Documents
by
13
filed
was
the
re2istered
Market
15d
Section
by
to
Act
Securities
or Section
required
and posted on
13
file
of
the
15d
or
such
of
Yes
the
Securities
and
reports
No
El
Yes
Act
No
El
EJ
Exchange
been
has
subject
its
232.405
Website
corporate
of
this
chapter
the
Data
Interactive
any every
if
during
12
preceding
months
or
files
Item 405
to
information
or
accelerated
large
Accelerated
El
pursuant
filer accelerated
accelerated
sale
common
25
2013
and
Definitive
into
Part
III
price
the
registrant
of $3.75
stock
held
8855400
by
for
shell
is
our
common
non-affiliates
shares
company
of our
stock
was
common
on
as
defined
The
were
$33
filer
by
company
l2b-2 of
Capital
contained
in
reporting
the
Market
herein and
in Part
reference
III
filer or
Rule
Smaller
El
smaller
if
Rule
NASDAQ
approximately
stock
in
not
non-accelerated
filer
reporting
not check
is
incorporated
accelerated
smaller
Non-accelerated
El
filer
an
filer
filer
S-K
of Regulation
statements
this
smaller
the
2b-2 of
reporting
will not
of
be
Form 10-K
reporting
Exchange
Act
company
company
Act
Yes
El
on June
29
2012
No
the
LJ
aggregate
market
value
million
outstanding
by Reference
Incorporated
of our
reference
mark whether
by check
Indicate
Portions
be
S-T section
Do
of
to
registrant
electronically
of Regulation
submit and
to
required
the
405of
Rule
to Section
required
that
which
on
Capital
Act None
the
in
exchange
NASDAQ
El
has submitted
Rule 405
reports
of
as defined
pursuant
reports
all
12g
Section
issuer
period
No
Yes
90 days
past
seasoned
required
such
to
pursuant
well-known
registrant
months
of each
The
registered
not
225-4500
Act
the
No
Indicate
any
is
to
shorter
contained
or
12
949
of
share
per
registrant
mark whether
preceding
requirements
filing
File required
the
12b
Section
Name
$0.00
Securities
Indicate
to
Code
Zip
area code
including
pursuant
registered
offices
class
par value
Stock
number
telephone
Securities
200
Suite
Boulevard
No
Identification
I.R.S Employer
Proxy
of
this
Statement
Annual
for the
Report
on
2013
Annual
Form 10-K
Meeting
expected
to
be
filed within
fiscal year
end
are
incorporated
rtjJ
Inc
Autobytel
31
2012
Page
Number
Partl
Item
Business
Item
1A
Risk
Item
lB
Unresolved
Factors
Staff
17
Comments
17
Item
Properties
Item
Legal
Proceedings
Item
Mine
Safety
17
17
Disclosures
Part
Market
Item
for
Selected
Item
Item
Financial
Managements
7A
Item
and
Controls
Item
9B
Other
of
18
Discussion
and Analysis
Disclosures
and Supplementary
with
and Disagreements
in
9A
Matters
Data
Statements
Changes
Item
Stockholder
Related
18
and Qualitative
Quantitative
Financial
Item
Equity
Securities
Equity
Item
Common
Registrants
II
of Financial
About
18
Condition
Market
26
Risk
26
Data
Accountants
on Accounting
and Financial
26
Disclosure
26
Procedures
26
Information
Part HI
Item
10
Directors
Executive
Item
11
Executive
Compensation
Item
12
Officers
and Corporate
27
Governance
27
Ownership
Security
of Certain
Relationships
and
Accountant
Fees
Item
13
Certain
Item
14
Principal
Beneficial
Related
Owners
Transactions
and Management
and Director
and Related
Independence
Stockholder
Matters
27
27
27
and Services
Part IV
Item
15
Exhibits
and Financial
Statement
Schedules
28
29
Signatures
FORWARD-LOOKING STATEMENTS
The
so
that
can
on Form
10-K
Report
estimates expects
with
any
our
regarding
and objectives
and
predictions
materially
involve
from these
on forward-looking
be
may
statements
and Analysis
Discussion
could
that
whether
herein
are
actual
to
as
only
and
materially
Investors
disclaim
expressly
future
information
and
also
are
our goals
just
differ
forward-
in
Managements
undue
place
were made
to
are
may
results
reflected
otherwise
or
statements
statements
to
they
any obligation
events
regarding
contains
Item
not
urged
particular
outlook
actual
and
on which
connection
in
In
our
from those
Factors
of the date
anticipates
used
forward-looking
control
Risk
as
forward-
plans or achieve
out our
carry
our
differ
to
and
Form 10-K
on
These
Item 1A
in
by the foregoing
entirety
able
beyond
results
speak
new
of
be
such
such
statements
capabilities
Report
of Operations
any obligation
in their
will
are
discussed
statements
result
as
qualified
which
and Results
and
profitable basis
on
cause
to those
Condition
do not undertake
statements
contained
statements
Factors
we
that
of
many
uncertainties
Forward-looking
by law we
forward-looking
no assurance
is
Words
Annual
This
contain
similar substance
forward-looking
expectations
Annual
of
decisions
by reference
Act of 1995
and words
identify
This
do so successfully
to
of Financial
product
statements
statements
required
There
able
and
risks
include
statements
be
will
performance
new
opportunities
objectives
we
that
or
and
financial
or
operations
regarding
information
forward-looking
investment
herein
Reform
Litigation
disclose
to
informed
are incorporated
proxy statement
parts
of the Private Securities
future
make
and
prospects
meaning
expectations
and
performance
looking
of
companies
encourages
which
of
our
the
future
companys
projects intends
discussion
statements
understand
and
SEC
Commission
Exchange
better
within
statements
looking
and
Securities
investors
alter
or
update
All
reliance
Except
as
any
forward-looking
statements
cautionary
PART
item
Business
Inc
Autobytel
used
in
Annual
this
Inc and
Autobytel
was
in
incorporated
Form
Report on
1996
10-K
the
terms
we us
our
the
Unless specified
Company
as
otherwise
Autobytel
or
refer
to
subsidiaries
its
Overview
We
are an
Leads
referrals
consumers with
who may
not be
contact
Your
Lifetime
Our
in
available
free
Investor
loans through
and
services
them with
vehicle
or
lenders
consumers
vehicles
sources
that
The
the
throughout
provide
mission
of
lifecycle
inquiries
For
consumers
these
consumers
consumers
consumers
for
to
be
to
is
needs
automotive
their
provide
submit
these
to
financing
Companys
entire
to
Our
products
Leads
Websites
vehicle
offer
ability
Vehicle
Company
our
may
data
Autobytel.com
and the
decisions
purchase
Leads
Finance
financing
by engaging
lending
other
website
our flagship
leasing
and
programs
advertising
include
or
purchasing
conventional
online
which
automotive
their
regarding
Dealers
requesting
regarding
this
Significant
website
Annual
of charge
our
NASDAQ
Business
as
Market
on
Inc
Form 10-K
Our Code
of our website
Autobytel
At or through
soon as practicable
18872
of Conduct
and
copy
MacArthur
the
quarterly
after
on
Information
www.autobytel.com
this
and
Investor
reports
material
Ethics
of the code
may
Boulevard
Suite
on Form
is
website
10-Q
also
200
be
at
current
filed
free
California
by
incorporated
reports
with
the Corporate
obtained
Irvine
not
is
of our website
section
electronically
available
is
our
Relations
on
we
Form 8-K
or furnished
Governance
of charge
make
to
the
link
by writing
92612-1400
for 2012
the year
profitability
reports
reports
Stock
at
Form 10-K
Developments
Profitability
For
located
on
annual
section
Secretary
is
Report
these
to
Relations
the Corporate
year of
aid
to
consumers
Automotive Advisor
amendments
inquiries
and
products
Company Websites
tools
the
secure
to
corporate
reference
all
and
sell
Information
Available
and
able
consumers
the
marketing
contact
to
submit
to
ability
market and
websites
information
Dealers
requesting
Dealer
that
assists
automotive
retail dealers Dealers and automotive
company
new and used vehicles to consumers through our programs for online lead
services
marketing
automotive
consumer-facing
the
automotive
Manufacturers
manufacturers
ended
since
December
2004
31 2012 we
achieved
net
income
of
$1.4
million
This
is
our
second
consecutive
of
to
Webs
Enhancements
ite
During 2011 we
new consUmer
we
believe
enhanced
will
tools
informed
three
every
to
to
seven
behavioral
vehicle
destinations
to
offerings
with
interact
Your
as
on an
the
at
better
their
as explore
serve
our brand
to
new
the
same
time through
manage
maintenance
for
trade-ins
Automotive
Lifetime
than
new
and other
and
news
industry
channel
million views
In
events
was
and as of February
grown
quickly
vehicles
stay
resell
goal
to
is
attract
automotive
shopping
years
Youlube
Autobytel
reflects
new MyGarage
their
our
their
serving
which
principles
our
for
Advisor
only
reflects
Autobytel.com
or private
In 2012 we made
homepage
redesign that
many ongoing website enhancements such as
exclusive
vehicle
video
reviews
well
well
video
section
which
contains
as
as
new
offerings as
shows
Autobytel.com
and navigational
design
options
basis rather
ongoing
as
and
Autobytel.com
of the redesigned
Specifically
while
consumers
well
as
offers
special
well
as
experience
website
our flagship
The launch
purchase
for
of
redesign
research
customized
more
researching
Autobytel.coms
multi-phase
Automotive Advisor
shopping
specific
and
recalls
of consumers
scope
needs
offering
of Manufacturer
By expanding
broad
those
for
ownership service
of
phase
and
richer
consumers
and
first
Lifetime
and automotive
internet
offer
content
vehicle
the
Your
be
to
proposition
consumer
ongoing
launched
2013
conjunction
launched
also
with
Since
launch
its
had over
the channel
the launch
11.0
of
new
this
the beginning
at
and
million views
video
of
channels
this
advertising
of auto
coverage
on Autobytel.com
section
2012
subscribers
14000
new
included
as video
audience
with
run
website
uses
has
of
rate
1.5
month
per
Mobile Launch
new
mobile
pricing
from
mobile
optimized
Dealer
price
in
With
mobile
traffic
We
believe
and
Lead
Lead
the
information
rate
allows
our
version
enable
visitor
us
to
Based
on
the
23%
of over
we
of
their
launched
comprehensive
truly
Autobytel.com
Future
us
to
vehicle
is
In
check
this
addition
and request
all
free
enhanced
Dealer
franchise
Dealers
an
of
lists
the
just
first
focus
will
phases
of
phase
on
our
efforts
to
mobile
more
offering
ownership experience
brand
our
reposition
and driving
footprint
benefit
to
growth across
our
and
advertising
based
sales
By
Also
deliver
training
seeing
during
higher
these
Polk
90 days
of
with
the
on detailed
in
2011
as well
R.L
and
to
rely
Leads
Co
the
rates
closing
close
Leads
we
of
at
started
we
match
Leads
the
we
using
the
we
R.L
from our
third
parties
and
Co
Polk
from our
we
Leads
deliver
twice
from
from Manufacturer
acquire
Leads
over
data automotive
Leads
feedback
those
as
Polk
for
rates
Internally-Generated
Lead
We
addition
closing
rates
sales
Non-Internally-Generated
In
customers
closing
that
suggest
Leads
our
us
provide
vehicle
Websites
Internally-Generated
on multiple sources
can
help
providing
increased
2012 we
of
wholesale
to
actual
to
our
deliver
to
party
to
our
and
customers
from
acquire
the industry
third
third
party
derived
average
on Autobytel.com have
shopping
submission
them to gain
better understanding
of the
number of key metrics to our customers allowing
Leads from us
We can now optimize the mix of Leads we
may realize from acquiring
they
also
are
and
to
or acquired
our
most current
report
that
our Dealers
customers and
both
compare
within
Leads
of
Leads
Non-Company
data
addition
process
of
sales
could
we
Autobyel.com
and
car reviews
vehicles
for
browse inventory
Dealer
local
of
videos read
shopping
advanced
on the device
based
Focus
performance
Manufacturers
opportunities
to
find
to
consumers
our
ultimately
increasing
Sales
the
quality
vehicle
Findings
deliver
confirm
to
Our
that
and
websites
their
performance
against
In
dealerships
mobile version
and manage
Dealers
will
thus
to
Internally-Generated
suppliers
revenue
and
photographs
at
mobile
tools
is
quality
customers
conversion
with
launches
Analytics
Leads from
generate
suppliers
the
this
grow
to
shopping
connect
to
these
that
Websites
customers
and
recommendations
Performance
evaluate
of
consumer
Dealers
local
are
they
the experience
and services
products
wholesale
allow
that
view
to
when
mobile-optimized
and optimizes
the website
the opportunity
the launch
find
to
continuing
content
consumers
for
ways
Company
tools
with
consumers
optimized
satisfaction
that
has shopping
This
Autobytel.com
access
on the go and
while
of
to
using
is
consumers
gives
Concurrent
allows
consumer
States
offer mobile
data
website
version
the mobile
the
mobile devices
quotes
the United
friendly
experience
their
which
directory
launched
to
technology
This
2012 we
June
In
shape
continued
percentage
improvements
actionable
of our
data
allocations
budget
to
measurements
of quality
focus
our
to
we
for
are
Lead
now
placing
purchasing
Dealer
Internally-Generated
Also by reporting
online
management
considerable
the
online
buying behavior
advertising
intelligence
in
of
and
the
potential
dealership
hands
of
our
Leads from us
acquisition
Leads and
and
that
retention
are
strategies
on
dealerships
for
us
to
to
which
support
we
We
believe
this
on
evaluation
our
high
will
of cost
to
the
third
believe
vehicle
that
this
Dealers
sales
support
compared
the
to
discussed
allow
us
Dealers
the
and
Dealers
data
should
strategy
to
our
for
performance
party
Leads and
supply
8% more
year with
increased
in
of
We
quality
terms
result
ultimately
have
to
we
above
at
increased
us
because
Leads
number
the
with
Internally-Generated
relationships
our
For 2012 we
number of Dealers
stronger
believe
with
of
our
Dealers
and
Dealers
our
based
are of
both
in
ended
the
2011
year-end
Stock Repurchase
On
authorized
up
to
additional
an
common
fund
future
repurchases
shares
repurchased
On
The
been
bid
implemented
with
to
at
of
We
cash
an
began
repurchased
1-for-S
reverse
2012
during
the
The
million
were cancelled
may
and
stock
price
returned
us
to
any time
on March
at
programs
average
of
repurchase
do not require
common
our
repurchasing
of $1.5
price
aggregate
programs
that
program
the repurchase
we
authorizations
modify or terminate
may suspend
shares
common
the
on
stock
with
Stock
On
was
Split
of
split
common
our
Stock
post-Reverse
Price
increase
to
continued
the
$0.00l
stock
for
paid
all
authorized
to
Prior
Requirement
were subject
Listing
Qualifications
to
stock
common
the
order
Reverse
delisting
informed
staff
period
in
presented
maintain
to
minimum
Stock
Split
we
on
The
from trading
had
we
that
us
periods
all
maintain
stock
the
to
possible
for
prices
earliest
share
per
NASDAQ
The
on
All share
the
common
of the
that
and
as of
value
par
basis
adjusted
Split
occurred
price
requirement
Bid Price
Nasdaq
had
it
listing
requirement
listing
26 2012
July
as though
Split
Minimum
per share
continued
this
Stock
Markets
Capital
Minimum Bid
the
the Reverse
reflect
$1.00
least
Market
Capital
regained
Requirement
Background
The
the
vehicle
regarding
U.S new
the
best
internet
has
become
pricing
considered
both
surpassing
reach
third
13.5%
signs of
15.3
at
should
result
submission
increased
in
of
15.1
in
2010
to
J.D
internet
that
as
and Associates
primary
several
during
Autobytel.com
many Dealers and
phases
with
in
and
research
2012
Dealers
80%
that
of
shopping
all
CNW
tool
source
primary
Manufacturers
decisions
buying
automotive
local
of the purchase
their
as
all
informed
reported
vehicle
because
process primarily
make
to
communicating
begin
Power
purchasing
use the
thus
information
as an
internet
efficient
programs
LMC
Automotive
million
Co
internet
for
and
formerly
2012
for
fueled
respectively
of the
necessary
include
2011 or 14.5
with R.L Polk
Leads by consumers
the
to
addition
to
million
use
by
the vehicle
financing
in
marketing
press release
recovery
and
In
in
information
engaged
the
consumers
for
moved
which
websites
compared
continued
million
tool
and
showed
magazines
find
easily
have
report
through
2013
to
2012
in
to
primary
buyers
party
and
consumers
According
increased
consumer
television
those
by consumers
adopted
method
availability options
most current
Marketing/Researchs
shoppers
rapidly
become
vehicle
light
been
has
internet
has
Additionally
sales
we
NASDAQ
compliance
internet
shows
The
$3.83
was
for
These
repurchase
authorized
repurchase
transactions
private
of available
were repurchased
the Reverse
for
of
price
in
Industry
to
the use
through
Trading
adjusted
The
with
compliance
way
in
these
of Directors
in the
value of the common stock
on July 12 2012 There was no change
par
and
other
common
stock
their
exercise/conversion
options
derivatives
including
reason
primary
NASDAQ
the
11 2012
Split
all
have
were not
market or
Under
stock
approved
Board
began
and
compliance
closing
2012
June
had
The
stock
July
Market
presented
on
stock
open
of Directors
shares
2012
during
Stock
amounts
the
on
Board
our
shares
i-for-S
Capital
time
that
of our common
million
of common
number of shares
Reverse
up
to
2012
and unissued
$1.5
to
million
$2.0
specific
will
of
from time
stock
purchase
We
13 2012 we announced
February
the repurchase
J.D
iD
Power
and
by the strong
consumers
Power
and
engaged
Associates
the
vehicle
We
2012
light
vehicle
automotive
U.S
2013
forecasting
in
performance
in
U.S
Associates
for
believe
purchasing
process
by Dealers
and
vehicle
light
this
and
sales
market
recovery
increased
2013
Strategy
Our
automotive
goal
is
marketing
to
Further Increasing
obtained
through
search engine
website
drive
paid
traffic
Traffic
to
to
our
variety
optimization
search
larger share
garner
We
services
Revenues
of
or
Company
Websites
of
the
achieve
from
SEO
direct
to
and
sources
search engine
website
plan
the
which
is
is
on
SEM
and partnering
monetized primarily
dollars
through
spent
direct
Welisites
navigation
of optimizing
which
with
is
though
to
keywords
the practice
other
annually
the following
our Company
including
the practice
marketing or
marketing
objective
Traffic
methods
of
billions
this
website
the creation
principal
Traffic
in
website
our
that
of Vehicle
on
content
provide
Leads
that
Websites
Company
natural
Websites
on keywords
of bidding
publishers
to
Company
our
Manufacturers
strategies
to
drive
on search
links
to
is
search
traffic
to
to
engines
our websites
are delivered
to
our
and Manufacturer
Dealer
space
customers
to
transaction
higher
than
maintain
high
closing
Leads
and
with
only
sell
and
other
Further increasing
through
Our
SEO
and
navigation
Continuing
in
best
which
These
destinations
class
enhancement
website
the section
of
Further increasing
SEO
SEM
and
believe
we
thereby
increase
page views
significant
continue
we
to
third
also
offer
WebLeads
in-market
online
Websites
activities
acquisition
from
visitation
direct
Webs
under
Enhancements
ite
Websites
increased
Through
to
websites we
our
and
engagement
increased
an
significant
above
as discussed
enhancements
that
most
our
our
comprehensive
as
improve website
believe
of
functionality
Websites
For 2012
make
continuously
and
design
Autobytel.com
and
We
Websites
the
Company
our
visits
other
Company
our
to
by greater
interface
We
and
provide
directly
and
programs
traffic
on our Company
Leads
conversion
of
rate
per visitor
Sales
Leads
of Vehicle
increase the
to
number of Vehicle
Leads
the
number of Dealers
in
providing
customizable
providing
additional
with
relationships
customers
that
our
to
overall Dealer
number
network
Dealer
our
to
of Vehicle
Leads sold
to
our
constitute
retail
Dealer
they
sales
to
in
turn
these
to
provide
existing
customers
services
as
marketing
requirements
more effectively
help Dealers
that
utilize
the
internet
to
and
New
to
to
well
and
help
all
the
them
U.S
We
sell
sell
new and
market and
by
primarily
We
Customers
Manufacturer
Existing
new customers
as
of our services
aspects
in
vehicles
their
Dealers
their
Dealers
network
by improving
market
that
of our
to
vehicles
Sales
Dealers
our
to
each
to
marketing
satisfaction
Lead
Vehicle
sold
our Dealer
programs
added
and used
new
sell
Lead
value
Manufacturers
most
Vehicle
Leads
used
increasing
have
our
to
Our
vehicles
existing
Manufacturer
goal
is
to
Leads we
them
Increasing
seek
advertising
offerings
to
agencies
around
built
Manufacturers
marketers
Advertising
increase
to
Manufacturers
advertising
Leads sold
the
Further Increasing
customers
to
is
of
of
user
of website
into
revenue
higher
increasing
increasing
will
views
Leads
capturing
traffic
by consumers
Leads
to
tools and
number
page
increasing
market and
we
visitors
consistently
margins
profit
position
portfolio
develop
by Autobytel
in
SEM
Developments
Business
content
the
increasing
deliver
of
the
and
of our Company
research
to
Our goal
gross
to
to
high
transactions
sale
balanced
enhancements
including
them
to
SEO
significant
in
Leads
be
will
experience
purchase
rate
result
SEM
that
Lead
our
assist
Lead
our
Manufacturers
iControl
increase
to
increased
in
Significant
of
effective
are intended
the launch
increase
to
Sales
user
plan
and
as
to
of
We
of
in
generally
are
by
customers
increase
and
able
of our revenues
source
and
automotive
the conversion
Lead
Further Increasing
result
Websites
entitled
Leads could
into
to
the conversion
be
will
such
enhancements
for
activities
Websites
traffic
Leads
of
result
continue
to
plan
with
our
including
conversion
that
Non-Internally-Generated
and services
activities
expect
involved
Item
this
we
Company
our
to
Websites
paid
the quality
enhance
to
enhancements
Company
time
over
that
is
goal
and
conjunction
services
by improving
Company
our
to
In
Call products
acquisition
traffic
enhancements
and
we
market consisting
industry
products
Therefore
of advertising
sale
Leads
Internally-Generated
increase
Leads
Leads
those
are
of Non-Internally-Generated
wholesale
distribution
more vehicles
selling
and
quality
suppliers
through
varying
Leads
quality
the
through
by
Websites
customers
Leads
Internally-Generated
Lead
Manufacturers
High
our Dealer
for
of
are
Dealers
to
indirectly
the automotive
in
Dealers
We
Leads
and
Dealers
parties
relationships
strong
quality
rates
and
vehicles
Non-Internally-Generated
Non-Internally-Generated
sell
of our Leads
quality
i.e purchase
quality
market and
increase revenues
to
plan
the
Further increasing
them
help
We
Websites
on our Company
It
continue
space
and
to
As
and
our
belief
to
increase
that
prospective
available
on
our
traffic
if
for
our
to
the
to
We
revenues
advertising
is
existing
our
Revenues
and
time
intend
traditional
volume
to
of our
Company
will
recognize
Websites
to
include
and
this
rates
We
increased
our
goal
sales
other
value
is
with
also intend
performance
and
Websites
relationships
including
traffic
Finally
our
advertising
Websites
on our Company
leverage
display
Company
our
spent
to
event
of
the
metrics
to
by consumers
provide
by agreeing
to
increase
number
non-Manufacturer advertising
for
advertisements
typically
the
new
promotions
customers
of
their
advertising
individual
placed
monitored
pay higher
increases
and
Manufacturers
prices
our
by
by online
for
the
advertising
Continuing
relates
to
which
offerings
Our objective
to
believe
and
Strategic
believe
growth
advancements
in
Our
Item IA
We
Lead
display
vehicle
in
including
vehicle
additional
tools
vehicle
New
pricing
and
model
vehicle
Our
Leads
the
number
have
name
the
and
in
part
for
from
benefit
share
which
of
many
and
are
See
plans
and
addition
for delivery
to
to
has
own
of receiving
sales
of Leads
and
to
also
or
information
and
data
additional
provide
and
reviews
consumers
assist
with
other
specific
send
an
internet
direct
Lead
to
Dealers
parties
quote
our
network
have
that
and
price
in
the
to
placement
well
with
the
Leads
Lead
the
if
contact
the
for
wholesale
with
of
Dealers
Dealers
information
sell
as
the type
sell
manager
for
coverage
as
and
phone
verification
that
availability
also
Leads
name
quality
consumer
that
we
of
systems
to
Dealers
to
name of
the
of our
quality
proprietary
Lead
home address
validation
subjected
the
message
manager
with
been
send
high
the
involves
has
we
network
also
the
also
Lead
After
the
includes
trade-
decision
acquisition
include
may
make
any vehicle
including
and
requests
the
regarding
the vehicle
to
address
submit
to
information
needs
maintain
to
consumers
allows
consumers
verification
verification
Dealer
We
third
to
provides
are important
designed
is
Quality
dedicated
hours
Dealers
their
that
vehicles
and email
number
quality
area
We
to
Websites
incentive
and professional
Websites
information
research
and
rebate
Lead
market
the
in
Company
provide
process
consumer
Lead
the
that
options
validation
our
new
for
Vehicle
regarding
other
Our
geographic
24
data
customers
within
the Dealer
if
within
In
Lead
the
for
new
customer
in
specializing
program
verification
address
postal
Lead
name phone
Lead
our
as
Company
our
models
buy and
such
this
are
that
potential
Vehicle
our
valuable
our
through
regional
in
obtain
to
we
Websites
them
in
consumers
way
easy
to
efficiently
vehicle
additional
quality
for
consumers
the
generally
Manufacturers
and
on
vehicles
reaching
an
videos
assist
of articles
current
Vehicle
consumers
to
rates
number
vehicle
requested
Our
lease or
to
the
subject
coverage
in
phone
consumer
are
vendors
requested
and
vehicles
opportunities
strategies
participate
by consumers
photos
to
tools
available
also
programs
consumer
Company
data
pricing
their
makes
specific
wishes
address
with
is
closing
placement
vehicle
market
uncertainties
their
Manufacturers
submitted
our
our database
including
of
the
to
using
configuration
information
also include
Lead
increase
and
compare
of
consumer
usually
data
safety
Lead Program
of
partnerships
used
may do so
we
provide
implement our
market
to
and
marketing
no cost
at
consumers
as
Vehicle
the
data
automotive
availability
will
and
risks
to
subject
it
our product
successfully
opportunities
Leads may be
process
For
Websites
and
in whether
Lead
the
as
such
research
for
is
will
and
may
that
increase
to
by enhancing
programs
direct
our
we provide
shopping
specification
such
and
programs
Websites
Additional
analyses
we
vehicle
with
Lead
Vehicle
our
consumers
Company
our
Ofl
we
that
us
as
database
possible
ways
alternatives
new and
more
sell
our business
advance
allow
may
and plans
strategies
efficient
strategic
operations
no assurance
is
Manufacturers
in
advertising
For
their
and
Dealers
participate
non-Company
content
there
and
grow
review
alliances
strategic
our business
strengthen
to
is
to
and
intent
business
direct
Programs
provide
our
through
and
Accordingly
Dealers
customers
them
and
acquisitions
goal
continue
market and
Dealers
most effective
on consumer
of data
including
Services
Vehicle
assist
We
and services
Factors
Products and
acquire
Our
Alliances
and
amounts
significant
gather
create products
to
the
in
asset
to
ability
Risk
programs
that
data
Manufacturers
help
this
alliances
strategic
technology
our control
beyond
to
and
from
We
Services
use these
to
ultimately
revenues
acquisitions
We
will
intend
generate
Acquisitions
through
We
vehicles
we
is
to
purchasing
their
to
own
customers
Dealers
by Dealers
Dealers
for
any
in
Lead
in
that
right
results
our
Leads
according
to
for
specific
new
new
to
be
and
46%
with
of
Lead
on
charge
reserve
Lead
total
Lead Program
right
parameters
of
such
used
as
the time
in
2012
Vehicle
the price
for
in
and
Lead
make
either
our fees
notice
their
marketing
into
2011
to
Dealers
flat
upon
by contract
where
either
Revenues
are non-
Lead
fee
number of
fee
prior notice
and other
Revenues
respectively
per
per transaction
30 days
agencies
agreements
and
or
limited
offer
pay
us or through
notice
days
we
program
retail
varying
and
2011
to
with
directly
30
monthly subscription
by entering
2012
on
party
Pay-per-Sale
or through
generally
revenues
total
adjust
directly
programs
revenues
Our
introduced
to
of
contracts
into
either
by
consists
per transaction
the
the length
by entering
terminated
revenues
our recently
for
search
program
may
Manufacturers
Vehicle
prior notice
Lead
Vehicle
We
sale
Vehicle
under
however
of the contract
47%
Vehicle
Dealer
permitted
are
wholesale
upon
retail
vehicle
in
accounted
accounted
Used
network
the term
termInate
to
Vehicle
Leads
in
our
where we
states
time during
participate
our
contracts
new
retail
our
Generally
groups
The majority of our
exclusive
paid
in
participate
Dealer
major
third
has
party
from
at
parties
retail
the
new
from wholesale
respectively
program
allows
model mileage
consumers
year
and
to
search
location
of
for
used
vehicles
the vehicle
The
consumer
consumers
we
that
able
is
search
then
We
results
Lead
for
questionnaire
We
institution
We
respectively
this
program
program and
interest
in
obtain
have
center
with
and control
from
by
changes
or block
to
in
finance
posted
institution
or quotes
the
If
that
the vehicle
to
Lead
our
through
search
relevant
fee
and
products
consumer
Finance
an
expresses
Lead
we
addition
including
interest
we
we
offer
and
our
report
consumers
the
the
to
and 2011
The purpose
of
Lead
Finance
repair and
consumer
the
refer
consumers
are
finance
monthly
program
in 2012
inquire about
credit
Leads
Finance
revenues
customers
finance
or submit
automotive
an
Lead
total
financing
In
services
of
through
or
financing
to
Finance
of
other
vehicle
purchased
the
12%
Dealers
providers
party
and
surveys
and
Dealers
vehicle
for
loans
secure
to
from
not available
in
9%
for
third
is
participates
of telephone
our
Dealer
if
or
able
services
request
by
are provided
Leads accounted
consumers
for
that
be
other
submit
can
not
may
and
financing
financing
with
who
consumers
vehicle
consists
that
or not the
with
loan
vehicle
third
and
party
demand From
consutier
model
and
Lead
and
Web
to
of
their
increasing
vehicles
with
of
to
much
it
to
Dealers
assist
that
or
at
many
territories
challenges
group
Lead
in
increases
as
to
options
the Dealer
their
change
expand
inventory
target
Dealers
or
level
acquisition
or
gas prices
and
increase
and
focus
restrict
marketing
follows
as
five
from where
Lead
the
goals
enthusiast
from
coming
is
and
resources
dealership
quote buying
research
categories
publisher
their
to
such
patterns
contract
easier
allows
that
the dealership
dealerships
industry
easily
into
hard
different
apply
their
move
may
This
with
along
enables
the actual
each
of
and
expand
choose
their
their
increase
to
marketing
the
territory
sources
reach
by
range
for
greater distance
models
to
market
local
dealership
budget
their
spend
codes
territories/zip
protect
and are
ratios
to
to
For example
range
closing
for
for
simple
Leads
to
according
controlled
broader
can
sources
decisions
helps Dealers
Leads
Vehicle
Dealers
territory
higher
services
source
territory
Make/Model
and
and
Vehicle
Lead
mix
particular
make
can
manage
their
enables
Territory
Dealers
at
configure
performance
making
segments
based
technology
be
can
quick
stores
their
and
products
our proprietary
console dealerships
sources
can
Source
portal
Dealers
web
Lead
Dealers
more efficiently
the
is
it
their
at
also
sales
by Autobytel
makes
that
conditions
inventory
vehicle
closing
iControl
console
easy-to-use
programs
by Autobytel
iControl
Leads
Lead
Vehicle
consumers and
Vehicle
for
adjust
Services
automotive
our
by Autobytel
their
specific
resources
next
vehicle
specific
Dealers
the
satisfy
or per Lead
monthly subscription
program
in 2012
and 2011 respectively
revenues
Consumers
offers
experience
parties
in-market
web-based
strategy
regarding
to
directly
number
free
that
fee
iControl
filter
toll
information
Leads
sending
of vehicles
images
digital
additional
Lead
total
of
services
credit
from Finance
program
whether
third
conjunction
connecting
to
using
provide
obtain
that
and
in
available
fbr
Vehicle
6%
and
consumers
Dealer
consumer
information
offered
referral
In
to
to
or other
report
Dealer
call
evaluate
obtaining
refinancing
designed
these
to
Revenues
fee
determine
to
7%
opportunity
financing
each
Lead
to
is
is
participating
charge
or per
subscription
the
credit
the nearest
to
for
if
Lead
Dealer
the used
in
and
addition
En
the
contact
to
participates
program
offering vehicle
forwarded
choose
that
sources
lending
institutions
can
Leads accounted
Vehicle
Finance
conventional
submit
Lead Program
Finance
Our
price
then
may
Dealer
each
charge
the description
The consumer
the Dealer
to
from used
Revenues
display
parameters
deliver
system consumers
delivery
credit
and
locate
to
them
or conversely
increase
to
Leads by model
or
restrict
in
our iControl
the
number
those
for
with
limited availability
We
have
currently
WebLeads
WebLeads
visiting
offers
action
such
as
vehicle
the
Designed
Dealer
in
two ways
Used Car or
quote
is
requested
customers questions
product
keeps
and giving
the
Leads generated
the
coupon
consumer
by
the
the
Dealer
active
easy
coupons
under
way
are
is
goes
if
Second
an
visiting
tab
Lead
in
the
uses
timely
marketing
the
into
who
offer
Dealers website
our
Extranet
but remains
providing
Dealers website
so
through
tool
for
easy
salesperson
online
Dealer
submission
encouraged
are
targeted
Lead
can
submission
If
promptly address
repeat branding
Lead
to
of the site
areas
Autobytels
of
programs
consumers
to
messages
on certain
product
Lead
traditional
our
formatted
the
by Autobytel
Dealers website
the
clicks
tool
management
browser windows
the
relevant
visiting
customized special
leaves
integrated
in
and
consumer
the dealership
with
participation
consumers
website
with
consumers
re-engage
participating
Dealers
display
WebLeads
into
consumer
Dealers
with
that
the Dealer
presented
seamlessly
vehicle
options
directly
the
to
new
connection
coupon
When
First while
Specials
of our
work
to
multiple
Dealers website
the
take
one-half
approximately
WebLeads
opportunity
The
additional
Email Manager
emails
who
consumers
to
submission
Lead Lead
of
Leads
submitted
Call provides
phone
live
call
Our
display
This
segments
allows
Manufacturers
We
strategies
of
the
consumers
following
the Dealer
to
relevant
Lead
the Dealer
that
ensure
to
formats
feature
programs
consumers
makes
their
consumers
direct
Company
once
to
value
as
Data
highly
sites
follow
the
contacts
up
After
submission
to
for
consumer
6%
of
in
our
customer
target
in-market
brand
in
believe
this
measured
the opportunity
advertising
in
revenues
from
our
have
Websites
and
rates
actions
from
generated
revenues
Advertising
our
including
2012
in
sites
to
can
evaluating
Company
our
our
mail
direct
or
of consumers
transfer
on
consumers
Manufacturers
placements
Manufacturers
by
conquest
consideration
offer Manufacturers
advertising
Manufacturer
to
and
selectively
either
and
Websites
retention
through
content
comprehensive
Company
our
our
transferred
are
Licensing
We
have
developed
or
internally
in
with
partnership
website
of
through
target
vehicle
metrics such
as click-through
performance
of the consumer
One hundred percent
page views
site
total
We
action
Manufacturers
the
to
regard
Websites
their
can
through
automotive
to
Websites
Through
significant
of
communication
Our Company
of
across
terms
is
one
researching
specific
information
most
Most
with
keep
specific
content
further
the
partner
and
deliver
cycle
in
Manufacturers
to
consumers
advertising
both
efforts
enables
that
process
Manufacturers
5%
for
their
are
they
advertisers
that
buyers
reach
to
fixed placement
marketers
is
on our Company
accounted
in
contextual
performance
the
assist
purchase
while
consumers
sell
Designed
websites
marketing
reach
advertising
marketing
their
within
respective
average
consumers
Manufacturer
during
Manufacturer
from above
benefitted
direct
their
Websites
performance
taken
to
and
models
and
Websites
Company
We
platform
shopping
automotive
in-market
to
to
automotive
prospective
our
reach
to
marketing
vehicle
use
SUVs
or
opportunities
direct
allow
marketing
marketers
sponsorship
have
also
of
audience
advertisers
mini-vans
as
often-extended
the
during
automotive
such
an
attract
way
primary
automotive
direct
Websites
Company
advertising
targeting
sell
intervals
Programs
Advertising
Lead
on behalf
provides
scheduled
on
manner
timely
offer
have
third
to
data
cookie
our data
direct
the
for
parties
various
to
advertising
advertising
add
to
targeters
and
optimization
the use of
that
pools
third
party
the
agencies
demanding
of
aggregated
use
license
advertising
our
audience
i.e
advertisers
We
our
offer
they
information
utilizing
and
We license
We also
sources
existing cookie
their
to
products
advertisers
to
insights
offline
targeting
advertisers
to
of
purposes
marketing
and
online
data
others
provide
to
targeters
Seasonality
Our
consumer
severe
with
buying trends
weather
events
volume
lower
where
volume
is
now
invention
Autobytel
logo
We
managing
destinations
service
registered
property
includes
in
highest
and
third
winter
Manufacturer
the spring
quarter
fall
the
in
and
years
by winter
followed
months
it
to
or threatened
months
quarter
recent
in
due
future
actual
programs
and summer third
However
quarter
fluctuate
may
quarter
months
fourth
and
incentive
second
first quarter
and
and
in
We
We
also
in
been
data
We
or issued
that
to
other
assure
our
secure
they
be
and
through
that
marks
to
with
on-line
and
will
on our proprietary
any
additional
by
us
and
and
the
has
shifted
to
quarter
first
enforceable
iControl
service
in litigation
States
iControl
marks
managing
by us
be
Trademark
by Autobytel
in litigation
routing
technology
registered
and
through
third
have
and
or additional
other
patent
and
Office
and
applied
for
or
for
more
additional
our proprietary
patents
our
highway
system
one
to
of
including
the global
them
with
parties
disclosure
method
We
services
and
confidentiality
with
to and
access
and
Leads and
by Autobytel
will
limit
shopping
accessory
into
enter
agreements
Patent
assets
property
We
and
products
trade secrets
content
intellectual
our
additionally
aftermarket
innovations
non-disclosure
United
for
our
provisions
Advisor
system
be
protect
to
and creative
software
contractual
Automotive
method
enforceable
to
rights
proprietary
related
patent
seek
and contractors
assure
will
We
Lifetime
patents
including
cannot
our
in
copyrights
kinds
service
related
patent applications
employees
systems and
that
and
laws
registered
issued
center
cannot
engine
order
have
of various
MyGarage Your
Autobytel.com
Lead
with
agreements
information
have
and
trademark
business
conduct
licenses
patents
and services
brands products
distribution
summer
rights
secret
assignment
proprietary
was
quarter
in
our
to
property
whom we
fourth
highest
intellectual
trade
copyright
volume
past
quarter
related
intellectual
the
fall
vehicle
conditions
the
in
Property
Our
trademarks
economic
changing
fluctuated
have
results
operating
Historically
in
tntellectual
and
quarterly revenue
issued
Lead
or
if
In
method
consumers
to
of
other
these
Additional
of
purpose
entity
related
patents
We
that
may
We
Relay
previously
to
formed by ThinkVillage
be
by Lead
obtained
retained
50%
to
net
and
from
suppliers
closer
Patent
related
exchange
In
less
through
for
and
fees
legal
judgments or settlements
the patents
or
and
the automotive
in
to
patents
of pursuing
purpose
Relay
revenues
litigation
enforce
and
the
Lead
in
revenues
Relay from
license
to
rights
of
interest
networks
517
our
for
Corporation
computer
and
enforce
to
toward an
directed
is
consumers
bring
sought
which
other
transferred
interest
royalty
used
system
have
and
internet
and markets
industries
Factors
special
of Referral
expenses
26 2013 we
February
received
We
14 2019
January
licensing
related
we
patents
and operating
expenses
On
licenses
monetization
transfer
on
expires
the
over
communication
the
517 Patent
6282517
Lead
submitting
and
services
Numbers
Patent
and
forming
goods and
Patent
U.S
issued
for
Lead Relay
LLC
Relay
further
the
517
were
system
of
and negotiated
litigation
Lead
and
suppliers
The
together
2001 we
August
innovative
information
Annual
this
related
risks
certain
regarding
on Form
Report
intellectual
our
to
included
is
property
Part
in
1A Risk
Item
10-K
Competition
In
the
conditions
industry
with
some
the used
trend
vehicles
direct
We
consumers
continue
applicable
is
still
and delivery
regulatory
be
to
In the advertising
related
and
companies
to
for
whether
with
in
several
from
their
advertising
referral
more Lead
control
direct
delivery
business
the
in
to
the
and
models
have
including
emerging
new and
emerging
under
own
similar to
ours
competed
only
activities
and
their
captive
brands
market
that
websites
in
we
their
Dealers
and
sale
per
have
consumer
take
will
pay
models
from Dealers
attention
garnered
models
revenue
acquisition
assets
their
pay
models
have
and
by changing
impacted
models
business
traffic
generating
U.S
be
Dealer
for
compete
to
traditionally
Manufacturers
Although these
these
that
websites
proprietary
continued
maintain
that
competitors
larger
we
marketplace
programs
companies
vehicles
their
emerging
Leads
of
and
Lead
own and
market
Leads
services
our core
increased
invest
strive
determined
or licensing
has
to
new and
observe
to
compete
that
and generate
consumers
to
it
as Dealers
to
respect
to
continue
major Manufacturers
the generation
to
relating
Dealers
continue
to
all
Additionally
continue
and competition
resources
market
vehicle
We
marketing
with
Competition
2012
in
greater
this
expect
Lead
automotive-related
customers
Manufacturer
hold
or
and
with
comply
requirements
we compete
marketplace
numerous
lifestyle
concentration
of
with
We
websites
compete
with
our
automotive
based websites
transaction
traditional
automotive
such as print
marketing channels
and television
radio
Customers
We
have
with
particularly
from these
derived
three customers
of the
total
and
We
party
are
built
with
In
Science
and Volvo
Volkswagen
19%
approximately
2012 Urban
million
of Audi
26%
of gross accounts
accounted
Applications
receivable
accounts
acting on behalf
or $2.0
Science
related
industry
Applications
of our
receivable
14% of
for
balances
Mercedes-
Infiniti
revenues
total
related
these
to
10%
and
revenues
total
31 2012
December
that
future
our
success
is
dependent
significantly
our
upon
to
ability
continue
to
deliver
high-
center
and
These
facilities
and suppression
on industry
System
the
improve
of
as
risk
Technology
reliable
levels
detection
31 2012
receivable
believe
performance
data
Toyota
customers and
December
accounts
Operations
highest
at
Subaru
three
credit
General
AutoNation
are
which
primarily
Leads
are
entail
investments
technology
as
redundant
to
systems
we
intended
prevent
processed
to
and
of sophisticated
the implementation
enhancements
in
security
include
infrastructure
power
unauthorized
network
redundant
Our network
access
connectivity
and computer
fire
systems
technology
enhancements
speed
centers
and
systems
standard
in
data
believe
increased
accommodate
new
and
new
introduce
and
technology
traffic
enhanced
system
across
our
products
processes
We
Websites
Company
and
services
continue
plan
to
and
commerce
System
make
to
appropriate
Government Regulation
We
internet
practices
are subject
including
federal
advertising
to
laws
and
contests
and
state
regulations
laws
and
sweepstakes
generally
regulations
and
applicable
governing
promotions
and
to
data
content
providers
security
of
advertising
and privacy
regulation
For
unfair
additional
and
over
deceptive
important
acts
the
and
information
related
government
to
of
regulation
automobiles
our
set
business
forth
IARisk
Item
and
the marketing
to
including
Part
in
of
sale
on Form 10-K
Employees
As
IA
Item
addition
the following
The
condition
us or
and
None
employees
Report
Except
for fiscal
profitable
of our
by labor unions
are represented
employees
potential
may
the discussion
of
facing
and uncertainties
risks
and adversely
our
affect
Statements
Forward-Looking
and 2012
2011
unable
had
have
we
sustain
to
years
of
deficit
Part II
immediately
Item
on Form
Report
and
financial
known
not currently
of operations
of this
Part
results
business
preceding
of net annual
history
in
profitability
in
by companies
and
the
We may
losses
and we again
future
markets
services
be
such
We
industry
net annual
experienced
not
able
of the risks
light
evolving
rapidly
marketing
We may
in
considered
we have
2012
million
$280
must be
the automotive
in
by companies
also materially
of
Annual
of operations
results
business
Additional
section
in this
be
not
losses
our
December
31
experience
viable
profitability
generally
immaterial
of Operations
our
affect
us
Resources
Capital
Results
adversely
risks
are
financially
fiscal
future
encountered
If we
accumulated
an
for
also
and
2003 2004
future
for
Except
we had
be
to
and
materially
and
Liquidity
Condition
10-K
years
may not be
business
See
on Form
in the
below
the
in
of Financial
may
factors
deem
currently
Annual
discussed
factors
described
condition
financial
2012
122
and Analysis
additional
risks
we
that
the
to
Discussion
Managements
to
we had
Risk Factors
In
10-K
2013
25
of February
sustain
to
uncertainties
as the market
believe
that
and
losses
and
expenses
for
our
frequently
and
commerce
internet
and
the future
difficulties
specifically
we must among
sustain profitability
to
as of
in
profitability
other
things
Increase
Our
to
factors
Our
programs
include
that
90%
are
retention
focused
also
effective
to
Dealers
and
and
on
terms
in
Leads we
to
year with
new
due
revenues
business
results
to
does
We
Dealer
to
with
Dealer
is
relevant
and
automotive
have
quality
Manufacturer
Lead
referral
financial
greater
our pricing
and
or cost
and adversely
to
and
could
our
sales
by
financial
increased
to
content
number
more
2012 we
at
we
failure
acquisition
We
to
be
able
do
so
2011
to
we
receive
prevent
Dealer
could
materially
our
If
cost-
with
relationships
the
the overall
profitable
increased
year-end
by maintaining
and
that
are very
impacted
If
traffic
to
our
our
our websites
visibility
customers
third
parties
by providing
of our brands
of Non-Internally-Generated
similar
we
to
by increasing
acquisition
we have
Leads
quality
consumer
businesses
is
of high
acquiring
for
Leads
our
the
by increasing
our Dealer
focus
to
interrelated
increasing
continued
in
result
For
of Dealers
maintaining
that
we
Manufacturers
of our Internally-Generated
Leads
Leads and are more
Internally-Generated
to
Dealers
revenues
and
participating
mix of
on
dependent
number
were
attrition
Leads
of
to
sold
by
attrition
and
offset
to
affect
adversely
the
our
condition
and
acquire
to
ability
percentage
of our
number
in
is
Manufacturers
higher
the
means and
customers
than
our
including
and Manufacturers
by Dealers
Leads
retaining Dealers
and
more
any assurances
other
and
are intended
the
loss
while
consumers
for
deliver
to
fees paid
of Vehicle
customers In 2012
support
the
Lead
sales
Dealers
our
purchase
compared
increase
to
to
strategy
Leads and
Leads and
ability
resources
impacted
we
provide
attrition
provide
on our
dependent
where
or Manufacturers
number of Internally-Generated
Leads
sell
not mitigate
cannot
of operations
ability
we
more Dealers
focus
decrease
lost
Our
8%
sales
attracting
individual
to
that
in
supply
other Dealers
to
would
revenues
of cost
the
sales
increasing
changes
from
by
Dealers which
revenue
and
services
manner
on
from Vehicle
revenues
revenues
sell
Leads
These
our
Lead
dealerships
higher
support
both
ended
occur
on
strategies
advertising
disciplined
dependent
is
revenues
increase
to
number of Internally-Generated
and
of our
Vehicle
increasing
in
our customers
to
ability
Lead revenues
Vehicle
more than
derive
Lead
our
our expenses
manage
We
in
increase
to
ability
provide
derived
revenues
Continue
to
ours
Several
lose customers
business
results
of
or quality
these
Lead
of operations
is
dependent
Originating
secure
to
supply
and
financial
to
easy
We
companies
are
volume
increasing
larger
to
the
Internally-Generated
consumers
Leads with
competitors
and
on
than
use websites
compete
us
and
our competitors
condition
will
be
for
maintain
that
may
or
if
materially
Our
ability
webs
ites
We
these
increase
to
decline
additional
adverse
agreements
agreements
with
have
these
on
Our
dependent
our
with
margins
profitable
transaction
based
numerous
may
be
user
experience
able
to
and
add
our
automotive-related
Our
of
results
and
sites
their
and
and
and
our
replacing
which
decline
monetize
could
to
at
portals
and
nature
new
compelling
we may
declines
in
and
entry
is
traffic
internet
automotive
primarily
barriers
revenues
that
do not provide
traffic
in particular
conditions
affected
are
automotive
for
is
by minimal
our websites
condition
financial
of
competitors
differentiated
lose relevance
to
our
buys from us
advertising
market
the
If
existing
maintain
to
advertising
and
Websites
offerings
that
content
our website
if
market conditions
operations
industry
low costs
at relatively
and
with
able
would
to
of our advertising
capable
increase
thereby
with
compete
characterized
is
and
Company
our
to
be
to
condition
financial
advertisers
websites
websites
business
eliminate
with
not
relationships
any of
material
revisions
number
revenues
advertising
of
failure
any significant
which
could
have
We may
cause
The termination
negotiate
our
to
traffic
or
and
periods
comparable
our
and
traffic
acquire
competing
to
without
do so
periodically
future
in
alternative
cannot
facing
verticals
services
time
find
relationships
We
condition
rates
decline
to
consumer
revenues
advertising
revenues
revenues
of operations
and
advertising
competitive
the automotive
we
If
Our consumer
advertisers
Our business
us
in
increase
to
ability
of our advertising
all
advertising
any
or
our
reductions
financial
at
terms
results
to
our
advertising
terminated
to
us
with
and
our
consumers
attract
by general economic
are afftcted
in
be
substantially
cause
favorable
satisfactory
websites
launch
major advertisers
conditions
to
sites
lifestyle
decrease
on
maintain
ability
would
on our business
effect
to
ability
on
could
may
terms
adverse
for
advertising
on
dependent
largely
of operations
results
revisions
Manufacturers
revenues
material
of
level
advertising
Manufacturers
with
relationship
advertising
of
sources
is
Manufacturers
the
in
on our business
effect
and
We
on automotive
depend
relationships
develop
revenues
advertising
automotive industry
economic
by general
services
marketing
in the
and
but
including
market factors
not limited
to the
following
The adverse
effect
Availability
of and
in
Disruption
The impact
Increases
of gasoline
or decreases
customers
in
in
Volatility
effect
advertising
Concentration
results
of credit
of operations
Financial
equivalents
in
Generally
these
Dealers
receivable
balances
and
receivables
economic
customers
required
and
we
are
environment
that
are
retail
engine
to
potentially
Dealers
overall during
or
the
in
lifetime
their
of
result
as
number of Manufacturers
in
their
marketing
and allocations
budgets
on our Lead
and methodologies
algorithms
an
significant
with
subject
We
held
upon
by
have
allowance
negatively
with
their
for
affects
and
banks
cash
General
bad
and
and website
generation
and
adversdy
the
services
financial
additional
results
amount
risk
affect
Volkswagen
Urban
our business
Science
potential
credit
of
condition
estimated
collateral
our
losses
or
If
customers
allowances
of operations
is
financial
for
19%
there
or an
condition
is
or $2.0
to
decline
and
could
in
customer
be
to
of
approximately
million of
our
support
increase
billed
accounts
behalf
on
acting
cash
financial
deposits
related
During 2012
required
bad debts
such
for
industry
Applications
two
from fees
derived
and Volvo
and
cash
with
provided
our automotive
31 2012 No
10
insurance
of
primarily
maintained
are primarily
with
and
for
of
receivable
credit
consist
risk
are primarily
Toyota
from these
debts
credit
Motors
December
at
Subaru
the
Accounts
of
of
equivalents
exceed
concentration
were derived
them
concentrations
to
demand
AutoNation
from
us
Cash
receivable
redeemed
be
revenues
impact
vehicles
vehicles
and others
dissatisfied
number of
Deposits
receivable
that
for
due
Manufacturers
maintain
fewer
purchasing
condition
States
particularly
receivable
be
will
on demand
search
accounts
may
automobiles
base
risks
that
and
in
and
risk
of
and margins
activities
United
deposits
automotive
of changes
purchases
vehicles
by Manufacturers
spending
instruments
the
the
customer
our
purchasers
longer warranties
prices
in
and financial
investments
institutions
and
vehicle
for
financing
inventory
consumers
that
for
for
incentives
quality vehicles
better
rates
the available
The expectation
unemployment
interest
and purchase
Pricing
The
of high
in
the
the general
number
credits
material
gross
accounts
may
of
be
in the application
exists
Uncertainly
of various
to
to
licensing
and
laws
could increase
administrative
costs
or
and
materially
adversely
to
and
liabilities
monetary
New
our business
to
regulations
or regulations
applicable
limitations
our business
affect
laws
to
apply
results
us
and
practices
and financial
of operations
condition
We
our
to
business
or
be
regulations
obtain
laws
future
and
could
e-commerce
and
We may
within
an
manner
and
related
of
of
areas
any
do
or
and
if
operations
or
implement costly
to
may
could
state
Dealers
or
elect
be
compliance
business
in
we
if
in
operations
apply
All
states
comprehensively
and
in
we
our business
that
state
determine
state
that
We
affected
adversely
to
resulting
on us or include
programs
the alternative
In
and
materially
to
marketing
terminate
to
their
conduct
requirements
specific
our
modify
to
required
we
our customers
impose
or interpreted
changed
Most
not
of these
and
laws
broker
licensing
in
given
and
comply
applicable
we
may
or introduce
operate
we may need
states
those
models
to
manner
believe
the
that
each
In
us
in
case
have
identified
could
be
costly
obtain
to
with
this
states
require
could
be
us
be
regulatory
third
We
licensed
incur
to
required
comply
to
fines
or other penalties
Reform
powers
finance
and
which
companies
Insurance
referred
to
applications
third
for
or regulations
Consumer
could
lead
to
and other
parties
do
not
relating
or other
services
state
In
some
with
compliance
we
laws
regulatory
obtain
to
that
have
As we
are
licenses
required
state
are overly
elect
or
our
to
not
marketing
new
introduce
services
If
requirements
deemed
or
requirements
modified
and regulatory
or brokers
programs
Dealer
requirements
in
programs
local
Dealers
elect
regulatory
states
regulations
licensing
motor vehicle
to
to
are
Leads
We
receive
marketing
or be
financial
We
require
us
to
applicable
any
us or
in
fees
receive
from
financial
third
unable
comply
to
with
and
for
states
We
lenders
party
institutions
websites
our
through
to
financing
Dealers
laws
allows
acquire
in
service
this
that
also
connection
In
the event
we
or regulationsor
obtain
current
discontinue
Act established
of our Finance
connection
provide
vehicle
broker required
license and comply
with
any financial
be licensed and we are unable
to do so or we
are otherwise unable
to
to
by changes
to
we
for
we may be
expenses
compelled
in
operations
new consumer
Lead
or the introduction
operations
business
those
financial
directly
or
states
In
protection
of
services
addition
the
bureau
with
through
indirectly
new
we
could
Dodd-Frank
broad
regulation
be
Wall
regulatory
of automotive
institutions
provide
quotes
completed
and
do
nor
broker
states
required
regulation
receive
submit
demand
fees
We
Laws
Credit
and
financial
Protection
Broker Laws
quotes
our
additional
we may
program
transactions
services
motor vehicle
state
or other
the licensing
licensing
marketing
that
that
lease
marketing
and
sales
advertising
significant
laws
Street
with
in
our
vehicle
and
purchase
that
believe
and
and
program
In the event
requirements
if
not
that
services
or particular
programs
regarding
associated
parties
as
with
subject
uncertainty
information
activity
to
services
we do
determine
However
vehicle
vehicle
regulate
brokers
states
do not believe
therefore
we
If
some
traditional
only
We
particular marketing
and Consumer
finance
marketing
most states
operations
undermines
that
Leads from
finance-related
and
states
requirements
services
address
programs
requirements
costs
Dealers
or other requirements
Broker
Financial
consumers
to
reduce
or other regulatory
in
or
our
as
most
in
marketing
additional
fines penalties
states
us
us
terminate
to
to
to
regulatory
elect
incur
to
licensing
subject
apply
particular
or pricing
programs
in
activity
for
specifically
such
Laws
Advertising
requirements
believe
programs
brokerage
are applicable
with
burdensome
referral
requirements
state
we
regulations
Lead
automobile
as
licensure
strict
including
internet-based
qualify
to
us
require
of
results
business
the popularity
future
internet
us
for
to
where
in states
consumers
to
condition
financial
regulation
be
may
burdensome
which
practices
requirements
attractiveness
decrease
may
that
on
to
may
expenditures
no assurances
be
us
require
impose requirements
our
affect
adversely
adoption
to
may
laws
liability
business
regulatory
are overly
and
future
subjected
additional
can
not
will
or regulations
business
present
There
of operations
results
laws
These
expense
our
us
impact
or regulations
and regulations
laws
and regulations
laws
adversely
may be
operations
these
annual
or regulations
potential
scheme we
programs
operations
government
to
states
laws
our
restrict
operate
requirements
results
business
below
the
our future
of existing
of additional
regulatory
may undermine
that
to
the event
In
and
initial
with
and
of existing laws
Our
authorities
of various
materially
or applications
growth of e-commerce
the
the application
to
or regulations
and compliance
significant
reducing
our customers
considered
industry-specific
licensing
our
be
laws
regulatory
or expansions
marketing
us and/or
action
regulatory
potentially
adoption
internet
or expose
or
and regulations
as
uncertainty
interpretations
judicial
laws
interpretations
is
existing
different
by
substantially impair
The
there
that
and possibly
thereby
condition
financial
procedures
in
or
which
in
believe
by
or rulings
of various
overhead
that
not
undeterminable
an
at
or regulations
commerce
of
actions
do
affected
interpretation
licenses
increase
we
significantly
or
or
climate
regulatory
Although
could
expansion
in
operate
business
for
links
on our websites
insurance
on the respective
and extended
insurance
11
and
referrals
warranty
carriers
from
call
coverage
or other
third
centers enabling
from such
party
third
consumers
parties
websites and
all
to
be
All online
applications
for
obtained
quotes
marketing
could
be
be
to
Because
or
new
currently
estimate
or
rules
2011
and
Our
laws
privacy
business
our
be
could
for
and
federal
found
the extent
SPAM
not
to
may
Data privacy
sharing
and
website
own
failure
perceived
the collection
confidence
We
affiliates
by us
use
in
other
or
to
to
predict
registrations
and materially
or
allow
that
internet
risks
Security
with
other
confidential
internet
online
and
to
identity
or
we
if
we
to
result
our
upon
new
or audits
tax
We
affected
by
and
expense
were audited
December
the period
the
our
commerce
internet
additional
states
available
reviews
of
business
based
to
internet
including
becomes
apply
in
adversely
for
tax
of
number of
in
or
state
local
commerce
resolution
in
or regulations
result
tax contingencies
rules
and
the
and
security
or other
internet
each
In
have
data
to
relating
our
case
2003
in
through
New
privacy
online
services
of these
some
data
could
that
of
results
business
below
identified
of
and
new
of such
affect
operations
risks
we
that
theft
law regulating
or actions
regulations
and
affiliates
the collection
with
consumer
against
or other
loss
could
users
concerning
results
restrictions
data
Lead
or
and
privacy
that
may
of operations
and
financial
relating
the possible
advertisers
could
requirements
impose
revenues
including
of
regulations
or others
matters
privacy-related
to
on
our
personal
Commission
self-
industry
failure
Further
or
in
condition
Not
of
advertising
issues
decrease
related
in
data
Track
list
to
our user
that
Proposals
and
to
of user
loss
and
referral
use
Do
of
in
result
retention
result
and
the collection
implementation
and
Trade
or
post
or industry
requirements
in
laws
entities
retention
use
we have and
Federal
policies
by governmental
our reputation
of user data
disclosure
privacy
to
to
CAN
than
restrictive
the collection
addition
protection-related
us
or regulations
our
our posted
laws
state
addition
damage
or
govern
In
and
use
more
or penalties
and
applicable
they
fines
In
imposes
of commercial emails
the sending
rules
laws
information
ultimately
requirements
monetary
CAN-SPAM
emails
or conditions
manner
cost-effective
in
Act of 2003
commercial
sending
These
as
information
that
would
tracking
with
and
in
consumers
to
Marketing
regulate
spam
regulations
known
commonly
advertisers
or
privacy
include
use
online
and scams
information
result
comply
to
legislation
considered
internet
may impose
concerning
whether
adopted
and
and
rules
laws
email
with
Various
personal
federal
Californias
may
by us
state
and
unsolicited
Pornography
our policies
brands
if
of
associated
personal
consumer
As
authorities
internet
for
and
accrued
costs
We
state
to
ability
including
proceedings
whether
being
opt-out
fraud
in
tax laws
or the acceptance
more information
as
statutes
regarding
affected
failure
and adversely
the tracking
users
us and
to
audit
connection
in
practices
with
our
or
adopted
are currently
through
our
regulations
or security
will
obtained
in
comply
our business
have
affect
receive
federal
result
sharing
cannot
from
licensed
or regulations
additional
to
costs
Tax
accrue
be materially and
or prohibit
CAN-SPAM
by
and
policies
us damage
be
restrict
emails
and
we
that
principles could
regulatory
our
engaged
for sales
us
or marketing
ultimately paid
regulations
Various
and
of Non-Solicited
failure or perceived
or orders
requirements
be
to
states
subject
affected
time
we have
adopted
adversely
rules or regulations
rules
laws
privacy
Any
information
laws
or federal
state
may
increase
over
existing
compliance
higher
and
requirements
laws
of data
security
our
adversely
be preempted
of these
Violation
be
may
regulations
of commercial
the sending
regulating
and
rules
burdensome
often
and
rules
incur
to
materially
the Assault
Controlling
and
complex
us
internet advertising
rules or regulations
laws
us
us
laws
Anti-spam
communications
be
laws
regulations
or cause
could
costly
various
to
and
rules
flexibility
condition
financial
and
ours
and Finance
of the states
results
those
any
applicable
with
receive
premiums
require
be
to
We
party
Risks
subject
is
of Taxation
activities
comply
local
usage
We
amounts
could
condition
financial
Department
to
their
The
new
internet
update
interpret
ours
to
in
companies
different
the
of
we
operations
of
services
similar
businesses
to
and adversely
treatment
paid which
be
similar
and
our
for
unable
authorities
growth of
materially
tax
or taxing
awaiting
are
be
authorities
State
Privacy
business
and
security
The
York
the
marketing
materially
28 2011 and we
Security
believe
New
could
to
of operations
results
the
these
that
third
receive
not
costs
by governmental
demand
the
expected
businesses
be
could
by the
February
and
adopted
marketing
authorities
business
limit
are
internet
including
Data
internet
result in increased
do
were determined
laws
are otherwise
discontinue
to
compelled
decrease
re-evaluating
to
do not believe
licensing
so or we
may
could
condition
legislation
taxing
and
We
or other
carrier
We
activity
decrease
turn
financial
taxes
sales
or be
by the insurance
marketing
insurance
do
to
or regulations
and
taxes
in
and
reviewing
of
application
June
could
of operations
results
our
income
this
our services
state
any
dependent
is
of existing laws
or
which
commerce
are
use
sales
if
are unable
of internet commerce
our business
interpretations
federal
we
with
for
fees
or other penalties
fines
the taxation
in
However
and
licensed
to
subject
Changes
laws
insurance
state
are required
consumers
conducted
are
referrals
connection
in
participants
center
call
through
from
fees
Leads
significant
over
public
user privacy
and
collection
issue
for
Concerns
networks
issues
referral
online
have
12
been
over
significant
and
advertising
businesses
like
ours
the
secure
of transactions
the security
barriers
e-commerce
is
to
growth
in
risks
associated
transmission
conducted
consumer
use
of
on
the
of
the
online
internet
be
Advances
in
electronic
to
change
anticipate
these
techniques
disclosure
of
to
ability
and
attract
experience
damage
our
consumer
inform
of
of any
individuals
security
to
or
we
over
online
incur
breaches
that
and
result
their
We
are insured
for
would
sufficient
be
business
information
being
incur
significant
costs
Internet
fraud
amounts
substantial
The
in
companies
are expected
addresses
to
condition
not
be
in
adversely
worms
and
our
could
of
threat
few
the past
over
increasing
success
the
against
prevalence
also materially
risks
we
which
for
assurances
and have
are insured
the coverage
that
given
services
to
we
extended
Our
connections
communication
revenues
limits
varied
or
keep
to
enhance
and
standards
technologies
with
pace
in
the near
we
services
fact
are unable
to
new
develop
significant
if
we
our business
or
are required
to
technology
and
The
basis
and business
other
proprietary
invest
of operations
results
to
adapt
affected
technologies
technical
websites
our
and
many
that
and adversely
materially
entails
adapting
mobile
and
user
including
on
In addition
advances
technological
be
in
changes
practices
standards
industry
render
future
could
technology
or
change
nature of the
our existing
effectively
in
invest
to
required
technologies
could
that
of our prospective
emerging
to
services
to
new
embodying
financial condition
needs
industry
new
using
and
are
impacted
by rapid technological
introductions
and
If we
advances
with
keep pace
to
decrease
will
be adversely
continue
to
ability
and
emerging
in
and
rely
network
on
failures
to
Any
Such
providers
that
systems needs
which
systems
disruption
of
the
attacks
our
and
to
substantial
and
financial
and
We
on
rely
disaster
third
from
services
they
13
third
provide
all
recovery
services
environmental
received
for
party
us
from unauthorized
providers
and
power
provider
or
any
reputation
for
to
We
failure
for
have
our
little
of these
as
well
as
We
technology
internet
platforms
no control
party
our
computer
on our behalf
technology
or
and
of delays or
and secondary
third
fire
harm
to
our primary
support
and
In the event
and services
to
systems
tampering
of our services
planning
due
interruptions
are vulnerable
platforms
party
our
could
systems
of redundant
failure
damage
technology
capacity
and
outages
attacks
could
similar disruptions
perform
planning
terrorist
interruptions
site
to
susceptible
information
multiple
provides
is
are
cyber
and
sabotage
do not have
party
systems
outages
measures
break-ins
the extent
service
security
failures
security
We
third
or security
systems and
communications
similar events
attacks
co-location
providers
technology
platforms communication
systems or security
our business results of operations or financial condition
and electronic
physical
denial-of-service
to
If we are unable
technology
will
products
telecommunications
our
Despite
platform communication
party
and
technology
loss
plans
results
are vulnerable
third
been
and
companies
Because
protect
harm
also
federal
law requires
in
or actual
us could
of state
stolen
to
decline
or
Alleged
with
If
and
publicity
our information
in
affrct
power
recovery
disruptions
our
by consumers
or experience
are characterized
of operations
sophisticated
order
or failures
and
coordinated
in
product
internet
on our
part
successful
Our information
viruses
incur
by an
suffer
hood earthquake
operating
in
requirements
technology
Interruptions
disaster
new
results
advances
customer
could
materially
and
to
in
depend
will
markets
service
introduce
the increasingly
We may
amounts
no
and our
services
commerce
our business
technological
development
technology
those
are
and practices
emergence of new industry standards
market characteristics
are intensified
by the emerging
to
technologies
Our performance
risks
for
the
These
obsolete
respond
Even
there
new
frequent
advances
with
our
using
technology
and
applications
changing
stop
and electronic
internet
technology
that
may
requirements
internet
risks
policies
we might
or losses
liabilities
costs
on keeping pace
dependent
is
consumers
technology
customer
of the foregoing
of the applicable
affected
California
in
to
network
our
websites
our
the multitude
has
or
unable
unauthorized
adverse
liability
associate
consumers
actual
of
service
Risks
Technology
Our
conditions
all
cover
to
some
and
specifically
be
may
suffered
adversely
problems
by
should
to increase
they continue
years and fraudulent on-line transactions and scams
and adversely affect the customer experience
and therefore our business
results
operating
coverage
breaches
use
to
be
For example
personal
we may
breaches
those
breach
to
complying with
information
e-commerce
caused
alleviate
in
and
exposed
could
whom
in
or
perceived
through
reluctance
to
our business
significant costs
of personal
may
rise
gives
be
may
we
target
may
systems
security
developments
from damages
arising
litigation
or competitors
partners
could
services
or
the internet
disclosure
security
of
theft
identity
of our business
In addition
the unauthorized
regarding
that
whether
visitors
using
extent
claims
to
us
Any
could
otherwise
or subject
after
the
one
and brands
laws
foreign
misuse
website
and
measures
preventative
regarding
or
or other
launched
computer
harms
disruptive
unauthorized
until
our
measures
security
other
cryptography
obtain
to
recognized
adequate
financial transactions
of the network
breaches
to
in
confidence
our reputation
theft
To
reputation
or
audiences
identity
are not
information
theft
our
often
implement
to
identifiable
retain
consumers
to
or
employee
party
and
of
field
used
the techniques
and
viruses
the
in
of
implementation
break-ins
discoveries
Because
frequently
personally
unauthorized
new
our
Despite
computer
physical
measures
systems
sabotage
e-commerce
or
capabilities
computer
our security
compromise
and
advertising
susceptible
over
these
providers
to
increases
for
effectively plan
of these
of the applicable
in
Even
events
those
for
there
policies
could
capacity
no
are
in
cause
turn
which
for
events
assurances
we
the
that
given
and have
are insured
some
for
insured
are
coverage
would
limits
coverage
We
our services
in
delays or disruptions
be
sufficient
cover
to
we
losses
all
We
are
exposed
We
Overseas
associated
risks
to
is
subject
political
social
exposure
to
and economic
of overseas
continuation
in
difficulties
Market
Securities
The
technology
stocks
Capital
and
the
stock
ability
have
that
stock
likely
an
market
and our
to
be
market
and could
be
deliveries
the
Dealers
to
with
Low
new
of
by reason
analyst
of
of
The impact
in
may
stock
companies
or
wars
publicly
to
stock
by
actions
securities
common
The
stock
is
of
which
with
Lead
they
to
their
float
hold
that
our shares
for
accelerated
on
holdings
funds
particular
commerce
time schedules
stock
our
may
of
traded
The
and automotive
estimates
industries
or automotive
industry
stock and
NASDAQ
of
prices
energy
prices
the
of
many
companies
In addition
international
market price
litigation
14
of those
have
Market
securities
stock
securities
This
Capital
equity
performance
affect
companys
securities
meet such
to
adversely
failure
the technology
common
of our
the operating
rates
or our
analysts
affecting
conditions
the market
to
price
sell
by Manufacturers
electronic
standards
in
interest
the market
with
our
cannot
decline
Dealers volume
low public
in
resulting
liquidate investment
market repurchases
the
affect
stock
of our
including
affected
recessions
in
of
we
but
not
as
of participating
Websites
Company
such
will
results
number
as the
common
market price
factors
ABTL
stock
affrcted
offerings
common
the internet
in
or disproportionate
military actions
volatility
or service
our
estimates
open
particularly
adversely
as
to
response
may be adversely
symbol
of our
the price
case
of the Company
markets and
such
The
decision
their
the
been unrelated
price
fluctuations
in
the
under
market price
to
market or economic
have
Market
the
that
or
which
in
compensation
of the
visitors
General
that
Capital
operating
Further
NASDAQ
number of
product
coverage
and trends
Conditions
efficient
stock
requirements
equity-based
and
orderly
such
developments
in financial
Changes
capital
significant
in
our common
listing
issue
metrics
of holdings
Competitive
against
requirements
market prices
since
performance
and
including
Limited
of
regulatory
volumes
trading
Decisions
periods
in
changes
property
security
innovations
Concentration
revolutions
intellectual
Company Websites
Technological
conditions
and unexpected
especially
wide fluctuations
to
variations
and anticipated
volatile
continued
sustained
subject
Historical
Announcements
affected
to
respect
international operations
The
experiences
be
or anticipated
interact
and
contractors
flows
satisfy
less
on
listed
will
periodically
volatile
Actual
often
with
particularly
attacks
terrorist
restrictions
operating
to
may be
currently
is
to
able
raise additional
our stock
sell
trading
general
not
are
to
ability
stock
active
highly
fluctuations
of
of cash
may be
stock
unrelated
been
we
if
buy and
to
in
overseas
and
tariffs
common
often
Market
Our common
assure
to
to
Risks
NASDAQ
common
standards
legal
risk
and
controls
and managing
staffing
public
and
taxation
in
changes
and the
and blocking
of business
nationalization
and
practices
conflicts
of governmental
the imposition
of our systems
some
for
including
instability
business
different
risks
overseas
development
maintenance
and
development
inherent
many
to
of software
outsourcing
software
outsource
currently
outsourcing
with
securities
could
of our
result
These
general
currency
class
experienced
stock
litigation
substantial
market
and
In
costs and
have
have
and market
acts
the past
has often
volume
and
factors
political
terrorist
fluctuations
action
in
broad
economic
common
price
companies
technology
been
political
following
instituted
diversion
of
managements
and resources
attention
to
Board or
systems
are generally
adverse
securities
issue
The
and
Associated
intellectual
that
expect
different
we
parties
proprietary
Policing
services
on
We
for
liability
information
made
for
third
could
divert
enter
negligence
those
make
websites
claims
It
against
royalty
We
services
information
personally
also enter
into
direct
data
identifiable
Neither
common
stock
1933
adversely
these
it
have
could
Act of
and could
of
if
not
is
material
the preemption
on
rely
quotation
Market
stock
Securities
of
state
covered
for
our
impact
ability
for
requirements
listing
the
us
in
for
parties
our
privacy
other
among
if
that
things
any
in
delays
be
to
the case
in
enforceable
and
property
in
and
substantial
services
do
result
in
could
may
willful
be
subject
to
infringements
could significantly
that
litigation
exposed
review
or
content
such
or other
Any
information
new
injury
links
wrongful actions
claims
might
and
result
for
party
example
unfair
of
websites
to
by such
in
these
operated
third
errors
existing services
or upgrading
parties
third
or copying
contains
could
third
to
of contract
breach
content
providing
by
respect
claims
on our websites
provided
releasing
These
internet
with
liability
personal
indirectly
the
over
on the nature
based
directly
to
services
infringement
infringement
on
us
we
by us
our products
result
as
regard
intellectual
unsuccessful
successful
from or transmitted
could
theories
by
party
reliance
in
cause
resources
third
trebled
be
when
our products
if
rights
condition
legal
that
that
even
we
that
could
and
establishing
our
our
protect
proprietary
will
purpose
available
or protect
are not
be
may
or vehicle
links
we
If
that
successful
if
no assurances
could subject
We
parties
or trademark
copyright
have
that
not be
enforce
even
or obtained
or other
for
necessary
which
or trademark
copyright
into
may
in
our
information
use
to
in
While
of our proprietary
essential
no assurance
litigation
attention
damages
websites
and
of products
measures
protect
have
to
also
and financial
third
We
to
Claims of infringement
management
by
losses incurred
and
We
efforts
obtain
to
protection
this
patent
for
secret
becomes
retrieved
our
We
party
and technology
development
more
are
affect
third
to
functionality
systems
our
protect
industries
subject
and technical
continued
to
adversely
technology
the
our proprietary
entered
agreements
and
grows
Despite
or
and
increasingly
agreements
difficult
is
and
be
maintenance
services
rights
and monetary
through
liable
parties
consumers
costly
litigation
or require
us
to
agreements
agreements
links
the
and
internet
of
brands
attention
third
segment
website
reliable
actions
internet
may
of our personnel
skills
the
the
in
enforcement
could materially
rights
property
depends upon
and trade
of operations
also possible
is
or licensing
through
and
be
attention
managements
into
to
able
confidentiality
or invalidity
of
rights
relief
might assert
should
law
if litigation
addition
invasion
advertising
claims
we
parties
be
services
industry
of our
copyright
information
over
defamation
These
materials
our
our
that
or
resources
for
accessible
false
competition
sold
and
aspects
by actions
may be
that
to
and
and creative
infringement
results
liability
products
In
of
of
affrcted
face
patent
injunctive
our business
could
raising
common
is
compete
to
strengthening
copy
property
diversion
and permanent
affrct
the
capital
intellectual
to
rights
in
ability
and management
resources
could be adversely
adversely
of
of
intellectual
and
costs
for
to
ability
of
and proprietary
property
and copyright
technology
mark
online
preliminary
through
of
claims
substantial
by
our
18
common
our
electronic
Market
against
the
eliminate
Section
costs
products
recognition
to
unauthorized
available
diversion
Our
and
attempt
made
and
also
the
in
OTC
on the
quoted
These
Capital
invest
to
of
Delisting
continue
will
Capital
software
patent
position
may
misappropriation
not infringe
Company
of competitors
name
brand
defend
costs
NASDAQ
reluctant
be
would
stock
Company
the
employees
the technical
to
or
be
exchange
higher
common
our
The
than
may
afforded
in
property
and
that
are
rights
broad
less
would
of our intellectual
overlaps
trademark service
Effective
result
Company
number
believe
leadership
unauthorized
prevent
and
requirements
intellectual
as the
technology
maintaining
by
and
various
satisfy
In the event
investors
stock
stock
NASDAQ
technologies
segments
rights
and
systems
and
NASDAQ
LLC
must
Company
the
Market
Capital
that
expect
Group
and
efficient
the
we
claims
regarding
claims
proprietary
be
of operations
results
Litigation
internet
industry
Markets
or another
that
given
rely
and
on our business
effect
Market
Stock
results
infringement
less
could
to
on The
stock
and
Litigation
We
adverse
NASDAQ
on The
NASDAQ
exchange
preemption
or infringement
properly
our business
will
material
requirements
OTC
common
our
can be
with
Misappropriation
we
have
listed
by The
Market
compensation
common
be
qualification
this
assurances
of our
listing
of
be
to
by
to
Capital
of
loss
equity-based
No
Risks
would
listing
stock
is
the price
on
registration
securities
to
considered
systems
NASDAQ
effect
continued
market maintained
quotation
on The
continue
to
established
these
satisfy
Bulletin
electronic
stock
requirements
listing
listed
which
condition
financial
to
form
information
or
of
with
from
other
our
Leads
and data
to
under
companies
websites
purchased
the
third
on
or
from
parties
15
which
our
third
and
any revenues
websites
party
not
is
websites
directly
to
that
shared
us
In
results
involving
These
addition
we
consumers
arrangements
acquire
who
may
or use
personal
submitted
expose
us
to
additional
federal
and
risks
legal
uncertainties
and
government regulation
or have direct
contact
of laws
and
rules
messaging
text
We
in
us
to
provided
regulations
time
could
meritorious
could
litigation
insurance
these
Our
be
in
provisions
to
party
us and
acquire
the price
that
delaying
or preventing
voting
for
rights
Our amended
preventing
changes
election
each
at
impose
various
actions
such
of
Company
at
the
upon
the acquisition
of 4.90%
all
Benefit
Tax
not
thereby
will
not be
tax
attributes
that
three
sale
person
is
Plan
directly
is
subject
together
the
to
the date
in
with
of
be
party
and
corporate
governance
difficult
it
provisions
for
third
could
limit
stock
the
rights
stock
with
and
including
powers
The
limit
203
of
the
in
manner
is
from attempting
to
owns
or
for
up
and bylaws
effect
corporate
to
stock
right
to
group
Plan
exercise
price
became
Section
own
control
Law
15%
of
us
with
an
203
or
an
to
deem
person
Plan and
the shares
acquiring
loss
that
Right
of the Right
Preservation
and
carryovers
In
general
the
statute
stockholder
other
and an interested
prohibits
for
unless the
stockholder
business combination
stockholder
or
triggered
Company
interested
interested
stock
be
of
price
authority
Benefit
Corporation
the
by any existing
4.90% or more of our
the exercise
of the
of
certain
in
acquisitions
acquires
times
Tax
will
Rights
the then
the
Stock
or
common
acquire
been
have
holder upon
its
Preferred
The
discretionary
interests
the interested
16
at
under
Company
the best
in
of
to
Right
or future
or
of two
exercise
Rights
person
or did
acquire
are
directors
to
Preservation
into
acquire
Person
General
the
benefit
of
of delaying
effect
of
of
those
to
certificate
entitles
Participating
exceptions
person
market value
Acquiring
For purposes
to
common
entitled
to
convert
certain
If
Each
Benefit
to
business combination
which
board
of the Company
Junior
will
stock
of Directors
Delaware
financial
associates
be
otherwise
in
the
stockholders
for
stock
Tax
the
subject
outstanding
availability
or
preserve
under
the beneficial
that
the
difficult
restated
of incorporation
certificate
stock
capital
Rights
and
will
an
more
of Series
share
time has
be
to
of the
senior
rights
and
may have
majority
of common
share
common
Board
our
not
which
and restated
it
amended
Our
than
less
make
adjusted
stock
the
at
from engaging
resulting
our
make
decrease
issue preferred
three classes
purchase
circumstances
the transaction
affiliates
third
to
of
the acquirer
in
could
of us
each
for
may
common
which
prescribed
all
for
that
provisions
us These
of
affect
adversely
to
could
common
could
liability
us
condition
relating
control
also
in
Our
of our insurance
excess
law contain
Plan
of our
in
is
not
and bylaws
to
us
into
could
rights
Rights
Board finds
Section
or
if
outcome
indemnif
to
adequate
financial
to
willing
acquire
amended
our
in
one-hundredth
4.90%
to
and
stockholders
because
which
price
indirectly
intended
corporation
approved
discourage
if
the
of control
Plan
authorizes
of
excess
or
or other transaction
who
could
in
the plan
after
to
allows
management
change
of
except
stock
by
insurance
an
arising
even
adverse
condition
financial
not be
Preservation
or could
divided
is
provisions
certain
in
holders
Rights
Delaware
years
combination
asset
the
are also
publicly-held
such
shares
common
our
stock
to
Benefit
stock
Preservation
likely
We
as
acquire
Rights
trigger
directors
our
five
one
and
rights
matters
legal
and
attention
may
operations
by
of
common
acquiring
of
parties
indemnification
any
property
or
litigation
from attempting
action
or
Preservation
rate
that
intellectual
and
operations
and
of incorporation
common
of
requirements
purchase
4.90%
of
or
number of shares
The
to
in
or other
of the Company
stock
stock
other
the
at
instead
capital
of
preservation
Tax
to
and other
us
not covered
results
of incorporation
In addition
sale
of $8.00
price
to
of
exposed
is
that
the price
party
vote
of
change
Benefit
Rights
other
commdn
Tax
our
dividend
circumstances
holders
asset
merger
Under
triggering
and
procedural
distributed as
or
meeting
third
unsolicited
stock
certificate
the board
that
the services
by these
regulations
assurance
and management
results
are
certificate
third
further
any
control
in
annual
as
we
benefit
plan
the holders
and restated
no
not related
against
of resources
liability
limit
preservation
to
without
also provides
incorporation
tax
us or
of the common
have
violations
and
laws
and
state
local
not provide
adequate
distribution
stock
filed
business
which
of
matters
legal
on our business
effect
discourage
be
change
of the holders
conmon
the
could
our
to
and restated
benefit
investors
some
available
assets
tax
our
We
will
available
diversion
imposition
acquiring
amended
of our
Provisions
and
from
third party
and
and bylaws
of incorporation
certflcate
discourage
Any
adverse
material
licensing
The actions
affect
adversely
and
or
litigation
potential claims
all
imposed
have
could
coverage
and
cover
security
sharing
we do
if
for
liability
and privacy
data
if
services
include
can
revenue
even
by other litigation
in
costs
to
parties
activities
in substantial
materially
may
that
third
affrcted
of our business
result
related
regarding
parties
of these
liabilities
marketing
to
not
may
liability
203
with
our agreements
of
voice
wireless
From
those
these
consumers
to
These
consumer
including
or
telephone
the
with
disputes
liabilities
potential
with
ourselves
including
includes
period
business
merger
stockholder
voting
stock
is
Section
If
our internal
controls
and
adversely
materially
Management
control
internal
financial
financial
and
December
31
Committee
31 2012
how
matter
be
will
well
we
that
assurance
Our
We
can
not
have
external
cash
could be
flow
results
weaknesses
all
remote
in
potential
in
our
control
internal
weaknesses
in
and
errors
of
as
the
by
control
is
material
that
over
financial
fraud because
misstatement
in
reporting
resulting
from
system no
of the control
of our
failure
system
and there
the past
of
as
reporting
any control
the objectives
that
financial
over
the future
control
internal
our
reasonable
issued
weakness
material
likelihood
accepted
reporting
Framework
of
reliability
generally
financial
over
Control-Integrated
COSO
with
or detected
prevented
material
Internal
more than
in
not prevent
weaknesses
in
the
regarding
accordance
control
internal
Our
financial reporting
over
assurance
in
purposes
of our
Commission
Treadway
not be
may
provide
had material
described
control
reasonable
provide
the effectiveness
that
will
controls
only
the
we had no
that
internal
have
will
and
of operations
internal
adequate
for
statements
criteria
of
to
designed
of
deficiencies
financial statements
designed
achieved
the
Organizations
determined
Management
December
of
used
of control
or interim
process
financial
assessment
its
management
or combination
of the annual
is
reporting
making
of Sponsoring
deficiency
results
condition
and maintaining
establishing
the preparation
In
2012
for
responsible
principles
our financial
fail
affected
is
over
reporting
accounting
and procedures
no
is
controls
internal
and procedures
Our
accurate
material
in
our
could
adverse
be
delisted
on our
Item
to
and
timely
accurate
our
financial
statements
and
financial
condition
NASDAQ
operate
financial
over
If
results
from The
ability
on
results
reporting
of our operating
affect
and cash
operations
financial
control
internal
financial
our
report
over
understanding
SEC we
the
to
ability
control
internal
our
Market
Capital
and
our business
could
reporting
If
If
the
our
could
be
of these
or both
either
investors
statements
financial
affect
adversely
affected
adversely
presented
fairly
our
failure
by
not
may
occur
stock
financial
In
it
in
have
an
with
filed
events
and
materially
basis
are not
have
could
failure
addition
of
results
condition
flow
Unresolved
Comments
Staff
Not applicable
Item
Properties
Our headquarters
26000
additional
2015
feet
square
or
5449
We
year terms
facilities
alternative
Item
on May
are
square
have
offices
31 2015
to
adequate
or additional
with
meet
option
our
needs
in
to
Tampa
extend
and
that
Our headquarters
California
Leads operations
in
Irvine
lease expires
lease expires
located
an
building
terminate
Our Finance
This
office
an
headquarters
to
rights
feet
also
are located
of the extended
an
in
office
which
existing
consist
in
one-year
future
growth can
We
be
the lease
term
as
Troy Michigan
2843
term
of approximately
extend
of approximately
additional
and
extend
to
three-year
building
to
consist
option
square
believe
that
accommodated
an
and occupy
two additional
feet
for
of July 31
This
our
by
onelease
existing
leasing
space
Legal Proceedings
See Note
Supplementary
Item
with
in
The
space
of July 31 2016
approximately
expires
term
three-year
as
are located
of leased
Data
Mine
of
the
of
this
Safety
Notes
Annual
to
Consolidated
Report
Financial
Disclosures
Not applicable
17
Statements
is
in
incorporated
Part
II
herein
Item
Financial
by reference
Statements
and
PART
Item
Market
Common
for Registrants
Equity
II
Related Stockholder
and
Matters
Purchases
Issuer
of Equity
Securities
Our common
symbol ABTL
our
common
effective
as
The following
stock
All
sets
per
the calendar
have
been
for
all
periods
Market
Capital
to
presented
and
trades
the range
indicated
quarters
adjusted
NASDAQ
The
on
listed
is
share
for
forth
amounts
share
per
$0.00
table
the Reverse
reflect
under
sales
the
prices of
Stock
Split
of July 11 2012
Lv
High
2011
First
Quarter
Second
Third
Quarter
Quarter
Fourth
Quarter
7.35
4.30
7.30
4.90
5.90
4.10
4.60
3.50
5.25
3.70
4.85
3.55
4.00
3.43
4.29
3.73
2012
First
Quarter
Second
Third
Quarter
Quarter
Fourth
As
cash
February
Item
25 2013
of February
on
our
common
25 2013
our
common
dividends
there
we
and
stock
stock
Quarter
closing
do
not
was $4.22
price
common
of our
to
expect
per
We
stock
dividends
cash
pay any
have never
declared
the foreseeable
in
or paid
future
any
As of
share
Financial Data
Selected
Not applicable
Item
Managements
You
should
Risk Factors
Part II Item
preceding
read
included
of
of
Part
the following
Part
in
Annual
this
this
and
Discussion
of our
and
of operations
results
on Form 10-K
Report
Annual
discussion
Item
and Results of
of Financial Condition
Analysis
Financial
financial
Statements
Operations
condition
in
conjunction
of Forward-Looking
thereto
with
the
included
in
Statements immediately
on Form 10-K
Report
Overview
For the year ended
may
continue
industry
the
to
be
December
market
for
in
effect
Availability
of and
and
Disruption
The
interest
in
the available
that
impact
customers
Volatility
effect
advertising
in
in
of operations
and
financial
condition
were affected
of changes
activities
for
for
on the number
financing
of vehicle
for vehicle
purchasers
purchases
vehicles
of
inventory
will
automobiles
be
fewer
purchasing
vehicles
overall during
their
lifetime
as
result
of
our customer
spending
rates
consumers
of gasoline
or decreases
unemployment
incentives
quality vehicles
Increases
The
of high
purchase
The expectation
better
results
our business
the future
The adverse
Pricing
31 2012
and
conditions
in the automotive
by general economic and market factors including
Leads and the market for advertising
but not limited to the following
services
including
affected
the
on demand
number of
retail
vehicles
Dealers
or
in
the
number of Manufacturers
base
by Manufacturers
in
for
search
engine
and others
in their
marketing
and methodologies
algorithms
and margins
18
budgets
and allocations
on our Lead
generation
and
and website
Results
of
Operations
The following
table
sets
our
forth
of operations
results
as
revenues
of
percentage
Ended December 31
Years
2011
2012
Revenues
Lead
Advertising
5.3
6.0
Other
0.2
0.4
revenues
Total
100.0
100.0
60.7
59.3
393
40.7
12.8
14.0
10.2
11.0
11.7
12.5
of revenues
Cost
Gross margin
expenses
Operating
and marketing
Sales
Technology
General
support
and administrative
and
Depreciation
amortization
settlements
Litigation
Total
operating
expenses
2.6
2.8
0.4
0.7
36.9
39.6
income
2.4
1.1
Interest
0.2
0.1
Income
tax provision
0.5
0.5
2.1%
0.7%
Operating
Netincome
Revenues
93.6%
945%
fees
of similar services
by groups
and gross
are as follows
profits
Ended December 31
Years
2012
vs 2011 Chan2e
____
Qii
in
dollar amounts
thousands
Revenues
Lead
$63109
3524
3850
326
169
227
58
66802
63812
2990
40530
37829
2701
Other
revenues
Total
revenues
Cost
of revenues
excludes depreciation
Gross
Lead
The
increase
2011
over
The
Advertising
to
one
of the
acquisition
was
that
due
to
$326000
or
8%
advertisers
Other
related
revenues
to
$3.4
in
the general
Companys
primarily
is
also
increase
of deferred
Other revenues
revenues
7%
to
million
of $0.3
recognition
out with
is
increased
revenues
due
primarily
$26272
profit
Lead
fees
was
$59735
million
as well
in
decrease
in
in
$58000
Dealer
SEM
marketed
19
2012
revenues
2011
in
26%
service
in
related
data
to
compared
in
The
increase
Lead
Finance
in
Lead
volume
industry
2012
to
compared
advertising
licensing
to
2011
campaigns
was
that
primarily
due
were closed
revenue
2012
compared
revenues
which
in
2011
decrease
by
offset
the automotive
in
or
in
1%
289
$25983
volume
advertising
revenues
as the reduction
decreased
actively
Lead
improvement
advertising
6%
or
automotive
decrease
26
of
$ll8in2Ol2and$221in2011
revenues
6%
3374
fees
Advertising
to
is
2011
legacy
The
decrease
product
in
other
of the Cyber
Cost
and
traffic
and
content
and
depreciation
search
including
costs
The
increase
$2.7
payments
engine
our
websites
to
Lead
to
consists
of search
on search
of
activity
included
expense
and
revenues
our
drive
properties
license
SEM
traffic
compared
to
third
connectivity
server
fees
sometimes
for
parties
costs
equipment
referred
to
as
due
to
the
paid
website
to
2011
to
Lead
portals
technology
Websites
to
2012
in
on
of revenues
other cost
internet
SEM
marketing
engines
and
costs
including
Company
the
to
acquisition
engine
related
related
the cost
in
traffic
providers
SEO
on keywords
increase
and
Lead
our
compensation
directly
of bidding
7%
million or
made
optimization
amortization
the practice
is
automotive
in
Operating
related
of Lead
consists
search
technology
marketing
of
providers
development
of revenues
costs consist
acquisition
information
data
Cost
of Revenues
was
primarily
7%
volume
were as follows
expenses
Ended December 31
Years
vs 2011 Chan2e
2012
iil
dollar amounts
Operating
and marketing
Sales
Technology
support
and administrative
General
Depreciation
and amortization
Amortization
related
to
acquired
operating
ended
the year
and $42000
in
costs
and
to
year
with
related
to
the Reverse
the
and
fully
amortized
The
arbitration
General
the prior
claim
698
1073
1073
1717
1771
ended
for
support
4%
compared
to
equity
the prior
personnel
Sales
expense
and marketing
Sales
2%
578
our brand
developing
39
178
25258
software
benefits
compensation
costs
and marketing
expense
also included
to
$0
monitor
and
operate
and other
licenses
Companys
the
direct
and
websites
costs
related
infrastructure
December
administrative
was
31 2012
by an increase
in
due
headcount
costs
for
expense
primarily
by $197000 or
decreased
maintenance
software
decrease
offset
costs
54
451
marketing
support
technology
and
The
year
54
the
to
with
timing
related
ended
year
December
regard
to
compared
31 2012
other
to
the
charges
decreased
the contingent
costs
3%
licensing
costs
earnout
associated
settlement
and Administrative
and
Depreciation
decrease
to
Litigation
year
seeking
due
in
amortization
and
depreciation
expense
for
amortization
the
year
related
to
ended
certain
December
31 2012
capitalized
software
2011
in
LitigationSettlements
arbitration
internal
General
brand
in
includes
maintain
the year
amortization
becoming
in
644
Split
by $54000 primarily
million
for
acquisition
decreased
$0.5
135
4%
expensed computer
the prior
Cyber
2012
manage
expense
lower
to
to
Stock
Depreciation
197
7987
by $370000 or
decreased
support
Companys
Administrative
by $135000 compared
accrual
Technology
the
support
due
General and
7045
7852
Dealer
advertising
million increase
costs during
enhance
to
operate
primarily
31 2012
$0.3
by
includes
expense
website
sales
December
Support
Technology
prior
Dealer
offset
by the Company
technologies
6848
24680
and marketing
Sales
related
severance
Technology
incurred
370
273
expenses
personnel
8906
settlements
Litigation
for
and amortization
depreciation
Total
8536
intangible
assets
Total
decreased
thousands
and amortization
Depreciation
expense
in
expenses
The
$0.5
indemnification
represented
operating
settlements
million
from
the
in
the
third
recovery
for
the year
ended
year
party
of
ended
supplier
fees
legal
expenses
20
December
December
relating
and
31 2012
31 2011
other
to
the
were $0.3
was primarily
third
related
partys method
expenses
million
compared
previously
soliciting
expensed
to
of an
Leads
under
and
Interest
December
the
Other Income
31 2012 compared
$132000
in
gain
$40000
to
investment
Interest
the prior
for
year
$139000
to
increased
ended
the year
for
2012
for
due
primarily
to
investment
realized
by $99000 or 248%
increased
Interest
Information
Segment
We
conduct
Our
services
and
Liquidity
The
are
operations
business
one
into
single
We
as similar markets
which
segment
reportable
defined
is
or
revenues
assets
automotive
providing
based
segment
operating
do not have
as
in
generated
foreign
marketing
economic
similar
upon
and
jurisdictions
Resources
Capital
below
table
within
aggregated
as well
characteristics
operating
business
our
sets
forth
flow
of our cash
summary
the
for
years
ended
December
Years Ended
31
December
2012
2011
in thousands
Net cash
provided
by operating
Net cash
used in
provided
Net cash
used in
of
totaled
equivalents
On
authorized
activities
by financing
activities
and accounts
equivalents
31 2012
of December
164
1673
and cash
liquidity
million as
the
additional
an
to
to
compared
common
aggregate
repurchased
Company and
We
returned
entered
be
may
Facility
The
22
receivable
cash
and cash
had
approved
and
Our cash
balances
of $11.2
equivalents
million
of
as
an
into
used
as
the
through
price
finance
to
on
stock
Board
2012
June
of
use
of
that
program
repurchase
authorized
Directors
these
Under
all
shares
The
We
cash
available
December
31 2012
December
and unissued
source
for
paid
we
programs
repurchase
during
repurchased
shares
repurchased
began
not
the year
were
was
the year
during
No
shares
were cancelled
an
for
repurchased
$3.83
the
Company
repurchasing
shares
31 2012 379811
to
us
were
by the
shares
million revolving
$8.0
stock
The
stock
does
This authorization
on the open market or in private transactions
terminate
of shares
and the Board of Directors
or
suspend
modify
may
repurchases
ended
Directors
common
time
average
authorized
to
common
2012
the quarter
during
fund
will
of$l.5 million
price
number
specific
We
to
of
Company
of
Company
from time
Board
the
that
million
million of
stock
purchase
any time
stock
on March
$1.5
to
up
$2.0
common
at
programs
of
repurchase
repurchase
us
13 2012 we announced
February
repurchase
require
$15.3
46
by investing
31 2011
December
may
provided
2204
5806
activities
credit
Facility
facility
expenditures
capital
in
February
2013
stockholder
acquisitions
with
Union
N.A
Bank
other
and
buybacks
The
general
Reference
Rate
will
bear interest
at either
the banks
prime rate minus
Borrowings under the Facility
purposes
will
also
the
of
the
We
Interbank
Rate
0.50% or the London
LIBOR plus 1.50% at
option
Company
pay
Offering
been
drawn
of
in
The
has
not
commitment
fee
0.10% payable
arrears
Facility
against as of
on the unused facility
quarterly
corporate
and
covenants
liquidity
2013
The
The
We
Facility
believe
will
Facility
be
financial
EBITDA
profitability
current
cash
and
satisfy
that
including
worth with
by
first
which
the
the
Company
minimum
in
with
compliance
negative
consolidated
as
of February
net
28
and proceeds
receivable
on our accounts
interest
security
priority
was
Company
and
affirmative
warranties
maintain
2015
February
to
net
and
customary representations
covenants
are secured
Facility
sufficient
certain
and tangible
in
matures
our
contains
Facility
and
restrictive
thereof
the
2013
28
February
cash
our
balances
equivalent
working
together
and
capital
capital
with
anticipated
expenditure
cash
from operations
flows
requirements
for
at
the
least
and
next
12
months
Net
resulted
Cash
primarily
Provided
increase
in
as
adjusted
decrease
in
for
was
our accounts
Net cash
by
provided
non-cash
our accounts
the
of $1.4
result
payable
of
charges
to
receivable
million
of $0.8
activities
earnings
balance
offset
of $2.0
cash
as adjusted
provided
for
increase
year-over-year
balance
by operating
Net
Activities
Operating
non-cash
in
by
operating
charges
our accounts
to
activities
2012
addition
balance
of $0.5
earnings
receivable
in
in
of
to
$5.8
an
million
increase
million
offset
in
by
million
in
2011
of
$2.2
million resulted
primarily
by
working capital which was the result
balance
of $0.6 million
million and accounts
payable
decrease
21
in
of
of $0.4
million
year-over-year
Net
consisted
to
deposit
Used
Cash
of proceeds
of $0.8
Used
Net Cash
We
acquisition
also used
86644
in
2011
stock
of
stock
$0.3
if
options
Contractual
million
activity
of
activities
$0.2
million
to
2011
in
to
shares
379811
repurchase
2011
during
contingent
the
for
Cyber
of property
million
2012
in
of
certificate
and equipment
from
received
were exercised
options
to
common
long-term
2012
during
resulting
consideration
contingent
of
the
in
Cyber
stock
We
inflow
million of cash
of stock
$0.4
of proceeds
Our future
acquisition
depend
of
and equipment
related
$0.4
in
of $46000
activities
investing
consisted
of property
of our
resulting
consideration
in
as redemption
million of purchases
$0.8
by
well
as
million of purchases
by $0.6
were exercised
related
will
any
offset
used
cash
investment
strategic
SEM
offset
million
$1.5
options
million
long-term
certain
Net
Activities
Investing
stock
10982
in Provided by Financing Activities
We also made payments in 2012 of $0.2 million
inflow
cash
of
by investing
provided
investment
$27000 of
from
the processing
secure
Net cash
strategic
in Provided by
received
made
also
cash
payments
from employee
flows
exercises
option
Obligations
The
table
following
provides
information
aggregated
about
our
contractual
outstanding
obligations
of
as
31 2012
December
Years
December 31
Ending
in thousands
2017
2013
$656
leases
Operating
Long-term debt
lease
financial
debt
Long-term
Sheet
Critical
We
assets
and
amounts
others
our
For
Consolidated
financial
statements
which
$1081
Annual
$6081
and
and
Leases
for
disclosed
in
Note
of
the
consolidated
Form 10-K
on
Report
Debt
Topic
5000
$5021
Accounting
Topic
this
disclosed
in
Note
of
the
consolidated
financial
statements
Form 10-K
on
these
in
us
of
and
the
and
liabilities
We
period
could
results
our
application
of the
used
our
from our
results
and
other
and
accounting
To
estimates
accounting
Financial Statements
critical
condition
financial
and
statements
the preparation
in
or
in
accepted
the reported
affect
financial
the following
assumptions
generally
that
assumptions
the date
at
materially
these
principles
and
believe
and
differ
actual
of
accounting
estimates
estimates
Part II Item
in
make
to
assets
determining
actual
with
conformity
require
estimates
discussion
Statements
Financial
in
arrangements
the reporting
during
Accordingly
detailed
sheet
of contingent
judgment
between
differences
affected
Estimates
and expenses
significant
statements
material
Report
off-balance
and
and disclosure
of revenues
financial
of
FASB
by
Annual
$404
FASB
by
Item
II
defined
this
U.S GAAP
liabilities
require
Part
any material
Policies
prepare
America
of
of
Total
Arrangements
do not have
Accounting
States
Item
II
defined
in
as
obligations
in Part
included
We
included
and
thereafter
5000
as
obligations
statements
2016
21
$404
$656
Operating
2015
obligations
Total
Off-Balance
2014
see
policies
of
among
consolidated
there
are
may
Notes
be
that
of the
this
of
the reported
operations
Note
Data
Supplementary
our
extent
of
United
policies
of
the
results
the
amounts
Annual
to
Report
on Form 10-K
Revenue
Fees
paid
by
fees
subscription
We
period
on
websites
recognition
Investments
publicly
and
traded
technology
is
In
company
evidence
performance
prior
revenues
August
for
systems products
we
services
display
an
acquired
and
for
service
providing
million
our Lead
of
are generally
less
Driverside
programs
exists
deferred
over
5%
provides
related
22
to
is
pricing
and
fixed
efficient
the period
do
they
interest
consumers
the
and
finance
the periods
equity
vehicles
request
transaction
fees
and/or
on our websites
recognized
are
than
programs
occurred
has
as revenue
for
advertising
arrangement
services
are recognized
2010
$1.0
to
buying Leads
in
of
revenues
Advertising
billed
Deferred
or
fees
represent
when
delivery
of vehicle
participating
revenues
provided
Fees
criteria
Manufacturers
revenues
recognize
the service
our
and
Advertising
assured
reasonably
Leads consist
Recognition
Dealers
in
satisfy
broad
of
collection
is
in
the
revenues
are displayed
U.S GAAP
all
revenue
provided
Inc
Driverside
ownership
as
the advertisements
not
services are
with
determinable
recognized
set
non
Driverside
of content
motor vehicles
features
We
tools
received
shares
1352082
of
Driverside
in
significant
influence
$823000
which
our
indemnification
complete
Allowances
for
based
credits
customer
on
customers
to
marketing
expenses
to
known
on
written-off
historical
customers
there
sheet
at
to
which
the
received
We
satisf
income
of
by Driverside
established
of
payment
closing
2012 we
In
of milestones
in
other
as
and
record
for
allowances
post-
recorded
as
13.0%
represented
debts
bad
potential
environment and
known
from the
or
business
the current
in
and
concerns
and
estimated
established
As
for
bad
services
that
allowance
for
specific
and
debts
in
our
and
sales
environment and
business
expenses
marketing
of
refusal
increase
an
allowance
the estimated
in
inability
as
the current
percentages
Reductions
sales
result
for
write-off
receivable
could
that
expense
allowance
decrease
the previously
increase
of
From
when
amount
of
allowances
Finance
ended
may change
sales
until
bad
debts
bad
debts
are
no
impact
on
have
due
Fair
an
value
which
Instruments
We
are
still
awaiting
are
New
to
the
claims
be
of
our
allowances
financial
or
analysis
each
matter
We
accrued
of
The
$175000
and
Taxation
Gain contingencies
audit
connection
in
fees incurred
legal
The
case
individual
Department
State
We assess the
We record
estimated
reasonably
of each
in
losses
of probable
can
York
Any
condition
estimated
operations
other
of the states
results
present
and
loss
after
allowance
are written-off
they
receivables
ranges
the
developments
related
the revenue
the
which
are
with
Level
other
at
the
the
our
exchange
We
use
two
first
are
for
the
be
asset
The
or
standard
and the
observable
liabilities
received
in
fair
an
an
defined
is
transfer
to
between
orderly transaction
fair
unobservable
which
asset or paid
value
describes
last
value
fair
at
for
liability
measure
to
techniques
inputs
and
assets
would
that
price
valuation
considered
financial
market
most advantageous
date
active
in
than
include
markets
Level
quoted
by observable
Inputs
or
record
the
maximizing
value
hierarchy
be
that
may
as
quoted
used
use
based
to
of
on
measure
following
liabilities
corroborated
as the
standards
of
Inputs
liability
realize
measure
Quoted prices
or
we
31 2012
material
liability
of
of
results
lawsuits
potential
the
financial
additional
services
business
determined
is
new
as
amount
the
are
that
the estimated
in
the
affects
our accounts
support
well
as
and
our
our
proceedings
to
contingencies
there are
if
to
the principal
the
and
are
Level
assets
in
on
of inputs
Level
to
matters
probable
as the estimated
necessary
accounting
price
exit
outputs
levels
the future
December
of
of Financial
Value
market participants
observable
in
these
for
31 2011
elements
all
the applicable
liability
As
any
is
with
on
impact
and
are rendered
on revenues
no impact
negatively
dissatisfied
subject
of these
that
customers
our
revenues
in
are identified
credits
and have
credits
collateral
time
meet
not
services
after
Reductions
customer
specific
the
of
do
reduction
as
expensed as incurred
are
contingency
December
tax audit
recorded
if
are
and
we may be
outcome
unfavorable
required
of allowances
the year
an
that
required
recorded
are
expectations
environment
do not require
time
to
As
future
customer
for
customers
be
generally
time
revenues
economic
for
credits
credits
iv
in
judgments or outcomes
any adverse
contingency
We
of
may
customer
time and
allowance
general
credits
material
increase
of adjustments
estimate
for
of
the
at
estimated
number
the
in
customer
amount
the
the
our
is
allowance
known
as an
in
decline
is
be
could
likelihood
fair
debt
historical
as
as
credits
of
factors
established
Contingencies
three
bad
of
of accounts
aging
estimated
recorded
are
and
debts
condition
under
such
factors
against
experience
credits
or an
bad
not
recorded
estimate
percentages
the estimated
to
recorded
are
the
to
iii other
the previously
If
in
on
customer
for
Additions
are issued
amount
estimate
our
is
the current
are
allowance
customer
loss
We
Credits
the write-off
as
Additions
are based
recoveries
requirements
against
balance
received
$326000
received
escrow account
from an
cash
in
have
not
expenses
The
for
and
within
cash
they
operating
for
for
pay
subsequent
credits
our services
concerns
identified
based
the
$132000 was
received
$823000
do
we
because
balances
bad debts
for
Customer
such
factors
receivable
our accounts
The allowance
the
and
Driverside
in
Of
$106000
The
achievement
upon
released
we
investment
additional
an
cost
at
and
entity
on the consolidated
payments
any
if
Driverside
in
another
consideration
merger
amounts
from $0
ranges
with
investment
of contingent
of
share
our investment
to
initial
the
share
rata
rata
that
of
investments
the
We made
investment
our
merged
the Driverside
to
for
our investment
on
within
share
our pro
claims
reduction
Company recorded
2011 Driverside
reduction
our pro
Driverside
in
Stock
In
rata
pro
as
receive
to
The
Driverside
over
represented
entitled
closing
Preferred
$16737
for
recorded
was
$326000
return
2011
representing
transaction
are also
Series
prices
for
in
market data
markets
for
managements
measurement
date
either
are observable
that
The
that
are
not
substantially the
best
estimate
inputs
are
liabilities
assets or
identical
directly
active
full
of what
unobservable
valuation
23
term
other
of the
assets
inputs
or
market participants
in
such
or indirectly
or
the
that
are
prices
observable
for
similar
or
can
be
liabilities
would
market and
use
significant
in
pricing
to
the
the
asset
or
instruments
The
included
consideration
total
of the Acquisition
Date
probability
weighted
Acquisition
Date was
$526000
for
changes
which
was included
Carlo
The
Simulation
measurement
Level
modal
values
Cash
which
and
assets
Depreciation
three
generally
shorter
of the
to
charged
expenses
income
as operating
accordance
in
the application
enhancements
use
internal
years
useful
Share-Based
the
of an
the service
over
Black-Scholes
expected
term
option
estimate
We
price
of our common
we have
our
and
historical
best estimates
if
result
different
those
factors
in
are granted
Income
for
recognized
Taxes
the
recovered
period
that
rates
allowance
assets
and
expected
includes
against
We
tax
or settled
amount we believe
be
future
amounts of existing
tax
the
The
to
value
to
price
effect
more
and
date
than
and
to
and
over
the
costs
are
equipment
which
while
over
an
estimated
the
straight-line
the
during
and configuration
and
upgrades
functionality
using
use
require
incurred
design
incurred
as
internal
develop
respectively
additional
Capitalized
useful
not
We
to
assets
record
be
under
to
realized
in
of
life
method
three
the
over
is
and
the
tax
and
years
24
fair
of
using
the
grant
Deferred
tax
if
in
necessary
to
be
tax
assets
and
are
are
recognized
reduce
to
liabilities
statement
liabilities
period we continued
for
awards
that
the share-based
differences
is
materially
expense
period
the financial
rates
As
judgment
expense
and only recognize
and
assets
tax
awards represent
temporary
the
combination
or
volatility
could
Deferred
of
because
volatility
management
the current
We
of future
volatility
of our share-based
between
those
change
allowance
rate
different
in
historical
of share-based
of
the
including
forfeitures
option
historical
implied
value
experience
method
tax asset
of the date
to
expected
of grant
are representative
on
used
compensation
recorded
which
of
in
share-based
shares
the date
assumptions
believe
have
forfeiture
differences
liabilities
valuation
We
historical
liability
in
we
the application
materially
bases
as
pre-vesting
of grant based
the
share-based
on
on
method
value
fair
recognize
those
for
price
the use of an
support
temporary
the
which
the date
calculating
based
cost
subjective
expected
the expected
rate
respective
income
tax
to
in
taxes
of highly
and
at
we
estimated
is
closing
of the awards
our
forfeiture
stock
experience
stock
rate
award
the
using
provisions
compensation
input
uncertainties
forfeiture
their
the
stock
used
attributable
on deferred
likely
cost
rates
volatility
estimate
to
different
taxable
to
in
these
option
interest
term
assumptions
income
recognize
common
historical
the expected
actual
our
for
liabilities
method
maintenance
Topics
costs
compensation
Under
stock
risk-free
common
of our
inherent
the
consequences
the enactment
is
If
only
of each
requires
on
based
significantly
apply
costs
by software
method
stock
are required
estimate
account
at
of the respective
of property
Costs
expensed
are
result
are amortized
Codification
expense
involve
cancelled
could
expense
in
depreciation
lives
and
sale
or
development
straight-line
service
the underlying
on
different
we
We
vest
and
exercised
compensation
in
The assumptions
use
In addition
to
expected
we
the
using
account
expected
equal
estimates
and
are carried
straight-line
capitalize
characterized
will
and expected
granted
volatility
but these
change
is
stage
costs
and therefore
of the price
period
and website
expenditures
placed
of
fair
based
awards
for
implied
the future
shares
enacted
stock
rate
compensation
volatility
useful
Repair
Development
maintenance
limited
of both
the
and
such
We
Costs
Website
the
development
We
volatility
of options
life
costs
Topic
The
model
price
share-based
estimate
software
once
Expense
forfeiture
pricing
as
changes
ites
of the award
of the share-based
the expected
behavior
and
that
costs
Compensation
stock
as well
of
instruments
the
Monte
maximum and
rate
result
as
accumulated
less
using
Cyber
using
minimum
liabilities
estimated
provided
is
Development
ite
are amortized
webs
the
of the improvements
lives
Software
Training
probable
costs
estimated
expected
term
is
related
period
Calculating
expected
it
development
Stock
Webs
computer
Compensation
the
net
compensation
vest
if
of the
and
installation
development
website
lives
with
and
improvements
useful
cost
at
over
of
change
of these
maturity
stated
are
method
of the
account
to
of
and accrued
payable
of the short-term
or losses resulting
The application
stage
accounts
the period
the
of the
as
2010
estimated
consideration
contingent
and
targets
acquisition
index
in
the
the
consisted
of
quarter
was
in
the
arrangement
of
consideration
Simulation
estimate
for
respectively
Internal-Use
internal
capitalized
software
accordance
and
testing
are
Capitalized
estimated
the
development
coding
activities
with
of external
capitalization
expenses
the
third
result
not observable
rate
of income
straight-line
of leasehold
Gains
of
equipment
the
using
Use Software
Internal
Capitalized
software
or
value
because
lease
fair
Carlo
Date
an
of achieving
since the
as
Acquisition
recognized
consideration
recognized
close
of allowance
and
Property
as incurred
operating
are recorded
net
value
Amortization
years
remaining
volume
on the statement
fair
provided
is
Monte
the
value
fair
inputs
significant
Lead
in
receivable
Equipment
on
was
liability
contingent
of the contingent
value
applying
changes
effect
approximates
$155000 of
consideration
fair
based
is
in
Future
material
believes
Property
amortization
The
17 2010
September
Date
on the probability
based
of the
value
fair
additional
Income
measurement
accounts
equivalents
management
an
on
the Acquisition
consideration
The
quarterly incremental
have
could
inputs
significant
On
the contingent
for
of
assumption
distribution
triangular
recorded
the expected
for
We
of Cyber
acquisition
million
flows
cash
on
value
fair
$1.0
of the contingent
the Statement
in
the
of
part
to
up
of outcomes
the range
in
of
value
fair
discount
as
paid
consideration
contingent
deferred
maintain
are
carrying
measured using
expected
in
income
tax
assets
full
to
be
in the
to
an
valuation
As
reduced
to
our deferred
our
uncertain
Deferred
in
assets
the
tax
sold
is
of
acquisition
amortization
where
tax
Cyber
deferred
in
Goodwill
and
assets
the
second step
by deducting
value of goodwill
We
the difference
whenever
events
Impairment
determine
if
of
performance
our
and
exist
based
the estimated
the
for
valuation
process
that
if
we
impairment
Recent
consistency
Standards
basis
for
to
If
the
fair
value
This
ASU
asset
is
did
it
more than
impairment
of the
for
by
the
value
of
If
the
unit
equal
of each
year or
During 2010
were
there
no
adverse
related
assets
that
in
charge
the
to
could
be
2012
the
of
assets
is
Cyber
related
future
to
Our
operational
impairment
that
for
and
impairment
eventual
their
and
includes
fair
of operations
results
31 2011 we had
At December
We
impairment
is
on
based
determined
their
to
loss
impairment
model which
flow
assets
condition
acquisition
to
and
determined
generally
to
accelerate
to
recoverable
assets
flows an
cash
financial
subject
the
cash
discounted
on our
need
be
not
assess
write-down these
will
the
conclude
to
us
We
Fair value
using
effect
cause
value
may
assets
long-lived
or
market conditions
undiscounted
value
assets
review
assets
value
future
fair
its
could
fair
result
determined we
assets
did
not record
any
asset
long-lived
is
annual
this
among
at
asset
how
asset
than
likely
assets
The
categories
that
not
complexity
those
tests
entity
for
ASU
indefinite-lived
an
an
least
Previous
is
annual
an
than
less
if
its
any
that
it
guidance
basis
is
this
more
amount
carrying
Under
under
Topic
the
by comparing
ASU
likely
tests
an
than
then
performed
was optional
25
is
that
for
but the
required
value
the second
entity
not
350
fair
with
its
fiscal
fair
an
entity
the
step of
value
to
Company
to
is
may
adopt
test
less
the
as
impaired
350-30
Subtopic
test
its
assess
first
is
defined
as
indefinite-lived
amount
carrying
must be performed
calculate
years beginning
is
test
improve
to
to
threshold
not required
and
entity
asset
intangible
for
impairment
an
impairment
permits
Standards
Assets
Intangible
of performing
test in accordance
impairment
perform the quantitative
than Goodwill
The more-likely-than-not
Other
Intangibles
determines
ASU
an
Testing
and
the cost
2012 Accounting
In July
Indefinite-Lived
to
50 percent
on
to
reduce
long-lived
more
is
necessary
impairment loss
entity
not adopt
simplifying
it
350
Other
Goodwill and
Intangibles
ASU
this
guidance
Other-General
unless the
350
of
whether
of the intangible
effective
The Company
assets
testing
whether
of
for
fair
Other
objective
determine
and
likelihood
assets
The
impairment
Intangibles-Goodwill
intangible
to
of these
is
Intangibles-Goodwill
intangible
determining
having
over
material
long-lived
Codification
20 12-02
issued
factors
qualitative
fair
its
recognized
quarter
may be impaired
31 2012
periodically
factors
legal
events
estimated
its
$68000 impairment
Goodwill and
indefinite-lived
in
is
to
Pronouncements
ASU No
was
have
on
their
expected
value
fair
of intangible
but recorded
Accounting
Impairment
flows
We
the carrying
that
determine
to
amount
of
indicate
Future
exceeds
asset
could
$2.9
intangibles
for
assess
intangibles
the valuation
2011
Accounting
Update
Once
million
$4.5
Cyber
of
for
complete
implied
loss
value
value
then
December
of
as
are based
reviewed
carrying
million of remaining
approximately
in
recorded
tax
Testing
fair
of the reporting
the fourth
goodwill
and
Assets
indicators
cash
estimate
an
Any write-down
necessary
During 2010
be
of an
the assets
provides
and estimates
assumptions
other
and
undiscounted
amount
of
excess
basis
of
amount
of
in
we
the
goodwill an impairment
annual
an
of
value
fair
the
carrying
and
impaired
the calculation
from the
assets
on
Other Intangible
impairment
should
assets
future
the carrying
If
recorded
value
the
that
of
assets
long-lived
indicators
many
and
Assets
of these assets
We
is
any impairment
whenever events or changes
in circumstances
the existence
the
to
goodwill
of Long-Lived
judgments regarding
disposition
to
when
The
years
impairment
for
goodwill
potentially
is
of enterprise
the acquisition
there
amortization
on
amount
the recognized
in
net
the carrying
that
suggest
related
the
for
period
related
15
over
acquisitions
enterprise
requires
step
minimum
at
million over
to
goodwill
second
amount
of
us
requires
business
for
price
value
and intangible
goodwill
goodwill
of
any
tangible
circumstances
in
The
the carrying
enterprise
in
million
all
first step
of goodwill
million
1.7
$10.3
intangible
income
of
future
indefinite
any
2012
in
source
on
accrued
any
indefinite-lived
as
some
have
not
31 2012
the purchase
the carrying
$1
of
goodwill
December
at
not serve
until
recorded
did
changes
accrued
penalties
and
goodwill
life
not reverse
basis
and
was recognized
expense
benefits
were no material
31 2012 we
ordinarily
2010 we
tax
value enterprise
if
loss
than
less
evaluate
The
the carrying
of
of
evaluate
process
value
is
changes
$11.7
recognized
changes
or
We
useful
will
liability
During
of $620000
the excess
impairment
fair
fair
implied
we
the
measure
to
tax
interest
will
period
are amortizing
liability
acquired
than
less
is
tax
two-step
the
goodwill
to
is
value
fair
we
and no
tax
unrecognized
There
interest
recognize
December
of
indefinite
an
carryforward
impairment
to
represents
liabilities
impairment of goodwill
If
due
expense
with
the deferred
because
down
loss
As
million
of $0.6
to
is
These
benefits
tax
allowance
policy
tax benefits
asset
finite
is
Goodwill
value
there
an
to
Our
tax
any unrecognized
related
assets
or written
resulted
identifiable
with
valuation
to
period
income
of
of unrecognized
million
the current
component
liabilities
of deferred
asset
as
$0.6
were subject
during
associated
jurisdictions
realization
which
assets
benefits
or penalties
interest
tax
tax positions
tax
unrecognized
had
31 2012 we
December
of
than
after
ASU
the
its
fair
value
in
to
the
amount
carrying
September
of
15 2012
the future
7A
Item
and
Quantitative
At December
Item
31 2012 we had
Financial
Balance
Income
Comprehensive
Sheets
Item
in
Changes
and
in
the report
of our
and
Flows
independent
for
registered
2011
and
each
of
public
our
the
Consolidated
Statements
the
in
years
two-year
on page
firm begin
accounting
Income
of
ended
period
F-i
of
this
by reference
Accountants
with
Disagreements
31 2012
Cash
herein
are incorporated
equivalents
Data
and
Equity
Risk
and cash
cash
December
as of
Stockholders
December
Annual
million
$15.3
and Supplementary
Statements
Our Consolidated
and
about Market
Disclosures
Qualitative
and Financial
on Accounting
Disclosure
None
9A
Item
Controls and
Disclosure
We
have
information
regarding
that
Act of 1934
the
in
and
cost-benefit
In
control
relationship
concluded
the
that
Managements
such
term
evaluation
of
limitations
management
Framework
reporting
Changes
in Internal
There have
been
3a-
of the
used
the
Based
on
Other Information
See
the
Liquidity and
herein
this
description
Item
disclosed
information
and
was
as
and reported
and
provide
to
required
in
the
the time
our
to
decisions
timely
recognized
reasonable
judgment
its
under
communicated
allow
to
only
apply
material
that
filed
are
controls
operated can
necessarily
that
summarized
appropriate
ensure
to
designed
the reports
in
accumulated
is
officer
the disclosure
designed
are
by us
recorded processed
financial
this
chief
of
assurance
in
the
evaluating
internal
set
forth
evaluation
of
of
our
$8.0
Resources
in
Part
chief
financial
officer
31 2012
and
over
chief
has
financial
issued
the
financial
reporting
the participation
conducted
31 2012
December
misstatements
COSO
the
that
over
with
management
as of
or detect
by
concluded
and
officer
reporting
not prevent
framework
control
the supervision
financial
may
management
internal
adequate
Under
Internal
entitled
Companys
Because
making
In
this
Control
control
internal
of
an
over
31 2012
controls
the
or are reasonably
patent
Act
reporting
the
and
officer
December
as of
Reporting
in internal
our
maintaining
control
in
executive
Reporting
officer
financial
chief
were effective
Exchange
executive
over
3a- 15
and
establishing
the
the
evaluation
and procedures
December
of this Annual
description
Capital
of
on
under
Financial
of Rules
9B
the
for
15f
criteria
no changes
Item
Part
this
that
procedures
be
and procedures
Companys
of
as
in
is
chief
management
Based
control
internal
that
See
that
and
well
controls
Companys
2012
Property
Act
and
Control Over
by paragraph
and
responsible
was effective
financial
required
the
required
to
evaluating
how
matter
controls
Rules
of the effectiveness
assessment
Integrated
is
in
including
inherent
its
defined
and
designing
Report on Internal
is
management
officer
disclosure
Companys
Our management
as
executive
31 2012
procedures as of December
and
and with the participation of our management including our chief executive
officer
and chief
of the effectiveness
of the design and operation of our disclosure controls and
an evaluation
we conducted
officer
forms
of possible
controls
Exchange
and
objectives
disclosure
subsidiaries
its
amended
procedures no
the desired
achieving
and
rules
chief
disclosure
required
maintain
as
SECs
our
including
controls
any
and
Company
the
to
Exchange
specified
management
Procedures
established
relating
Securities
periods
and Procedures
Controls
over
likely
financial reporting
Act
Exchange
to
that
have
materially affect
our
with
Lead
Agreement
on Form 10-K which description
Assignment
Report
million revolving
II Item
of
this
credit
Annual
by reference
26
facility
Report
identified
occurred
with
in
during
control
internal
Relay
is
connection
the fourth
in
the
Bank
over
section
herein
incorporated
Union
with
N.A
the evaluation
quarter
in
of
fiscal
year
financial
reporting
entitled
Intellectual
by reference
the
description
section
is
entitled
incorporated
PART
Information
called
our definitive
December
by the Items
Proxy Statement
2013
31 2012
Item 10
16a
Governance
information
Statement Security
Compensation
Statement
III
is
by reference
incorporated
of Stockholders
that
be
will
to
the sections
not
filed
later
listed
than
120
below
of
days
after
the
2013
Item
and
Reporting
10
Election
of
Directors
of DirectorsAudit
to
Board
Compliance
of the Board
reference
by
incorporated
is
the
following
of Directors
under
paragraphs
Committee
sections
of
Executive
Officers
the section
Corporate
and
Ethics
for
in
Item
this
11
is
Compensation--Compensation
called
Ownership
of Certain
Beneficial
for
Item
of
in this
Certain
12
is
to
the following
Owners
by reference
and
of the 2013
Interlocks
and
Proxy
Insider
Report
incorporated
sections
Committee
Matters--Compensation
Committee
Owners
Beneficial
by reference
incorporated
Governance
to
Management
Stockholder Matters
the following
and
sections
Executive
of
the
2013
Proxy
Compensation-- Equity
Plans
Certain
The
Part
Meeting
Compensation Corporate
Ownership
Security
Item 13
called
and Executive
The
this
Compensation
Statement Executive
Item 12
by
Ownership
information
Participation
for
--Committees
Executive
The
2013
1-Nomination
Proposal
Beneficial
Matters
Item 11
for our
under
Annual
Proxy Statement
called
information
Statement
Section
included
Executive Officers
Directors
The
Proxy
for
III
Relationships
information
Corporate
called
for
in this
Governance
Item
13
is
Matters--Certain
and
incorporated
Director
Independence
by reference
and
Relationships
to
Related
the following
Party
sections
Transactions
of the
2013
Proxy
-- Director
and
Independence
Item 14
Principal
The
information
Statement Independent
Services
Accountant
called
for
Registered
--Audit Related
Fees
in
this
Public
--Tax
Item
14
is
Accounting
Fees
incorporated
Firm and
--All Other
by reference
Audit
Fees
27
to
Committee
the following
sections
Report--Principal
for
of the
2013
Accountant
Services
Proxy
Fees
and
PART
Item 15
Exhibits
The
following
Financial
IV
are
filed
as
part
of
this
Annual
Report
on Form 10-K
Statements
Pane
Index
F-i
of Independent
Reports
Balance
Consolidated
Statements
of
Consolidated
Statements
of Stockholders
Consolidated
Statements
of
Notes
to
Financial
Schedule
related
notes
F-2
Income
Cash
F-5
F-6
Equity
Flows
F-7
F8
Statements
Schedules
IlValuation
is
Firm
F-4
Financial
Statement
or
Accounting
Sheets
Consolidated
Public
Registered
Consolidated
have
and Qualifying
been
omitted
Accounts
since
F-23
the required
information
is
presented
in
the
financial
statements
and
not applicable
Exhibits
The
immediately
exhibits
filed
preceding
or furnished
such
exhibits
as
part
which
of
Index
this
to
Annual
Exhibits
28
Report
is
on Form 10-K
incorporated
herein
are
listed
in
by reference
the Index
to
Exhibits
SIGNATURES
Pursuant
caused
this
of
the requirements
to
be
to
report
on
signed
Section
behalf
its
13
15d
or
of the Securities
Act of 1934
Exchange
the
on the 28th
authorized
duly
INC
AUTOBYTEL
By
Coats
Jeffrey
President
Officer
POWER
KNOW
Fuller as
Glenn
any and
all
amendment
and
and
Directors
undersigned
in
ALL PERSONS
to
Exchange
or
its
his
this
full
with
report
Commission
of
Inc
power
act
hereby
granting
unto
to
and
sign
of
for
agents
all
appoint
or
it
attorneys-in-fact
and
and necessary
do and perform any and all acts and things requisite
and purposes
do in person hereby ratifying
all
intents
as it or he might or could
and agents or any of them may lawfully do or cause to be done by virtue hereof
authority
following
to
the
requirements
on behalf of the
persons
of
registrant
the
Securities
and
in
Act of
Exchange
be
this
and
done
in
1934
this
report
Curtis
or
his
name
report
therewith
each
all that
has
been
the
or
and
and stead
place
to
with
of them
connection
and confirming
the capacities
to
its
connection
agents
to
to
Pursuant
in
in
and
DeWalt
corporation
Coats
Jeffrey
him and
amendments
documents
all
Delaware
Inc
Autobytel
and
any and
any and
said
each
constitute
hereby
alone
exhibits thereto
all
that
attorneys-in-fact and
to
ChiefExecutive
and Director
OF ATTORNEY
PRESENTS
Autobytel
and lawful
true
with
capacities
BY THESE
Officers
COATS
JEFFREY
/5/
has duly
registrant
each
file
such
the Securities
full
power
therewith
as
and
fully
to
said attorneys-in-fact
signed
below
by the
indicated
Sinature
MICHAEL
/sI
FUCHS
Michael
Is CURTIS
Is WESLEY
Is
MARK
Mark
Is JEFFREY
Jeffrey
Is JANET
Janet
28 2013
February
28 2013
February
28 2013
Director
February
28 2013
Director
February
28 2013
Director
February
28 2013
Director
February
28 2013
Chief Executive
Coats
Principal
Executive
DEWALT
Senior
DeWalt
Curtis
Michael
February
President
COATS
Jeffrey
Is MICHAEL
28 2013
of the
Fuchs
Is JEFFREY
Wesley
February
Chairman
OZIMA
Ozima
CARPENTER
Financial
Vice President
Accounting
and Director
Officer
Vice President
Principal
Officer
Officer
Officer
Officer
Carpenter
KAPLAN
Kaplan
STIBEL
Stibel
THOMPSON
Thompson
29
LEFT
BLANK
AUTOBYTEL INC
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Page
of Independent
Reports
Registered
Public
Accounting
Consolidated
Balance
Consolidated
Statements
Consolidated
Statements
of Stockholders
Consolidated
Statements
of Cash Flows
Notes
to
Consolidated
Firm
Sheets
Financial
F-2
F-4
Income
F-5
F-6
Equity
F-7
Statements
F-8
F-i
Report of Independent
The
Board of Directors
We
have
audited
Public
Registered
and
the
the
then
year
ended
ended
audit
statements
also
These
Our responsibility
included
the
consolidated
to
is
express
balance
sheet
and
listed
schedule
consolidated
Company
the
stockholders
income
schedule
statements
on these
opinion
Inc
AutobytelO
statement
financial
financial
an
of
and comprehensive
income
of
the index
in
at
and cash
15a
Item
and
statements
31
flows
for
the year
for
of the Companys
the responsibility
are
financial
December
of
as
equity
based
schedule
on
audit
our
We
conducted
consolidated
engaged
control
the
our
Those
States
perform
to
of expressing
purpose
we
estimates
that
the
opinion
ended
the
taken
in
related
as
as
reasonable
of Autobytel
position
statements
in
the consolidated
opinion
financial
our
disclosures
made by management
our
for
and
consolidated
for
basis
Inc
financial
present
as
of
our
accounting
in all
February
obtain
The
statements
not
is
Our audit
examining
on
in
test
the accounting
assessing
required
have
over
basis
of
and
the
significant
We
presentation
for
reporting
supporting
principles used
we
internal
but not
financial
evidence
the
were
nor
the circumstances
statement
financial
to
United
whether
about
consideration
control
internal
Board
Oversight
assurance
included
are appropriate
that
of the Companys
includes
Accounting
reasonable
Company
reporting
procedures
referred
31 2012
to
above
present
principles generally
schedule
material
fairly
when
considered
in
CA
28 2013
F-2
in
all
in
forth
its
to
the
respects
operations
the United
relation
set
material
of
results
accepted
/s/
Los Angeles
Company
to
believe
opinion
December
statement
fairly
also
financial
statements
with
financial
audit
audit
as evaluating
financial
conformity
whole
well
over
effectiveness
An
opinion
audit
misstatement
designing
the
on
opinion
such
the
perform
control
for
of the Public
standards
and
of material
free
basis
the
plan
internal
its
as
an
no
express
are
of
reporting
we
that
require
audit
an
with
accordance
in
statements
financial
over
amounts
audit
standards
financial
Accordingly
In
Our
31 2012
December
management
consolidated
accompanying
Inc
of Autobytel
Stockholders
Firm
Accounting
States of
basic
therein
the consolidated
and
its
cash
America
consolidated
flows
Also
financial
in
Report of Independent
The
Board of Directors
We
have
audited
consolidated
December
the Index
31 2011
is
conducted
to
Those
financial
statements
control
over
designing
financial
of the
ended
We
opinion
position
of
free
that
basis
test
believe
the
of Autobytel
December
financial
statements
at
31 2011
December
in
financial
statement
schedule
financial
statements
taken
as
the year
whole
to
U.S
ended
presents
Public
not
of
made
above
fairly
basis
present
generally
in
all
for
March
to
accepted
the
California
12012
F-3
the
the
related
ended
year
31 201
listed
in
Our
Companys management
Oversight
assurance
over
we
in
an
no such
the overall
evaluating
for
on the
opinion
An
opinion
the
internal
basis
as
reporting
of expressing
express
United
whether
of the Companys
financial
purpose
Board
about
assessing
audit
the
statement
financial
opinion
in
results
all
of
accounting
31 2011 when
material
of the
for
December
perform an audit
and disclosures
our
ended
flows
Accounting
control
for
31 2011 and
cash
On our audit
Accordingly
fairly
material
its
respects
operations
considered
in
Young LLP
and
Also
principles
/s/Ernst
Orange County
and
reasonable
by management and
the consolidated
December
obtain
internal
but not
amounts
the
based
Company
to
engaged
reporting
reasonable
31 2011 and
with
were
financial
supporting
refened
the
December
the year
for
and schedule
consideration
over
provide
conformity
for
We
estimates
significant
our audit
that
Inc
evidence
of
of
as
equity
the circumstances
in
control
internal
schedule
included
are appropriate
Companys
and
misstatement
Our audit
reporting
stockholders
statements
standards
the
plan
Inc
of Autobytel
and schedule
financial
with
we
material
presentation
our
are
that
require
sheet
income
on these
accordance
in
examining on
accounting
In
audit
standards
balance
financial statements
an opinion
audit procedures
effectiveness
includes
These
Inc
comprehensive
express
our
States
and
of income
15a
Item
at
consolidated
accompanying
Firm
Accounting
of Autobytel
and Stockholders
statements
responsibility
We
the
Public
Registered
relation
set
forth
the consolidated
its
in
to
cash
our
flows
opinion
the basic
therein
financial
for
the year
the
related
consolidated
AUTOBYTEL INC
CONSOLIDATED BALANCE SHEETS
in thousands
except
and
per-share
share data
December 31
December 31
2012
2011
Assets
Current
assets
Cash
and cash
Restricted
Accounts
equivalents
15296
400
net
receivable
of allowances
and $540
of $426
credits
at
for
December
bad debts
31 2012
and customer
and 2011
10081
respectively
Prepaid
expenses
Total
current
Long-term
25881
net
1539
assets
assets
and
Liabilities
Current
1629
194
11677
Total
22324
1593
Goodwill
Other
571
investment
strategic
assets net
Intangible
10144
504
assets
assets
and equipment
Property
11209
cash
Stockholders
2893
11677
77
77
40767
38794
Equity
liabilities
Accounts
payable
Accrued
Deferred
Total
current
note
Total
liabilities
payable
non-current
liabilities
liabilities
and contingencies
Stockholders
equity
Preferred
3837
3081
5377
4994
168
216
9382
8291
5000
5000
620
607
15002
Commitments
none
liabilities
revenues
Convertible
Other
expenses
stock $0.00
13898
Note
11445187
par
value
par
value 200000000
shares
authorized
outstanding
Common
stock $0.00
31 2012
paid-in
Accumulated
issued
and
shares
authorized
outstanding
at
46
306252
capital
deficit
Total
stockholders
Total
liabilities
The accompanying
shares
and
equity
stockholders
equity
F-4
306733
280496
281883
25765
24896
40767
38794
financial statements
AUTOBYTEL INC
CONSOLIDATED STATEMENTS
in thousands
except per-share
data
Years
Ended
December 31
2012
2011
Revenues
Lead
fees
$63109
Advertising
3524
3850
169
227
66802
63812
2011
40530
37829
profit
26272
25983
Other
revenues
Total
Cost
Gross
Operating
revenues
of revenues
excludes
depreciation
of $118
in
2012
and $221
in
expenses
Sales
and
marketing
Technology
support
and administrative
General
and amortization
Depreciation
settlements
Litigation
Total
operating
expenses
Basic
Diluted
net
and comprehensive
earnings
7852
7987
1717
1771
1592
earnings
8906
7045
24680
8536
6848
273
income
Operating
Interest
$59735
per
common
per
share
accompanying
notes
are an
integral
part
F-5
of these
consolidated
financial
statements
25258
725
139
40
344
349
1387
share
common
The
income
451
416
0.15
0.05
0.15
0.04
AUTOBYTEL INC
OF STOCKHOLDERS
CONSOLIDATED STATEMENTS
in thousands
Common
Number
Balance
December
Shares
31 2010
forfeited
stock
Issuance
upon
$46
9137812
common
of
Deficit
Capital
$282299
$305356
1032
1032
stock
of stock
345
345
86644
options
Net income
Balance
31 2011
December
Repurchase of common
Share-based
Reduction
Issuance
upon
46
9224345
stock
379811
compensation
in
reverse
par
stock
of
due
of
306733
281883
24896
1453
1455
915
915
35
35
stock
22
22
10866
Net income
December
416
stock
options
Balance
416
to
split
common
exercise
Total
$23103
111
compensation
exercise
Accumulated
Paid-In
Amount
to
pursuant
awards
Share-based
Additional
Stock
of
Shares
EQUITY
share data
except
1387
31 2012
The accompanying
$9
8855400
notes
are an
integral
part
F-6
of these
$306252
consolidated
$280496
financial
statements
1387
$25765
AUTOBYTEL INC
CONSOLiDATED STATEMENTS
OF CASH FLOWS
in thousands
Years
Ended
December 31
2012
Cash flows
from operating
Net income
Adjustments
reconcile
to
forbad
Provision
Provision
net
for
customer
of property
Share-based
compensation
in
assets
Other
in
Net cash
Cash
flows
Net increase
in
cash
used in
by investing
provided
equivalents
end of period
for
interest
The
772
642
4087
of period
and cash
paid
806
1673
activities
equivalents
Cash
Cash
2204
326
245
by financing
provided
beginning
paid
150
27
exercises
fee arrangement
and cash
income
13
164
1455
option
equivalents
disclosure
332
348
46
activities
stock
used in
for
632
activities
and cash
Cash
226
400
investment
Cash
Supplemental
2041
48
5806
activities
and equipment
from stock
Net cash
by operating
strategic
of contingent
1022
activities
from financing
Payment
628
liabilities
investment
Repurchase of common
Net proceeds
67
assets
756
of property
Purchases
492
provided
long-term
391
liabilities
liabilities
short-term
131
833
assets
from investing
in
2106
164
910
revenues
Net cash
2162
132
investment
expenses
Non-current
416
activities
payable
Deferred
Change
and
non-current
Accrued
flows
by operating
1387
and equipment
strategic
expenses
Accounts
Change
provided
receivable
Accounts
Prepaid
net cash
credits
Write-down
Changes
to
debt
Gain on long-term
Cash
income
and amortization
Depreciation
2011
activities
of cash
flow
11209
15296
333
22
2390
8819
11209
information
taxes
accompanying
355
notes
are an
integral
part
F-7
of these
consolidated
financial
24
84
300
312
statements
AUTOBYTEL INC
TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES
and
Organization
Inc
Autobytel
automotive
programs
The
Companys
Autobytel.com
ability
Leads
provide
these
provide
submit
to
these
consumers
who may
consumers the
consumers
The
was
Company
Inc
Autotropolis
On
NASDAQ
Capital
stock
split
was
stock
derivatives
Stock
was
continued
July
the
share
occurred
of
price
of
as
the
and was
current
anticipated
operating
in
industry
cash
needs
Summary
Basis
for
and
liabilities
depreciable
the date
warrant
the
Vehicle
Company
Websites
Companys
entire
to
financing
mission
of
lifecycle
for
their
Cash
and
the
Cash
in
considers
costs
payment
For
all
the
for
that
believes
to
cash
and
for
at
Capital
at
in
31 2012
cash
the
will
economic
On
Market
compliance
Company
has
Based
on
improve from
conditions
sufficient
are
per
with
compliance
million
flows
equivalents
$1.00
least
Capital
of $280
the
reflect
NASDAQ
regained
deficit
cash
to
Stock
of
not
common
the Reverse
had
the general
the next
least
was
the
shares
other
NASDAQ
December
net operating
its
The
price
Company
accumulated
related
current
on The
and
for
with
Company
common
par
on The
basis
adjusted
reason
$0001
stock
options
Cybers
17 2010
adjusted
the
been
bid
closing
the
that
ended
year
had an
expects
consolidated
transactions
and the
to
meet
months
12
amounts
of
of
provisions
expense
liquid
asset
debt
Actual
and
amounts
valuation
F-8
with
and
debts
valuation
differ
Balance
original
customer
and
Sheets
the
of
during
for
of
conformity
Company
to
assets
the reporting
useful
credits
lives
intangible
deferred
of
asset
tax assets
estimates
maturity
Company
contingent
purchased
allowance
from those
in
statements
requires
and expenses
goodwill
the
consolidation
in
and disclosure
and
of
accounts
financial
of revenues
could
an
of
liabilities
bad
for
the
eliminated
U.S GAAP
impairments
results
been
preparation
assets
of the Consolidated
investments
have
America
to allowances
long-lived
include
statements
The
States
purposes
highly
financial
and balances
Statements
the United
statements
compensation
Equivalents
Company
Company
and uncertainties
contingent
and stock-based
valuation
Flows
liabilities
from trading
the
of
all
compliance
the
Split
value
primary
minimum
Stock
31 2012
Company
the reported
affect
software
capitalized
flow
of Financial
accepted
financial
include
maintain
to
Split
have
presented
The
Stock
and
amounts
presented
delisting
expenditures
capital
periods
maintain
informed
the par
in
share
Cyber
September
Companys common
the
Irvine
of privately-held
assets
collectively
beginning
post-Reverse
change
of the
all
in
ABTL
symbol
Policies
the Preparation
of the
estimates
and
assets
accrued
valuations
Cash
at
Significant
possible
of
split
per
all
order
in
the
substantially
on
no
and
the Reverse
risks
accompanying
that
was
stock
Company
All intercompany
generally
and assumptions
estimates
period
in
many
the
and
capital
The
subsidiaries
principles
face
Accounting
of Presentation
wholly owned
to
stock
cash
the
stock
period
December
at
reverse
there
under
statements
financial
earliest
to
staff
2013
for
however
working
of Significant
accounting
make
continues
to
positive
and
flow
plan
particular
Use of Estimates
with
cash
the
Prior
subject
achieved
Company
The Company
levels
its
and
vehicles
corporate
Market
Florida corporation
for
common
Requirement
acquired
Inc
prices
common
the
that
Company
All share
exercise/conversion
requirement
negative
Since
principal
Its
Capital
1-for-5
dividend
stock
17 1996
common
of the
12 2012
requirement
experienced
the
implemented
on
had
it
Bid Price
listing
Companys
automotive
and
the
the
throughout
website
flagship
offer vehicle
The
online
decisions
leasing
may
that
Leads
consumers
NASDAQ
consolidated
Trading
their
per
listing
Although
2012
sources
Finance
engaging
Ventures
Cyber
historically
the
by
lending
or other lenders
its
purchase
or
and
services
including
automotive
purchasing
conventional
Dealers
and
products
their
regarding
financing
on May
Date
Split
reverse
though
as
Split
continued
with
vehicle
on The
Companys
Company
began
as
including
Minimum
July
loans through
Advisor
listed
and
the
in
the
Market
effective
increase the
to
Markets
share
consumers
the
marketing
them with
aid
to
requesting
Delaware
is
corporation
Stock
Reverse
stock
Acquisition
included
are
11 2012
July
per share
this
Florida
of operations
Split
secure
regarding
in
incorporated
On September 17 2010
Reverse
to
inquiries
Automotive
Lifetime
California
value
contact
tools
Dealer
Company Websites
websites
and
to
able
submit
to
Leads
referrals
services
that
assists
company
market and sell new and used
marketing
Manufacturers
needs
automotive
results
Dealers
automotive
an
is
manufacturers
information
consumers
the
Your
be
lead
not be
ability
contact
to
to
is
automotive
automotive
with
requesting
inquiries
consumers
For
and
consumer-facing
consumers
Company
the
or
Dealers
for
online
programs
and data products
its
through
advertising
Autobytel
dealers
retail
vehicles
Operations of Autobytel
90 days
or
less
Statements
at
the date
of
of
and
be
to
purchase
cash
recorded
are
which
Cash
Restricted
search
certain
engine
features
technology
The Company
investment
because
the
and
Company
the
on
The
$823000
payments
amounts
Accounts
and when
credit
are recorded
current
to
estimated
allowance
expenses
bad debts
As
The
the
credits
allowance
written-off
there
If
allowances
bad
for
loss
can
be
each
sales
individual
The
matter
for
tax
$175000
accrued
Company
Gain contingencies
connection
with
Fair
defined
under
liability
Value
of Financial
an
exit
price
based
to
of
observable
on three
measure
fair
of inputs
value
which
credits
that
ranges
the investment
financial
estimate
bad
of
in
condition
write-off
decrease
debt
bad
for
the
percentages
Reductions
in
and
sales
estimated
established
expense
allowance
receivable
as
the previously
be
that
ii
the
in
marketing
allowance
for
that
with
with
the
on
impact
the
the
are
in
based
are rendered
the estimated
are
they
on revenues
no impact
their
customer
and
are identified
credits
affects
negatively
dissatisfied
are
the
services
after
Reductions
customer
credits
meet
not
of revenues
of time
expectations
specific
customer
do
that
reduction
as
the length
future
As
and
required
of
condition
financial
services
of
the
additional
estimated
business
results
Companys
through
2011
as
of
if
in
by the
New
York
28
2011
and
31
2011
necessary
matters
outcome
any
Department
State
is
realize
the
awaiting
are
the
material
of Taxation
of
present
to
Any
audit
sales
tax
for
The
audit
incurred
fees
legal
the
after
Finance
and
this
of
of
developments
states
the
related
amount
determined
is
new
results
liability
the revenue
and
The
ranges
potential
contingencies
are
claims
other
as
probable
there
if
well
as
is
these
for
the future
the estimated
as
to
these
unfavorable
required
The Company
as the
records
exchange
most advantageous
The
Company
first
two
price
uses
are considered
F-9
financial
its
that
market
of
in
incurred
standards
or
an
may change
February
December
elements
all
when
and
proceedings lawsuits
to
subject
outcomes
or
allowances
June
be
may
of allowances
ended
expensed
of which
iv
and
for
services
for
issued
revenues
judgments
levels
recorded
share
share
claims
the estimated
historical
as
rata
rata
on receivables
an
accounts
are recorded
environment
contingency
in
Instruments
and
to
of
adjustments
credits
time
in
Company
the
amount
the principal
outputs
of
of customers
may
adverse
loss
until
accounting
in
is
aging
are
against
allowance
economic
audited
the year
are
contingency
estimated
of
the
at
increase
number
2003
in
the applicable
known
amount
December
on
current
recoveries
customer
amount
as an
time
The
was
Company
the period
the
pro
the pro
to
customers
charged
bad debts
such
investment
Additions
factors
entity
merger
material
any
The
case
are based
estimate
for
credits
be
records
estimated
reasonably
of each
analysis
in
The Company
losses
probable
an
is
the
the
to
of
for
services
for
an
cost
at
initial
its
receive
to
made
another
the
the Driverside
reduction
of the
not normally
allowance
general
in
time
likelihood
13.0% return
is
with
of
indemnification
complete
on an evaluation
Interest
pay
cash
subsequent
of
could
From
the
assesses
within
allowance
customer
condition
Contingencies
Company
and
debts
financial
or
operations
the
to
expenses
established
in
customers
as
content
Driverside
represented
entitled
post-closing
recorded
based
The
concerns
factors
increase
or an
customers
and
are recorded
decline
is
customers
Companys
iii other
credits
the previously
against
Credits
credits
experience
issued
are
customer
for
Company
satisfy
of
set
expenses
customer
historical
Customer
to
the estimated
to
generally
not required
are identified
on operating
for
Additions
Companys
the
that
no impact
due
to
Inc
Driverside
Company
in
share
to
which
also
The
merged
rata
pro
reduction
is
in
broad
investments
$326000
of
processing
Driverside
Companys
represented
to
known
debts
which
extended
marketing
and
bad debts
allowance
requirements
on
bad
for
specific
with
and
sales
The
the
secure
with
investment
its
as
to
interest
equity
efficient
2011
In
the
received
Company
established
income
or refusal of
inability
environment
business
is
for
from the
result
is
collateral
by the Company
use
2012
in
consumers
recorded
was recorded
in
for
Driverside
Driverside
by
the
representing
the
account
as other
Credit
extended
achieved
received
recorded
2012
to
Driverside
Company
of the transaction
In
escrow
$326000
Receivable
is
Allowances
could
debts
the
Driverside
that
from an
over
5%
provides
related
in
stock
The
of $823000
closing
milestones
for
of deposit
certificate
was redeemed
Driverside
programs
$16737
influence
significant
sheet
by the Company
than
less
acquired
and
million
$0.4
of deposit
million
$1.0
preferred
for
payment
at
held
certificate
services
2011
balance
upon
Of
from $0-$106000
for
of Series
in
received
released
any
if
shares
cash
The
Company
company
have
not
consolidated
Companys
of contingent
of
does
received
Company
the
the
held
amounts
represent
value
activity
systems products
Driverside
in
Company
consideration
the
traded
1352082
received
2010
2010
August
equivalents
fair
SEM
non-publicly
tools
additional
December
In
In
and cash
approximates
marketing
Investments
Driverside
Cash
equivalents
cost
at
for
the
valuation
inputs
observable
and
assets
would
be
asset
received
or
techniques
The
for
liability
to
standard
and the
liabilities
last
an
at
fair
in
measure
describes
an
value which
or paid
asset
orderly
fair
to
is
transfer
transaction
value maximizing
fair
unobservable
value
that
hierarchy
may
be
used
Level
Level
other
Inputs
assets
or
Level
by
for
that
prices
that
are
inputs
part
of the acquisition
date
active
other
or
term
full
of what
best estimate
The
or indirectly
directly
not
substantially the
for
liabilities
either
are observable
managements
include
assets or
identical
markets
in
market data
measurement
the
at
markets
Level
observable
Inputs
liability
than
quoted
liabilities
corroborated
active
in
Quoted prices
of the
such
inputs
assets
would
market and
the
in
prices
observable
are
for
similar
or
can
be
liabilities
or
market participants
are unobservable
as quoted
that
in
use
the
pricing
the
to
significant
asset
or
instruments
valuation
The
Date
The
of
value
fair
outcomes
of
The
measurement
Cash
have
believes
management
Company
held
and cash
Cash
receivable
Accounts
The
concentration
was
revenues
related
to
three customers
these
2012 Urban
In
2011 no
three
to
operating
are recorded
Reimbursed
leased
of
tenant
for
Capitalized
internal
require
incurred
use
the
14% of
for
in
or
During 2012
19%
in
are carried
at
potentially
subject
and
the United
cost
accounts
behalf
of
accounts
States
Deposits
redeemed upon
Manufacturers
be
may
deposits
approximately
or $2.0
that
and automotive
on
as
changes
receivable
Audi
26%
balances
Mercedes-
Infiniti
of the
Companys
million of gross
accounts
receivable
total
and
revenues
10% of
total
accounts
receivable
Companys
balances
the
of
activities
with
external
development
coding
are
and
testing
capitalized
the
accumulated
less
cost
at
over
is
The
from
due
31 2011
estimated
provided
lives
useful
the
using
of the improvements
or losses resulting from the retirement
office
with
space
options
rent
and
the
and
or
of the respective
method
maintenance
of property
sale
and
depreciation
lives
straight-line
Repair
lease term
not included
Internal-Use
Software
computer
The
it
is
software
probable
Training
that
F- 10
the
costs
such
the term
initial
The
and
over
the
costs
are
and equipment
stage
expenditures
is
agreements
are amortized
and
initial
Lease
the
renewal
term
costs
capitalizes
Costs
to
costs
characterized
by software
expensed
in
as
additional
develop
Topics
development
result
over
of
possession
of the lease
costs are
will
lease
terms
Development
website
and maintenance
lease
Company
Website
development
application
installation
Costs
and
the
operating
lease
rent expense
on the date of
begins
in
under
original
basis over
straight-line
Development
stage
if
on
of the
straight-line
determining
The
equipment
office
on expiration
Website
internal
and
in
term
expense
and certain
renew
to
basis
Use Software
revenues
stated
method
improvements
useful
or the lease
recognizing
total
December
are
equipment
straight-line
are considered
lives
accordance
enhancements
leases
2015
of
as of
respectively
expenses
lease-by-lease
the application
and
the
Gains
Company
10%
than
of leasehold
incurred
useful
Internal
capitalization
during
and configuration
upgrades
on
software
and
Volvo
approximately
receivable
or the estimated
through
of
greater
using
improvements
purposes
are considered
as
The
dates
estimated
their
property
periods
provided
income
Leases
for
accounts
total
Amortization
expenses
expire on various
the shorter
accounted
Property
lease term
as operating
Operating
which
is
years
of the remaining
charged
of the
Equipment
Depreciation
generally
shorter
and
acting
Applications
of
investments
in
related
industry
as well
rate
result
instruments
instruments
Dealers
Level
31 2012
accounted
10%
for
and
Property
assets
automotive
its
Science
customers and
three
Applications
customer
AutoNation accounted
amortization
Science
with
risk
Volkswagen
Toyota
December
at
credit
automotive
to
in
The
Simulation
as
equivalents
Generally
included
represents
liabilities
of these
these
the
in
changes
was
change
institutions
financial
deposits
billed
cash
$526000
31 2012
of December
In
Subaru
from these
derived
of
General
AutoNation
from fees
and
two
with
such
for
of the
Financial
Customers
thus
margin growth
gross
maturity
for
Carlo
minimum
and accrued
payable
of cash
and
of
weighted
Date was
which
Monte
consideration
the period
in
accounts
primarily
provided
derived
are primarily
has
Company
with
particularly
receivable
insurance
and
contingent
of the short-term
maintained
are primarily
of
consisted
contingent
the Acquisition
the probability
Cyber
using
of
account
to
of
market
the
index
the
and
targets
of 2010
quarter
in
of Income
SignIcant
to
the
included
estimate
an
as of the Acquisition
was estimated
rate
of
for
of the acquisition
Simulation
close
value
fair
consist
risk
credit
equivalents
demand
as
of
Carlo
because
Due
Risks
third
observable
allowance
net of
value
fair
and
not
volume
in
the
Date
Acquisition
recognized
arrangement
result
as
on the Statement
receivable
Risk
concentrations
to
Lead
effect
was
consideration
Monte
the
changes
approximates
of Credit
Concentration
the
accounts
equivalents
since
recognized
inputs
applying
Future
material
value
fair
significant
in
assumption
consideration
of the contingent
on
based
of
quarterly incremental
could
inputs
significant
value
fair
the
on
Cyber
liability
based
$155000
of
Date
of the contingent
consideration
key assumptions
distribution
triangular
value
additional
is
the Acquisition
consideration
fair
The
the expected
for
which
an
Income
of
On
the contingent
for
measurement
value
values
The
recorded
the Statement
fair
flows
as
paid
million
of the contingent
Company
range
$1.0
to
up
on cash
discount
consideration
total
consideration
which
respectively
incurred
design
while
functionality
of three
use software
internal
Capitalized
to
five
website
Capitalized
years
the estimated
method over
development
useful
development
The
assets
the
that
future
amount
the carrying
of the assets
and estimates
of
December
31 2012
The
impairment
to
Goodwill
for
Testing
carrying
the
to
Company
of the implied
loss
is
be
may
of
of
fees
traffic
line
automotive
of
be
tax
assets
Deferred
assets
in
realization
on
valuation
the
to
Cyber
that
value
fair
and
be
if
of
results
At
acquisition
$68000 impairment
but recorded
If
the
assumptions
could
that
on
for
process
many
condition
assets
long-lived
recorded
determined
their
based
disposition
is
includes
financial
related
to
subject
2012
in
charge
value
enterprise
or
circumstances
fees
amount
of goodwill
for
lead
fees
programs
in
basis
of goodwill
ampunt
the acquisition
of
impairment
on an annual
the carrying
and
value
fair
goodwill an
Cyber and as
of
used vehicles
finance
and
advertising
exists
arrangement
from the
assets
and
impaired
the calculation
performance
the enterprises
potentially
minimum
new
for
compare
that
to
of
impairment
goodwill
at
related
goodwill
Lead
display
of an
evidence
suggest
in
net
value
fair
for
step requires
of enterprise
goodwill
million
Companys
the
in
canying amount
is
second
and intangible
tangible
to
goodwill
The
any
if
all
buying
Company
the
the
over
acquisitions
of enterprise
value
step requires
enterprise
in
$11.7
business
for
price
the
evaluates
of vehicle
when
to
tax
is
pricing
Lead
fixed
and
determinable
tax
rates
includes
amount
liabilities
tax
The
the
it
to
apply
effect
believes
is
because
is
an
to
finite
and
to
their
taxable
date
more
tax
The
likely
as
recognized
the deferred
tax
the
liability
bases
tax
the years
and
assets
not
to
be
period
liability
F-li
will
records
valuation
and
on
for
data
and
parties
server
fees
sometimes
Deferred
tax
costs
connectivity
between the
change
portals
referred
tax
financial
and
assets
and
assets
statement
liabilities
temporary differences
in
to
website
to
those
Lead
revenues
license
SEM
method
which
of
liabilities
third
technology
Deferred
in
of
provided
internet
properties
traffic
differences
income
to
websites
drive
to
engines
temporary
in
and
are
other cost
including
fees paid
expense
respective
indefinite
an
carryforward
and
Companys
under
to
Company
than
asset with
loss
taxes
attributable
on deferred
enactment
related
there
assets
liabilities
expected
or settled
income
for
and
costs
on the Companys
the
to
services
the periods
providers
SEM
related
on search
on keywords
accounts
of
included
related
directly
over
acquisition
consists
activity
tax consequences
and
traffic
websites compensation
of bidding
jurisdictions where
of deferred
SEO
the practice
assets
and
as revenue
Companys Lead
the
to
of revenues
cost
Companys
Company
of Lead
made
amortization
existing
an
Other
the future
are recognized
consists
optimization
the
The
that
revenues
technology
for
recovered
the period
to
is
Taxes
deferred
than
less
is
of
value
fair
represent
of payments
providers
and
recognized
amounts
in
revenues
of revenues
engine
marketing
Income
income
Cost
related
depreciation
to
remaining
the carrying
or changes
consist
Deferred
costs consist
search
costs
paid search
expected
loss
and
exist
impairment
eventual
their
to
any
is
criteria
information
development
carrying
assets
assets
the carrying
first
the recognized
in
fees
purchase
The
recognized
and delivery
the service
recognition
including
are
the
events
revenues
recognizes
acquisition
liabilities
for
based
Companys
the
2011
in
and
is
amortization
Judgments regarding
of the long-
assets
model which
these
of intangible
evaluates
The Company
were no changes
Advertising
of Revenues
Cost
and
equipment
write-down
on
the
assets
there
if
revenue
content
life
straight-line
impairment indicators
that
determined
flow
to
Company
Lead
the
than
less
is
of goodwill
whenever
the
assured
reasonably
are displayed
GAAP
cash
million of
$1.5
of
by customers participating
paid
the period
in
revenues
useful
performance
flows an impairment
generally
effect
million
process
by deducting
value
fair
year or
there
Company
is
value
fair
second step
the
Recognition
Fees
The
collection
as
each
subscription
is
will
any impairment
two-step
the difference
to
31 2012
fees
request
the
If
During 2010
Revenue
cash
discounted
The Company
is
of goodwill
equal
quarter
Fair value
recoverable
assesses
adverse
the excess
acquired
the implied
If
impaired
December
and/or
value
unit
recognized
the fourth
value
completes
fair
the reporting
using
accelerate
to
and operational
conclude
Company
need
or the
not be
may
to
undiscounted
using
approximately
The
result
future
$4.5
of goodwill
fair
its
then
had
Company
value
to
material
represents
liabilities
impairment
value
the
determine
to
assets
long-lived
assets
market conditions
the
cause
fair
value
recorded
Company
Goodwill
and
assets
have
could
Company
estimated
an
are amortized
asset
long-lived
identifiable
fair
assets
reviews
canying value
is
Company
the
could
their
its
the
factors
legal
expected
of these
value
the
placed
periodically
that
estimated
its
amount over
fair
2010
During
events
flows
exceeds
the valuation
Once
operations
cash
asset
Any write-down
necessary
related
an
carrying
estimate
an
provides
future
of
on
determine
to
undiscounted
service
in
impairment of these
the
indicate
are based
Future
be reviewed
should
assets
the estimated
excess
indicators
Company
assesses
circumstances
in
changes
of impairment
the existence
lived
or
method over
straight-line
life
impairment of these
whenever
once
costs
the
using
tax
allowance
rates
if
is
recognized
necessary
to
are
are
in
reduce
realized
useful
will
life
goodwill
ordinarily
not reverse
not serve
until
some
and
as
indefinite-lived
source
indefinite
intangible
of income
future
period
for
the
when
the asset
to
of
per share
shares
outstanding
shares
consist
as determined
of common
shares
shares
using
the
the treasury
issuable
weighted
the conversion
amounts
utilized
to
net earnings
common
shares
outstanding
Weighted
average
common
shares
repurchased
Weighted
average
unvested
restricted
Basic
method
the
during
common
options
and
the basic
shares
Basic
their
over
free
stock
Business
defined
reportable
million
Impairment
for
Plans
Awards
over
generally
with
options
value
is
closing
was
in
Company
stock
of diluted earnings
per
for the
share
for
in
Note
forfeitures
on
estimated
respective
on
based
the grant
date
as
awards
vesting
Awards
the
The
basis
line
straight
period or on
under
Company
accelerated
an
basis
conditions
date
on
option
described
stock
fully
net of
value
awards
grant
more
are
performance
the
on
and
stock
that
fair
the
estimated
price
costs are
within
business
its
the
using
market price
quoted
the Black-Scholes
the expected
and
expensed
the United
term stock
Companys
operating
characteristics
in
the period
and
States
The
services
marketing
similar economic
upon
Advertising
million
conducts
and
automotive
of the Companys
option
price
pricing
model
and
volatility
risk-
within
operations
as well
incurred
business
one
as similar
Advertising
segment
into
are aggregated
single
markets
2012
in
expense
and
2011
respectively
Goodwill and
Standards
2012-02
issued
indefinite-lived
basis
of common
million shares
2.3
options
Pronouncements
ASU No
qualitative
the
measured
fair
stock
The
Expense
and $0.8
Accounting
consistency
dilutive
and warrants
options
and
2.5 million
restricted
grants
the
on
is
for
is
segment based
operating
Accounting
for
value
included
securities
dilutive
were excluded
Company
Plans
based
periods
common
Segment
Intangibles
Update
The
option
as providing
Advertising
was $1.2
Recent
fair
342680
9536227
rates
interest
is
9193547
which
periods
included
approximately
respectively
compensation
on the underlying
which
effect
performance
Restricted
would
dilutive
average
securities
representing
compensation
service
requisite
8995819
207709
weighted
dilutive
average
Compensation
share-based
the
9193547
securities
312012
securities
share-based
the estimated
based
the years
for
10102
8995819
9203528
because
over
dilutive
December
dilutive
December
Share-Based
common
share
per
233998
Shares
31 2011 weighted
Potentially
recognizes
of
9203649
___________________
average
its
upon
2011
stock
Shares
Dilutive
of
common
the exercise
Shares
Weighted
several
the
using
Potential
period
issuable
9229817
Shares
Diluted
periods
computed
is
payable
compute
average
Weighted
these
share
per
2012
ended
related
15 years
Shares
Basic
years
million over
31
December
ended
$10.3
restricted
stock
Diluted
any unvested
and if dilutive potential common
shares
of common
if-converted
of note
of
31 2012
Basic
of stock
the exercise
upon
upon
and
of goodwill
million
$11.7
period excluding
number
average
recorded
basis goodwill
December
at
the
during
stock
tax
amortizing
$620000
outstanding
under
issuable
of
liability
is
shares
following
Company
the
tax
Diluted
computed
is
and common
The
ended
and
number of common
average
warrants
deferred
of Basic
Computation
net earnings
in
resulted
impairment
to
Cyber
weighted
down due
or written
sold
is
the acquisition
The
factors
to
determining
Intangibles-Goodwill
assets
by
it
is
this
and
it
necessary
Other-General
ASU
is
among
is
to
more
Other Topic
reduce
how
an
long-lived
likely
perform
Intangibles
to
than
350
the cost
entity
and
tests
not
that
than
F- 12
an
those
of
assets
The
for
ASU
indefinite-lived
The
July
complexity
impairment
Goodwill
In
2012 Accounting
Indefinite-Lived
Testing
asset categories
the quantitative
Other
Other
Goodwill and
Intangibles
simplifying
guidance
whether
determine
and
of
objective
testing
whether
350
Codflcation
Intangibles-Goodwill
intangible
impairment
Other
test
performing
intangible
in
an
accordance
more-likely-than-not
an
and
with
to
to
entity
asset
for
test
impairment
impairment
permits
Standards
Assets
Intangible
is
impaired
Subtopic
threshold
improve
first
is
assess
as
350-30
defined
as
likelihood
having
assets
intangible
If
the
fair
of
50 percent
more than
on
impairment
for
of the intangible
value
at
asset
asset
intangible
ASU
This
The
is
unless the
effective
did
Company
not adopt
Balance
Selected
carrying
Under
any
that
it
ASU
this
amount
more
is
ASU
this
than
likely
then
not
that
test
may
its
amount
carrying
the
its
fair
value
ASU
of
to
the
amount
carrying
15 2012
September
after
the
adopt
indefinite-lived
must be performed
than
less
is
years beginning
Company
test
with
calculate
to
value
fair
its
fiscal
to
entity
asset
step of the
not required
is
for
but the
of the
the second
entity
an
required
value
fair
the
performed
tests
was optional
since adoption
an
350
Topic
by comparing
basis
its
under
guidance
annual
for
than
if
loss
determines
entity
annual
less
is
Previous
an
least
the future
in
Accounts
Sheet
Property
and Equipment
Property
and equipment
consists
of the following
As
December 31
of
2011
2012
in thousands
and hardware
software
Computer
internal
capitalized
and
Leasehold
892
depreciation
and Equipment
As of December
million
ended
respectively
ended
31 2012
December
Driverside
features
tools
12280
12620
$1593
$1629
related
expense
to
recorded
was
million
$0.1
use software
expense related
million
$0.2
amount
to
and
cost
and
million
million
million
was
and
$0.8
$0.8
$0.6
and equipment
cost of revenues
was
was
equipment
of revenues
property
in
of amortization
net
property
in
recorded
was
Company
the
and
Company
Companys
of
contingent
of
amounts
from $0
Driverside
any
$106000
upon
Of
the
for
of
Series
2011
payment
at
balance
from an
$326000
$823000
of
closing
In
achieved
escrow
as other
in
The
over
2012
by
the
in
representing
The
to
income
F- 13
the
the
$0.7
was
million
million
$0.6
its
as
and $0.9
the year
for
recorded
the
for
in
year
was recorded
in
Driverside
Company
post-closing
recorded
as
share
entitled
to
with
of the
receive
complete
initial
reduction
to
an
cost
entity
merger
investment
pro
rata
share
the pro
rata
share
its
claims
indemnification
at
another
the Driverside
represented
to
made
Driverside
in
merged
rata
reduction
also
of content
set
The Company
investments
pro
Inc
Driverside
broad
investment
$326000 which
is
in
with
consumers
the
2011
In
interest
equity
efficient
Companys
received
satisfy
for
recorded
was recorded
Company
established
to
Driverside
Company
Driverside
provides
related
Driverside
of the transaction
account
received
stock
5%
than
Driverside
programs
preferred
influence
sheet
milestones
and
$16737
for
less
acquired
million
$1.0
services
significant
received
$823000
released
in
have
cash
consolidated
payments
if
not
received
The
consideration
does
company
shares
Driverside
in
Company
the
systems products
1352082
investment
2010
traded
non-publicly
technology
because
the
this
internal
capitalized
and amortization
August
In
received
Company
additional
on
amount
this
14249
expenses
Investments
the
Of
31 2011
December
operating
The
Of
13873
net
and amortization
Depreciation
expenses
operating
Depreciation
942
and
amortization
Property
1272
1252
improvements
LessAccumulated
$12035
$11729
software
use
and equipment
Furniture
that
ranges
the investment
in
the estimated
Company
identified
estimated
useful
The
Assets
Intangible
over
useful
$4.5
Company
of
lives
amortizes
the assets
of intangible
million
identified
specifically
connection
In
with
the
The Companys
assets
intangible
of
acquisition
assets
intangible
assets
will
the
using
Cyber
be
on
the
method
straight-line
Acquisition
amortized
over
Date
the
the following
lives
December
31 2012
Accumulated
Intangible
Trademarks/trade
Software
Estimated
Asset
Useful
names
and publications
Customer
relationships
Employment/non-compete
Gross
Life
Net
Amortization
years
$5540
$5023
517
years
1300
992
308
years
1870
1427
500
229
$9210
$7671
years
443
271
agreements
Amortization
expense
for
intangible
expense
assets
included
is
for
the next
in
five
and
Depreciation
is
years
as
amortization
in
the
Statement
$1539
of Income
Amortization
follows
Amortization
Year
Expense
in thousands
2013
$1036
2014
284
2015
208
2016
2017
$1531
Goodwill
represents
assessed
be
The
the excess
annually
recoverable
for
recorded
Company
of the purchase
impairment
The Company
did
or
price
whenever
not record
$11.7
over
the
events
million
fair
in
value
goodwill
of net
or circumstances
F- 14
related
assets
indicate
to
goodwill
to
acquired
that
as
the
of Cyber
acquisition
Goodwill
the carrying
of December
value
is
not
Goodwill
amortized
of such
assets
and
may
is
not
Accrued
Expenses and
Other Current
As of December
31 2012
Liabilities
expenses
of the following
consisted
liabilities
As
of
December 31
2012
2011
in thousands
and related costs and professional
Compensation
Other
accrued
Amounts
for
note
Acquisition
Date was
used
in
Note
is
Interest
Note
Convertible
Note
as
an
to
be paid
the event
of
interest
at
the
the lower
consist
headquarters
of
additional
two
2843
approximately
The
legal
Note
rate
terms
one-year
of
under
Convertible
events
change
due
immediately
of the
to
right
of the
holders
price
and unpaid
of $4.65
per
convert
the
of the Company
control
in
the
As
balance
outstanding
The
the
paid-in capital
the
conversion
of
as
assumptions
77.5%
of
outstanding
the then
at
Key
as additional
30 2013
subordinated
Note
method
volatility
entire
stock
similar
become
will
price
premium
September
common
convertible
the
pricing
increments
other
permissible
non-cancelable
This
terms
in
lease
excess
in
office
an
space
finance
feet
Company
under
equipment
of leased
feet
square
The
feet
square
office
located
Companys
5449
approximately
Years
square
available
option
rentable
on leases with
payments
26000
approximately
and occupies
Troy Michigan
for
of the Convertible
issued
of
The
after
the event
in
4994
and
In
and
payable
will
law
applicable
Contingencies
extension
three-year
the term
per year
accelerated
is
5377
stock
the
share
and
combinations
and certain
Company leases its facilities
2015
The Companys headquarters
are
through
with
and
8%
At any time
of the Companys
paid shares
and
installments
quarterly
180
509
option
recorded
40000 minimum
in
dividends
balance
unpaid
in
15.0%
of
Company
the
149
375
value
fair
binomial
using
30 2015
of the Company
stock
2221
Company
the
The
sellers
estimated
6%
of
of Cyber
the
market yield
September
stock
to
premium
rate
on
into
2084
2847
Leases
Operating
The
entire
of
or
was
included
full
liabilities
acquisition
Note
valuation
interest
splits
common
into
Commitments
dates
Note
the
substantial
in
all
stock
for
default
Note
annual
convert
with
This
with
at
may
Note
Convertible
bear
issued
Convertible
million
Convertible
is
adjusted
connection
In
million
of the Convertible
principal
share
expenses
accrued
2006
customers
to
Total
$5.9
was
payable
Convertible
due
liabilities
$5.0
the
valuing
Convertible
expenses
Other current
debt
Long-term
promissory
fees
This
also
expires
of one
operating
The
has
offices
May
31
leases
located
in
were as follows
Tampa
in
The
on July 31 2014
an
future
in
building
to
option
which
Florida
Companys
various
Companys
office
an
with
on
expire
lease expires
are located
on July 31 2014
2015 The
which
California
Irvine
headquarters
leads operations
lease expires
year
in
building
extend
of
consists
minimum
lease
in thousands
December 31
Endin2
2013
656
2014
404
Thereafter
21
$1081
Rent expense
included
in
operating
expenses
$0.7
was
million
for
both
of the
ended
years
December
31 2012
and
2011
Employment
The
these
Company
agreements
options
in
Agreements
has
require
the event
of
employment
severance
termination
agreements
payments
of
and
retention
continuation
employment
without
of
agreements
certain
cause
or
insurance
for
with
certain
benefits
and
key
employees
acceleration
number
of vesting
of
of stock
reason
good
Litigation
From
business
time
activities
to
Such
litigation
even
may
if
be
involved
not meritorious
in
other
could
F-IS
litigation
result
in
matters
substantial
arising
costs
and
diversion
of resources
of
its
and
Retirement
The
21
over
years of
and
age
contributions
Company
stock
and
Companys Board
the 1998
Stock
2000
be
Plan
of
day
401k
Plan
month following
of the
their
not
salaries
pretax
The
are discretionary
and independent
exceed
the
did
401k
maximum IRC
Plan
in
who
are
participating
amount
The
the years
ended
deferral
contribution
401k
Section
of the Company
Under the
make
not
under
arrangement
employees
all
of hire
date
to
salary
covers
Company
and
2010
the
issuance
Share-based
the
under
compensation
2001
Plan
2010
Equity
is
expense
Plan
in
included
Equity
at
of
awards
for
under
1996
the
and Acquisition
Related
to
the
form
employees
the
Stock
Stock
in
Incentive
Option
Plan
Plan the
Incentive
million shares
0.5
common
Company
of
stock
are
31 2012
December
and
costs
Awards primarily
provide
were granted
Stock
aggregate
Incentive
Plans
Employee
Restricted
An
these
Awards
Option Plan
Incentive
Equity
The
consultants
Restated
of
Certain
awards
stock-based
for
provide
Stock
Stock
Inducement
that
RSAs
awards
stock
under
Plans
several
future
first
100%
established
of Directors
Option
for
has
Option
granted
reserved
as
on the
The
deferred
as
qualifies
31 2011
restricted
Option
only
Stock
which
Plans
Incentive
Company
options
of
results
business
its
affect
adversely
materially
Equity
Stock-Based
The
plan
401k Plan
the
to
up
401k
the
to
StockhoLders
of
defer
December
savings
IRC
effective
is
to
could
litigation
flows
retirement
Code
are allowed
employees
in
Plan
has
Revenue
Internal
and cash
Savings
Company
outcome
adverse
an
condition
financial
operations
of the
and
attention
management
the Consolidated
in
expenses
of incomes
Statements
follows
Ended
Years
December31
2012
2011
in thousands
Share-based
Cost
compensation
and marketing
Sales
Technology
support
and administrative
General
Share-based
Amount
Total
As
of
respectively
Stock
The
life
of
options
implied
believes
The
of
of
34
225
358
288
332
356
308
compensation
and
1032
10
910
expense
December
31
2011
related
expense
of approximately
period
average
915
expense
use software
internal
compensation
stock
stock
the stock
on
The
representative
closing
option
equal
its
options
to
in
estimated
was
there
stock
1022
million
$0.8
approximately
unvested
to
1.5
This
options
and
is
expense
$1.4
million
be
to
expected
years
effect
at
Company
future
stock
to
rate
support
behavior
is
the time
life
estimates
the date
of
as
interest
the expected
common
of
is
price
risk-free
expected
period
traded
volatility
is
value
common
for
experience
to
31 2012
weighted
fair
rates
expected
46
Options
the underlying
interest
share-based
unrecognized
over
reognized
compensation
capitalized
December
of
expense
of revenues
based
of
the expected
The
has used
dividend
of an
life
States
Expected
grant
The Company
the use
the expected
United
on
of
yield
F- 16
implied
options
is
term
yield
treasury
is
volatility
historical
volatility
granted
not considered
option
stock
based
volatility
or
based
in
price
for
on
model
volatility
and
Companys
the
because
it
based
has
historical
the option-pricing
with
number
historical
experience
formula
the
historical
limited
of both
on
risk-free
consistent
term
combination
on
pricing
and
which
since
it
the
Company
is
on
based
historical
The
Company
common
stock
generally
vest
of
vesting
on
stock
without
Awards
value
per
Scholes
granted
of
share
$3.04
model
the grant
certain
and voluntary
Companys
the
and
stock
on the date
of grant
conditions
option
than
seven
and
date
termination
ended
the years
for
the
or
including
is
risk-free
Expected
life
of the
summary
ended
Expected
were estimated
plans
with
weighted
rate
years
Companys
stock
outstanding
options
as
Companys
the
and
term
The
thereafter
of the Company
control
in
weighted
2011
of
reason
good
have
to
and
31 2012
interest
used
rate
contractual
months
change
upon
by an employee
December
maximum
twenty-four
average
grant
on
based
respectively
date
the
fair
Black
assumptions
average
Ended December 31
2012
volatility
forfeiture
market value
fair
ten year
over
ratably
Years
Expected
estimated
The
the future
in
less
have
generally
of
under
accelerated
under
$2.37
option-pricing
is
of an employee
do so
to
are not
that
prices
options
anniversary
plans
on actual experience
based
exercise
at
Stock
first
options
cause
adjusted
grant
the
on
is
options
its
of
date
the past
in
and
grants
the
one-third
certain
termination
dividends
experience
2011
84%
84%
0.6%
1.4%
42
4.1
of December
the year
during
then
below
presented
Weighted
Average
Average
Weighted
Number
of
Exercise
Options
December
at
Outstanding
31
2011
1547544
Exercised
10982
1.97
Vested
307322
or expired
December
at
and expected
to
31 2012
vest
Service-Based
weighted
average
Performance-Based
performance-based
stock
and
price
value
before
2012
exercise
are subject
Options
interest
and one-third
four
percentage
revenues
date
options
and
$2.39
vesting
EBITDA
options
31 2012
fair
6.3
5.59
1559339
$6.12
5.6
$766
1529929
$6.15
5.6
$764
1130140
$6.83
5.5
$732
and
performance
161394
vested
first
on
ended
year
to
respectively
amortization
the
and $3.09
Options
requirements
and
of $2.31
the
During
$3.90
values
Performance
depreciation
of these
During
Scholes
thousands
December
certain
using
conditions
EBITDA
Performance
granted
31
2012
Black-Scholes
and
pricing
option
ii service
vested
Options
under
Company
weighted
achievement
percentage
goals
the
with
employees
stock
the
and
the
earnings
Companys
vesting
performance
will
Performance
revenues
on
fair
date
grant
The
model
Based
249199
granted
average
of 2012
vesting
anniversary
service-based
respectively
condition
twenty
thereafter
months
employees
December
grant
Options
of
two
to
taxes
and
revenues
years
Options
2012
December31
at
Value
at
December3l2012
Exercisable
Intrinsic
Term
$6.46
3.88
Aggregate
Contractual
Share
per
330099
Outstanding
options
Price
Granted
Forfeited
Remaining
with
option
the
weighted
pricing
achievement
and
ended
year
EBITDA
average
model
of
December
grant
The
2011
performance
31
date
2011
fair
Performance
revenues
145333
and
value
the
and
Options
EBITDA
Performance
Company
exercise
are
goals
Options
F- 17
price
subject
and
255407
granted
of $2.98
to
two
ii service
vested
under
and
vesting
vesting
the
Performance
$4.83
Options
Based
and
performance
on
the
vesting
certain
Black
using
respectively
requirements
to
conditions
Companys
condition
2011
and one-
of these
third
Market
Condition
2009
In
option
model
pricing
vest
additional
conditions
closing
of the grant
anniversary
be
exercise
order
in
date
be
to
price
will
During 2012
2012
with
of
The
vest
ratably over
four
twenty
$3.99
exercised
of options
of $1.97
at
is
accelerate
times
in
change
achieved
was
market condition
with
an
2012
during
the option
upon
vesting
Condition
exercise
the condition
satisfy
three
least
stock
2010
in
weighted
aggregate
and
2011
was
exercised
options
were
exercised
average
exercise
2011
during
exercised
must also
days
the
that
the option
options
of the 9206
price
options
Market
market condition
inclusive
exercise
and
the condition
satisfy
two times
will
options
2009
during
these
to
trading
the
to
equal
Black-Scholes
date
least
at
prices
using
two-thirds
must also
is
days
of the remaining
of these
$0.97
the grant
following
options
30 consecutive
exercise
at
of
granted
the remaining
trading
one-third
any
achieved
options
value
intrinsic
per
of the remaining
final
exercised
option
anniversary
addition
Certain
average
stock
first
consecutive
over
was
weighted
condition
In
Condition
were
options
total
The
aggregate
8183 market
of
inclusive
on the
any 30
stock
Condition
options
10982
an
vest
One-third
over
common
Market
Market
during
exercisable
stock
market value
employees
all
substantially
fair
thereafter
Condition
exercisable
of the Company
control
be
to
to
options
cliff
months
common
of Autobytels
price
stock
with
of these options
Market
exercisable
213650
of $1.75
date
twenty-four
of Autobytels
price
to
price
first
granted
One-third
ratably over
the closing
that
Company
on the grant
two-thirds
price
on the
Options
the
of the stock
price
vested
options
thereafter
months
and
$21000
$165000
respectively
The
Directors
Purchase
Stock
Employee
2008
Companys common
six
1996
Companys
during
month purchase
Tax
and
Plan
held
stockholder
capital
stock
stock
Series
Junior
Benefit
convert
entitled
or
to
under
determines
that
longer be
Tax
the
of
such
material
suspended
of the common
stock
to
Board
Companys
the
by
employees
eligible
shares
purchase
on the
the
be
will
Plan
was
tax
triggering
Company
at
first
stock
the
upon
Rights
of
exercise
unless
Benefit
of
price
that
date
Preservation
taxable
year
the
is
Preservation
Benefit
as
Tax
last
or
of
of
the
day of each
of
the
that
price
of the
advanced
Plan iii
Plan
is
as
Company
such
in
extended
or
the
Board
each
share
of
of
share
of
The
stock
will
Rights
and
subject
to
the
holders
will
the acquirer
except
common
stock
will
which
at
be
the
of
the close
upon the earliest
which the Rights are redeemed or
expire
at
382
or
determines
that
successor
any
statute
of the Companys
the preservation
for
necessary
limitation
that
ii
of
to
purchase
be
circumstances
certain
Plan
Companys outstanding
Companys outstanding common stock
or
the time
of Section
for
of
meeting
to
rights
Rights
may
price
more
annual
one-hundredth
common
of
Benefit
Benefit
Preservation
Plan
five
one
of the Company
shares
The Rights
Right
which
to
of
the repeal
no longer
Company
Board determines
number
right
of
rate
the
Companys
Benefit
Tax
Tax
into
agent
Preservation
shares
of 4.90%
acquisition
the
purchase
$8.00
acquire
of the
at
the
at
to
entered
rights
the
Benefit
Tax
price
or other
capital
the
instead
to
adopted
dividend
as
of
circumstances
triggered
the
Under
as
by stockholders
approved
assets
N.A
Company
of the Company
distributed
the
approved
Trust
2014
time
to
stock
Company
Directors
upon
of
certain
the
been
Tax
the
the beginning
forward or
was
acquisitions
May 26
on
exchanged
have
holder
common
the then
at
of
Stock
in
or
Rights
group acquires
market value
of business
market value
fair
of
important
its
Preferred
acquire
or future
Board
Rights
Plan
The
acquire
time has
iv
Right
to
The
entitles
Participating
right
stock
person
permitted
Computershare
Preservation
Benefit
by preserving
Preservation
exceptions
common
If
Each
into
certain
Tax
23 2011
value
and
Company
the
of the Company
common
Board of Directors
the
The
June
protect
ESPP
Plan
Preservation
Plan between
stockholders
The
of the
the lower
Plan
ESPP
Purchase
2012
in
period
On May 26 2010
Preservation
terminated
85% of
at
Stock
Employee
was
stock
Benefit
Preservation
Tax
Plan
no
Tax
Benefits
may
under Section
Benefits
if
the
Tax
Board
Benefits
be
carried
382 would
no
Company
Warrant
As
shares
of
of
and
of
the acquisition
of Cyber
common
Warrant
combinations
dividends
date
part
Company
expires
change
in
and
stock
other similar
on the eighth
control
anniversary
of the Company
on the Acquisition
events
an
at
exercise
The Warrant
of the issuance
The
Warrant
was
date
valued
F- 18
the
Date
price
of
becomes
The
at
right
$3.15
Company
$4.65
per
exercise
per share
as
on the
exercisable
to
issued
share
the
for
warrant
adjusted
third
Warrant
total
to
for
purchase
stock
anniversary
is
value
400000
splits
stock
of the issuance
accelerated
in
of $1260000
the event
which
is
recorded
free
rate
as
additional
of 2.3% stock
price
Shares Reserved
instruments
as
77.5% and
of
volatility
used an option
term
of
8.04
pricing
model with
key assumptions
the following
years
the following
shares
of common
stock
reserved
for
future
issuance
the exercise
upon
options
future
grants
Reserved
for
exercise
Reserved
for
conversion
of
under stock-based
incentive
527582
plans
400000
Warrant
of promissory
1075268
note
3562189
Total
Income
of Shares
1559339
outstanding
for
Authorized
Taxes
operations
of the following
consists
for
the years
ended
2012
December
2011
in thousands
Current
Federal
12
State
66
91
78
91
225
218
41
40
266
258
344
349
Deferred
Federal
State
income
Total
31 2012 and
tax
expense
The reconciliations
December
or issuance
31 2012
of December
Number
Stock
2011
are
rate
to
the effective
income
tax
rate
for
the years
provision
U.S
at
federal
statutory
rates
35.0%
Statetaxes
State
rate
5.9
adjustment
Non-deductible
Stock
items
options
in
Effective
federal
valuation
income
2011
35.0%
11.9
8.8
permanent
Other
Change
ended
follows
as
2012
Tax
risk-
Future Issuance
for
had
The Company
of equity
The Company
paid-in-capital
tax
allowance
0.7
2.0
34
0.4
0.7
9.2
33.2
19.9%
rate
F- 19
12.9
45.6%
31
income
Deferred
liabilities
for
Companys
financial
deferred
taxes
reflect
reporting
and
purposes
of December
taxes as
of temporary differences
effect
the
31 2012
amounts
used
and 2011
are
for
as
income
tax
purposes
amounts of
and
assets
components
Significant
of the
follows
2012
2011
in thousands
Deferred
tax assets
Allowance
Accrued
for
accounts
160
211
248
269
40350
40845
liabilities
Net operating
Fixed
doubtful
loss
carry-forwards
assets
144
assets
Intangible
Share-based
Deferred
expense
944
696
44
69
43883
44457
43883
44457
revenue
gross deferred
Valuation
Deferred
Tax
Total
assets
The
31 2011
tax
to
balance
The
to
$0.7
employed
The increase
Company
with
the
had
Company
of available
increased
million
recorded
the
evidence
the
respectively
in
deferred
its
order
in
to
31
tax
deferred
its
the reversal
Company
reflect
the deferred
reduced
reflect
At December
million
31 2012
Company
to
taxes
valuation
Company
allowance
believes
that
it
is
of
more
620
354
620
354
620
354
$43.9
million
likely
than
not
on
its
that
net deferred
these
deferred
tax
tax
realized
$40.8
million
liabilities
tax
income
on the weight
not be
will
goodwill
gross deferred
At December
Based
assets
liabilities
deductible
Net deferred
assets
tax
allowance
tax
2229
1991
compensation
Other
Total
134
of
tax asset
NOLs
asset
tax
amounts
The adjustment
2012
The federal
the
expire
to
certain
states
was
offset
by
asset related
to
attributable
resulted
Company
NOLs
net operating
related
for
had
through
in
to
that
corresponding
share-based
share-based
corresponding
federal
2031
and
state
as follows
2021
loss
carry-forwards
reduction
NOLs
of
by individuals
of the valuation
approximately
in millions
1.7
2023
2024
4.1
2025
7.7
2026
26.4
2027
15.5
2028
5.1
2029
8.6
2030
11.6
2031
1.3
106.4
F-20
as of
expense
forfeited
24.4
2022
as
of the valuation
compensation
awards
NOLS
presented
as
part
of December
of the deferred
allowance
December
that
31
are
2011
no longer
allowance
$106.4
million
and
$65.9
The
NOLs
state
expire
2031
through
as follows
in millions
2013
3.1
2014
4.6
2015
6.6
2016
21.3
2017
3.2
2028
2.7
2029
5.8
2030
11.0
2031
1.4
NOLs
California
Other
Utilization
due
Revenue
Internal
the
limit
may
limitations
not
limit
2001
approximately
$10.8
million
The
subsidiaries
and
the
to
prior
of the
million
net
state
date
the
net operating
losses
of approximately
$13.5
million
At
and
federal
these
of
stock
losses
when
whereby
attributable
to
At December
$0.3
million
the
the
and $0.2
is
stock
stock
31 2012
million
in
is
tax
to
and $8.5
options
assets
to
option
net
exclude
additional
such
and
equity
income
The
options
than
to
$0.6
tax
In
stock
to
million
incurred
associated
and
federal
capital
the
state
net
Therefore
$4.7
approximately
million
tax benefit
and
$0.1
million of
payable
losses
arising
the
reduce
Company
has
from continuing
by
with
tax-effected
the deductions
in
valuation
deductions
option
this
Approximately
were
benefits
tax
year
established
addition
are realized
income
acquisition
million per
respectively
Company
and
estimate
from stock-based
that
taxes
operating
such
rather
income
taxable
carry-forwards
taxes
relate
approximately
paid-in
time
The
income
for
respectively
the future
2013
loss
of
adopted
operations
the
to
of
For purposes
with and
prior
of
without
net operating
deductions
Company
respectively
in
million
and
operating
382
ownership changes
managements current
31 2012 As result of an
$0.5
limitation
Section
on
subsidiaries
the provision
future
annual
by
These
provisions
offset
subsidiaries
these
to
2021
in
net
such
tax deductions
until
reduce
considers
state
stockholders
to
increase
expire
as required
of approximately
limitation
to
related
to
based
December
of
and
of
the future
to
annually
2006 however
begin
federal
occur
substantial
to
subject
in
as similar state
utilized
acquisition
reduced
credited
not recorded
the
the
credited
million
deferred
expects
Company
excess
be
be
losses pertaining
deductions
option
determining
approach
Company
will
allowance
31 2012
net operating
the
date
will
respectively
December
state
benefits
excess
the valuation
that
losses
of
of acquisitions
million
such
and $0.5
the
as well
be
can
occurred
Companys
$4.1
the extent
that
operating
of
at
or
Code
the
could
that
be
may
carry-forwards
respectively
of
credit
occurred
of the
of
to
tax
may have
carry-forwards
realization
losses
and
amended
allowance
operating
65.9
ownership change
million
the
6.2
NOLs
loss
that
as
utilization
and
$5.0
1986
NOL
382
$9.9
federal
of
of
Section
does
change
Code
amount
respectively
State
ownership change
to
the
NOLs
State
Total
59.7
has
federal
The federal
and
credits
F-2
state
begin
research
and
to
in
expire
development
2021
The
state
tax
credit
credits
carry-forwards
do not expire
of
As of December
$0.5
million
31 2012
respectively
reconciliation
and
of
all
2011
which
and ending
of the beginning
had unrecognized
Company
the
if
recognized
subsequently
amount of unrecognized
tax benefits
would
have
tax benefits
of
$0.6
approximately
affected
the
Companys
and
million
tax
rate
as follows
is
2012
2011
in thousands
Balance
at
$500
January
Additions
based
on tax positions
related
to
the current
Additions
based
on tax positions
related
to
prior years
Reductions
based
related
on tax positions
to
$500
year
136
and
prior years
settlements
Reductions
Balance
The
is
Company
no longer
generated
be
will
The
The
January
and Finance
2012
in
summary
is
of
table
to
this
and
New
the next
$0
the
State
The
Companys
quarterly
data
is
2012
Basic
earnings
Diluted
loss
earnings
loss
The
entered
Company
NA
The Company
other
general corporate
may
use
6715
6335
into
the
on
Interbank
unused
the
there
benefits
tax
associated
as
with
its
and
income
tax
Department
of
for
Finance
New
the
to
York
December
31 2012
except
16705
December31
2011
Ended
Dec 31
Sep
2011
thousands
and
Jun 30
Mar 31
2011
2011
amounts
per-share
$16310
16223
6836
30
2011
6889
$15247
6572
$16032
6362
6160
571
351
551
231
253
341
446
199
0.04
0.06
0.03
0.01
0.01
0.01
0.00
0.01
0.04
0.06
0.02
0.01
0.01
0.01
0.00
0.01
an
$8.0
million revolving
as
Facility
source
to
credit
finance
Facility
facility
expenditures
capital
in
2013
February
with
stockholder
acquisitions
Union
Bank
and
buybacks
purposes
losses
not believe
Event
Subsequent
fee
6385
per share
of tax
closed
2012
$15731
per share
respectively
of Taxation
paid
Mar 31
2012
$17454
loss
unrecognized
$24000
now
ended
years
Jun 30
30
Sep
in
Net income
any
interest
Department
Company
for the
$16911
profit
the use
does
Company
Company
the
general
for
Unaudited
2012
Gross
The
on
of
Ouarter
net revenues
In
except
and 2011
Dec 31
Total
2007
months
accrued
and
$500
jurisdictions
to
years
12
penalties
York
31 2008
state
years prior
subsequent
$13000
31 2012
by the
for
in
over
accrued
December
December
through
income
interest
Company
ended
and various
States
tax examinations
tax positions
examination
Data
the United
taxable
offset
recognize
The
related
Quarterly Financial
Below
to
to
is
under
2006
in
income
state
used
the years
was
Company
tax returns
expense
in
$636
unrecognized
its
policy
tax
tax benefits
the period
Taxation
in
of limitations
statutes
31
and
be
may
changes
Companys
unrecognized
December
federal
that
of income
income
files
2007
any material
component
for
to
prior
at
U.S
to
subject
based
Offering
of
facility
Facility
will
LIBOR
Rate
bear
plus
0.10% payable
interest
1.50%
quarterly
at
at
in
the
either
the option
banks
of the
The
arrears
Reference
facility
Rate
prime
has not
been
drawn
minus 0.50%
rate
The Company
Company
also
against
or the
commitment
pays
as of
February
28
2013
The
restrictive
EBITDA
under
The
the
and
financial
tangible
Facility
Facility
contains
Facility
and
net
worth
are secured
matures
in
certain
covenants
by
February
with
and
customary representations
that
including
which
first priority
the
the
Company
Company
security
was
interest
warranties
maintain
in
on
2015
F-22
compliance
the
affirmative
minimum
with
Companys
and
consolidated
as of
accounts
negative
covenants
net liquidity
February
receivable
28 2013
and
profitability
Borrowings
and proceeds
thereof
AUTOBYTEL INC
II
SCHEDULE
Ended
December 31
2012
2011
in thousands
Allowance
bad debts
for
Beginning balance
219
355
Additions
163
130
Write-offs
114
266
268
219
321
266
391
833
554
778
158
321
Ending
Allowance
balance
customer
for
Beginning
credits
balance
Additions
Write-offs
Ending
Tax
valuation
balance
allowance
Beginning balance
Charged
Ending
credited
44457
to
tax
expense
balance
574
43883
F-23
44766
309
44457
LEFT
BLANK
EXHIBIT INDEX
Number
Description
Asset
2.1
Purchase
Revocable
Trust
Subsidiary
Inc
Amended
Fifth
Autobytel
amended
by
Amended
Restated
Amended
Fifth
of the
Certificate
of
incorporated
ended
31 2009
March
Amendment
is
to
reference
and
Exhibit
to
Restated
of
3.1
Common
Form of
Quarterly
Stock
4.2
Benefit
Tax
N.A
as
agent
of
Summary
reference
of
14 2001
2009 which
dated
July
with
filed
are
of
Certificate
10 2012 which
the SEC on July
Plan
Rights
4.1
which
Autobytel
dated
as
with
quarterly
3.1
of Autobytel
Bylaws
of
the Current
on
adopted
September
13
with
the
on Form 8-K
Report
herein
incorporated
is
ended
period
2010
May 26
of
the following
Shares
the Current
to
Restated
Exhibit
by
No
the
filed
September
by reference
2001
30
Exhibit
to
with
filed
of the
4.1
SEC
the
on
000-22239
Purchase
to
and
to
herein
is
2011 which
incorporated
SEC on April 29 2011 SEC File
27
with
filed
001-34761
the
for
No
together
Exhibit
to
10-Q
File
Preservation
rights
of
April
on Form 8-K
Amended
No
File
dated
Autobytel
reference
by
SEC
Certificate
SEC
November 14 2001
Fifth
for
and Fourth
000-22239
on Form 8-K
Report
the
August
24
April
of Autobytel
of
Certificate
Form l0-Q
on
No
File
dated
July
dated
Stock
Incorporation
of the Current
3.1
Report
Third
to
herein
Form
on
Report
of
Bylaws
the Current
of
dated
Third
1999
of Autobytel
Stock
Report
SEC
22
July
Amendment
001-34761
Amendment
and
000-22239
Quarterly
24 2009
Certificate
Exhibit
to
the
April
Restated
by reference
No
File
and
Amended
SEC on
the
of
dated
Quarterly
Exchange
10-Q
Form
2010
of
Certificate
Preferred
Participating
3.1
Second
the
and
the Securities
Bentley
Acquisition
of
2.1
Ian
inc
formerly autobytel.com
14 1998 as
filed December
Inc
Delaware
of
Preferred
with
the
Autobytel
Exhibit
to
Quarter
Autobytel
of Incorporation
Participafing
Junior
Exhibit
3rd
State
of Autobytel
Certificate
Junior
to
with
filed
herein
SEC
Amended
Third
by
Fifth
incorporated
12 2012
reference
of
of
and
corporation
filed
and
Bentley
Florida
Inc
Autotropolis
Ian
by reference
001-34761
1999
Incorporation
of Series
Designation
herein
March
and Restated
of Series
No
File
among
30 2010
September
Incorporation
dated
of
Certificate
of Designation
of
Amendment
of
Certificate
ended
by the Secretary
certified
herein
incorporated
is
SEC
Certificate
Company
Certificate
Amendment
3.2
Restated
Delaware
Inc
Autobytel
and
by
William Ferriolo
corporation
which
on November 12 2010
and
or the
and
3/1/2005
corporation
16 2010
September
Florida
for
SEC
Commission
3.1
Delaware
on Form 10-Q
Report
U/A/D
created
of
as
Inc
Ventures
Cyber
corporation
dated
Agreement
of
between
Autobytel
Preferred
Stock
Form 8-K
Report on
of Autobytel
with
filed
the
Trust
and Computershare
Form
Exhibit
exhibits thereto
of Right
Inc which is
SEC on June
Company
Exhibit
Certificate
herein
incorporated
SEC
2010
by
No
File
000-22239
4.3
by reference
File
10
No
Form
which
Adjustment Under
of
Certificate
to
Exhibit 4.3
Form
is
of Amended
is
10.4
of Letter
Amendment
10.5
SEC
to
inc
to
to
000-22239
to
5-1
99.1
is
herein
incorporated
SEC on November
the
and
Autobytel
the Current
to
Option
10.2
Plan
Option
Registration
of
Plan
Statement
to
the
the Current
Report
stock
option
directors
its
on Form 8-K
filed
is
filed
Report
2005
incorporated
with
on
the
and Option
Stock
Restricted
2012
SEC
and
officers
with
the
SEC
Form 8-K
filed
with
Plan which
the
SEC
on
8-K
with
agreements
of the September
which
2004
Form
2005
September
Statement
pursuant
10.1
certain
Exhibit
1999
between
Agreement
Exhibit
Exhibit
amending
Stock
1998
Amendment No
Amendment No.1
No
by reference
inc
No
Autobytel.com
File
to
Option Agreement
reference
Agreement
herein
Autobytel.com
7062
with
filed
001-34761
Stock
by
Indemnification
by reference
No
File
Director
herein
14 2005
incorporated
Restated
herein
SEC
of Outside
incorporated
Form
and
incorporated
September
10.3
Plan which
Preservation
the Quarterly
to
Benefit
Tax
of the
00 1-34761
on July 22 2010
0.2
11m
Section
Outside
Directors
which
is
10.8
of
Form 8-K
herein
SEC on
reference
by
February
1999
to
Exhibit
SEC
File
No
333-
Statement
which
is
incorporated
herein
by
reference
to
Exhibit
10.30
of
Number
10.6
Description
reference
SEC
lO.7
No
herein
with
10.10
No
incorporated
herein
Auto-By-Tel
l0.14
Exhibit
10.1
l0.l6
herein
10.19
Form of
herein
l0.20
10.21
Form
Stock
Form of
herein
10.23
Stock
10.24
Plan
Option
for
related
ended
dated
September
ended
which
1999
September
30
22
which
is
1999
1999
is
30 1999
September
is
herein
by reference
SEC
No
File
herein
incorporated
the
are
herein
incorporated
by
Statement
15 2000
June
which
agreements
incorporated
to
to
reference
by
Exhibit
to
of the
99.1
333-39396
SEC
File
Annex
to
No
to
the
and
333-60798
1998
is
herein
No
Agreement
to
Inc
1999
1999
Option
Plan
incorporated
herein
incorporated
No
File
herein
herein
incorporated
is
and Acquisition
the Schedule
Stock
Stock
for
by
005-58067
by reference
to
reference
to
by
Related
Stock
Option
Plan which
is
herein
by reference
to
herein
by reference
to
TO
Option
Plan which
is
incorporated
Option
Plan which
is
incorporated
the
Year
Ended
December
31 2001
filed
with
the
SEC on
to
incorporated
to
by
Director
to
Stock
incorporated
by
which
is
is
incorporated
Autobytel.com Inc
1999
Stock
is
incorporated
TO
Autobytel.com
to
Inc
1999
Exhibit
Autobytel.com Inc
2000
Stock
Related
is
Stock
incorporated
TO
pursuant
Option
herein
Plan
Stock
18
Exhibit
Incentive
1998
of the Schedule
Option Agreement
Stock
TO
reference
to
pursuant
17
1996
TO
Inc
Autobytel.com
of the Schedule
herein
Corporation
13 of the Schedule
to
pursuant
15
Auto-by-Tel
the Schedule
pursuant
Exhibit
to
pursuant
Agreement
is
Stock
Employee
10 of
Exhibit
pursuant
Agreement
Form of Non-employee
is
is
SEC
14 2001
Stock
Form 10-K
14 of
Exhibit
Stock
Plan which
Incentive
000-22239
by reference
Plan which
on
Report
Option Agreement
to
Stock
SEC on December
the
TO
Exhibit
Option
1996
with
filed
Exhibit
to
reference
by
Form of Performance
Incentive
TO
File
Option
by reference
incorporated
is
with
filed
22
September
TO
Option Agreement
l0.22
the
Option
by reference
of Stock
and
SEC on
the
Corporation
Autobytel.com
Annual
SEC
by reference
Form of
herein
by
1999
TO
Schedule
to
herein
Stock
herein
incorporated
000-22239
Plan which
Stock
Schedule
by reference
of the
of Stock
No
which
with
filed
dated
for
S-l Registration
No
22 2002
incorporated
is
SEC on November
the
000-22239
Stock
Plan
to
Autobytel.com Inc
the
to
12 of the
10.46
No
Autobytel.com Inc
the
to
No
Form
of
of the Schedule
incorporated
March
the
to
Amendment
Amendment
File
Incentive
the Auto-by-Tel
d2
No
No
1999
SEC
Option Plan
Restricted
of the Schedule
d8
Exhibit
10.1
No
d5
Amendment
with
filed
Plan
Option
of Form l0-Q
10.1
to
TO
Exhibit
10.1
No
Amendment
Plan which
Option
S-8
17 2001
Exhibit
to
Amendment
Exhibit
2001
Inc
on July
Amendment
Stock
on Form S-8
Statement
Schedule
10.1
2000
Stock
Amendment
of
No
File
Inc
Stock
Form 10-Q
of
SEC
Exhibit
to
1998
10.2
Autobytel.com
1996
10.6
Inc
Autobytel.com
reference
by
Inc
Exhibit
to
reference
Statement
Registration
10.12
the
to
Corporation
Autobytel.com
amended
Stock
on Form
Statement
Autobytel.com
by reference
Exhibit
to
Related
Acquisition
the Registration
the
Registration
10.11
the
to
Amendment
reference
of
the
with
and
Employee
10.1
333-90045
incorporated
filed
Q9
No
Amendment
filed
10.8
Exhibit
to
File
1999
inc
Autobytel.com
to
Autobytel.com
of the Schedule
Agreement
reference
to
1999
Stock
Option
Plan which
is
TO
pursuant
Exhibit
Inc
to
19
Auto-by-Tel
Corporation
of the Schedule
TO
1996
Stock
Number
10.25
Description
Amended
Inc
Autobytel
reference
to
SEC
on July 31 2003
1026
10.27
Form
of Outside
herein
November
2004
of
is
the Registration
0.29
S-8
Form
of Employee
which
0.30
is
Stock
31 2004
December
10.31
0.32
2006
by
Form
with
filed
by
SEC
the
the
10.65
Form
Inducement
Employee
of the 2006 Form S-8
with
is
SEC on
the
of
Stock
2004
SEC
Option
Exhibit 4.8 of
to
2004
333-116930
and
Stock
Plan
Option
and
Stock
Plan which
Option
10-K
Form
on
Year
the
for
is
Ended
000-22239
No
File
which
Agreement
Restricted
by reference
SEC
No
S-8
Report
No
File
herein
16 2006
by reference
File
Restricted
Annual
the
incorporated
June
Form
of the 2004
the Autobytel
to
Exhibit
4.9
is
on
and Option
Stock
SEC
2004
the Autobytel
to
pursuant
SEC
the
Form 8-K
2004
herein
28 2004
June
Restricted
2004
incorporated
is
SEC on
with
filed
8-K
of the November
10.2
Stock
Form 8-K
on
the Autobytel
to
pursuant
the
filed
2004
Exhibit
to
pursuant
to
on Form
of
with
filed
reference
Statement
S-8
Report
Exhibit
to
1999
the Autobytel
to
Stock
with
Stock
Inducement
reference
by
reference
filed
herein
incorporated
is
on Form S-8
Statement
of the Current
Option Agreement
Option Agreement
by
Registration
November
Option Agreement
herein
and
Stock
to
pursuant
10.1
000-22239
on Form S-8
Stock
herein
incorporated
Exhibit
to
herein
Restricted
incorporated
Form of
Stock
Statement
Form
Option Agreement
No
File
incorporated
Inc 2004
Autobytel
Stock
SEC
Restricted
Amendment
333-67692
reference
by
Director
Outside
Plan which
10.28
2001
Restated
No
File
Director
incorporated
Form
and
is
Exhibit
to
333-135076
2006
incorporated
herein
Form
S-8
reference
by
to
Exhibit 4.10
0.33
Letter
by reference
File
10.34
No
Letter
dated
Amended
Letter
0.37
is
by reference
Exhibit
to
Letter
dated
Agreement
March
Amended
and Restated
Ozima which
by
No
2004
Severance
Agreement
herein
SEC
by
Option Agreement
Stock
Option Plan
Exhibit
10.2
of the Current
No
Quarter
Ended
2009
the
to
2009 which
Form
Form
is
Report
dated
of the
amended
as
2008
Form
Report
dated
by
as
of
10-K
of the Current
and Glenn
on Form 8-K
with
filed
the
amended
as
are
by
incorporated
Exhibit
of the Current
10.1
and Curtis
September 29 2008
as of
to
by reference
dated
as
of
pursuant
10.82
the
to
Stock
on Form 8-K
Report
Ozima
10.81
filed
with
1998
Stock
amended
between
by Memorandum
Form 10-K
2008
the
Plan
Option
Plan which
the
SEC
and
Acquisition
on
as
of the
and
Company
Wesley
Form 10-K
of the 2008
Option
with
filed
Exhibit
to
November 15 2008
Exhibit
to
Form 8-K
on
and Wesley
Company
the
herein
Inc
Autobytel.com
30 2009
10-Q
10.77
of September 29 2008
10.4
Fuller
the
1999
October
2008
SEC
and
Employee
herein
incorporated
is
by reference
File
No
000-
8-K
incorporated
June
Exhibit
to
Glenn
and
December
Form 10-K
refeEence
Stock
Quarter
herein
incorporated
the
and Curtis
DeWalt
Company
March
Memorandum
dated
2009 which
and
between
Related
Acquisition
the
is
000-22239
are incorporated
incorporated
is
File
as
Company
as of
Exhibit
to
reference
Form of Employee
May
the
between
2008
Agreement
August
2009 which
of the
herein
SEC
2009
dated
2008
10.79
Severance
incorporated
to
with
filed
000-22239
2007
October
of December
DeWalt
SEC on March
dated
10.41
SEC
by
the
by reference
reference
No
File
as
and Restated
is
herein
Agreement
herein
dated
dated
the
10.39
Severance
2008
Agreement
Amended
between
10 2006
dated
18 2008 Memorandum
incorporated
which
0.38
which
of the Current
are incorporated
and Restated
which
Memorandum
herein
October
April
2009 which
SEC on October
0.36
10.2
dated
Agreement
March
Fuller
Exhibit
to
30 2007
000-22239
Memorandum
0.35
October
dated
Agreement
herein
filed
by
with
1999
Employee
reference
the
SEC
to
Exhibit
on
July
10.86
Related
of the Quarterly
24 2009
SEC
File
Stock
Report
No
Option Plan
on Form
000-22239
dated
0-Q
for
Second
Number
10.42
Description
herein
10.43
Amendment
10.45
10.46
incorporated
herein
Amendment
No
incorporated
herein
by
reference
the
to
and Jeffrey
Inc
Autobytel
2000
Inc
2004
to
Restricted
10.89
Inc
2006
Exhibit
10.90
Autobytel
and
Restated
Coats
which
Exhibit
to
and
2009 which
Stock
incorporated
is
Plan
Form
dated
May
10-Q
2009 which
May
dated
dated
effective
by reference
Plan
Option
2009
is
2009 which
May
is
Form 10-Q
2009
dated
Agreement
Quarter
Form 10-Q
Option
Quarter
and
Stock
Option Plan
Quarter 2009
Second
herein
incorporated
Restricted
of the Second
Stock
Inducement
of the
Employment
is
2001
10.88
Second
of the
May
dated
Form 10-Q
2009
and Restated
by reference
Exhibit
to
of April
as
Exhibit
to
10.91
of the
2009
between
Second
Quarter
Inc Amended
effective
reference
between
Quarter
Inc
Autobytel
Current
Report
and
Award Agreement
Option
which
Coats
2001
Restated
2009
April
10.93
Inc 2004
Autobytel
Second
of
as
Exhibit
to
Stock
Option Plan
is
herein
incorporated
dated
effective
by reference
as
Exhibit
to
of
2009
April
of the Second
10.92
Form 10-Q
2009
2009
Stock
and Jeffrey
Autobytel
Autobytel
dated
0.50
the Autobytel
Option Plan
Form 10-Q
Quarter
10.49
to
Stock
Quarter
Inc Amended
herein
by reference
2000
Second
of the
the Autobytel
Amended
Inc
Autobytel
between
10.48
Exhibit 10.87
to
No
2009
the
to
incorporated
is
Amendment
Autobytel
10.47
No
which
Autobytel.com Inc
to
by reference
12009
10.44
No
Amendment
of the
Restricted
Second
and
Stock
2009
Form 10-Q
2010
Equity
on Form 8-K
the
SEC
Award Agreement
Option
which
Coats
Jeffrey
herein
incorporated
is
by
Form 10-Q
which
which
Plan
with
and
Incentive
filed
2009
Stock
Autobytel
Quarter
and Jeffrey
Autobytel
Restricted
between
is
Award Agreement
Option
herein
incorporated
is
herein
incorporated
SEC
25 2010
on June
dated
by reference
reference
by
No
File
effective
of the
10.94
Exhibit
to
June
001-34761
of April
as
Exhibit
to
10.2
of
2010
Form
the
8-K
10.51
Form of Employee
which
is
0.52
10.55
No
to
incorporated
No
to
on Form 8-K
Agreement
company
Coghill
SEC
Capital
Exhibit
Voting Agreement
2010
to
to
Autobytel
Annual
Report
and
to
pursuant
10.61
of the
dated
File
No
to
2010
Equity
Inc 2010
Equity
Inc
Equity
Form 10-K
the Autobytel
2010
Form 10-K
which
officers
with
filed
10-K
Inc
Autobytel
2011
and
directors
its
on Form 10-K
Form
Plan
Year Ended
the
Form 10-K
of the 2011
10.60
Exhibit
the
to
pursuant
Exhibit
for
the Autobytel
to
of the 2011
10.59
Incentive
Equity
2011
001-34761
pursuant
Exhibit
Award Agreement
by reference
the
is
incorporated
SEC on March
10
2011
10-K
Employment
CCM
LLC
Artis Capital
by reference
SEC
to
reference
Master
and
between
Agreement
and
Autobytel
effective
Report
as
of
on
Exhibit
001-34761
10.1
dated
January
Form 8-K
filed
November 30 2010
certain
of the Current
Ltd
Fund
Qualified
Clint Coghill
of the Current
10.1
and
Management Inc
December
the
Autobytel
000-22239
herein
by
Restated
Management
No
incorporated
Form
and
between
to
by reference
between
of
No
File
2010
on Form 10-K
Report
herein
17 2010 which is incorporated
by reference to Exhibit
with the SEC on December
23 2010 SEC File No 001-34761
Capital
by reference
Standstill
Amended
filed
Standstill
File
2010
001-34761
of December
10.63
SEC
Annual
herein
Agreement
of the
Inc
the Autobytel
to
pursuant
10.58
2012
Option
herein
Stock
Employee
effective
as
herein
Stock
is
Exhibit
Exhibit
Stock
incorporated
incorporated
Amendment
herein
10.58
reference
to
SEC on March
Director
Indemnification
File
the
is
Form of
Report
10.57
Plan which
Plan which
SEC
0.56
is
Incentive
by
reference
Performance-Based
Plan which
Form of Management
herein
by
with
filed
Form of Non-Employee
Incentive
0.54
31 2011
Form of 2012
Incentive
10.53
herein
incorporated
December
Stock
of
Report
on
of
the
Islands
Current
exempted
by and
its
Cayman
Coats
Jeffrey
10.1
between
affiliates
and
Form 8-K
Autobytel
and
Artis
subsidiaries
which
with
SEC
filed
the
is
on
Number
10.59
Description
Convertible
Subordinated
to
Autobytel
of the
10.60
3rd
Warrant
Purchase
to
to
Autobytel
2000000
Shareholders
Revocable
Letter
Agreement
dated
December
reference
l0.63
Amended
Letter
and
2011
l0.65
Severance
l0.67
10.68
Agreement
20 2009
Severance
Stock
dated
reference
by
issued
by
Exhibit 4.5
to
16 2010
September
herein
incorporated
is
by and
by reference
which
is
Autotropois
among Autobytel
William Ferriolo
corporation
of the 2011
Form
issued
by
Exhibit 4.6
to
herein
incorporated
Ian
and
Bentley
by reference
Exhibit
to
Florida
Inc
the
Ian
4.7
Bentley
of
the
of
as
10-K
Agreement
herein
dated
by reference
17 2010
September
12011
December
Autobytel
dated
Benefits
incorporated
as
between
Memorandum
dated
by reference
dated
which
May 21 2007
herein
dated
Agreement
is
as
of
Exhibit
to
between
25 2011
February
10.74
of the
and
Autobytel
herein
incorporated
2011
between
Form
to
and
Autobytel
10-K
William Ferriolo
by reference
Lease Agreement
dated
October
as
amended
March
by Amendment
2009 and Amendment No
reference
to
Exhibit
10.70
Amendment
No
as
amended
Exhibit
10.75
of
by
the
15
to
the
Irvine Lease
to
Amended
to
14
2011
Amendment
No
to
and Jeffrey
Amendment
and Curtis
Amendment
and Glenn
Amendment
and Wesley
as
Memorandum
of the 2011
Form
which
is
amended
by Memorandum
dated
dated
of
2011
as
December
10-K
Autobytel
The Provider
Lease
to
dated
whichis
incorporated
dated
Fund The
February
November 29 2010
which
are incorporated
herein
by
10-K
October
Restated
31 2012
Severance
Benefits
No
to
Amended
dated
Agreement
November 14 2012
between
and
Restated
Employment
Agreement
December
dated
14 2012
between
Coats
Amended
and
Restated
Severance
Agreement
dated
October
19 2012
between
Autobytel
DeWalt
No
to
Amended
and Restated
Severance
Agreement
dated
December
14 2012
between Autobytel
Fuller
No
to
Amended
and
Restated
Severance
Agreement
dated
October
16 2012
between
Autobytel
Ozima
10.75
Amendment
No
to
Severance
Agreement
dated
September
10.76
Amendment
No
to
Severance
Agreement
dated
November
10.77
Amendment
No
Ferriolo
William Ferriolo
Form 10-K
Lease
to
Form
dated
and
12
10.77
between
12009
between
No
and
10-K
Autobytel
Autobytel
10.79
Exhibit
of the 2011
1997
April
to
between Autobytel
Form
30 2009
September
by reference
10.78
17 2010
of the 2011
10.76
between Autobytel
dated
as of
Exhibit
to
of September
as
Exhibit
to
Memorandum
by reference
No
10.74
2010
Agreement
are incorporated
Amendment
10.73
16 2010
September
3/1/2005
and
as of
herein
10.69
10.72
is
dated
Benefits
Lease
10.71
Florida
Severance
which
dated
March
herein
10.73
Restated
Letter
which
herein
Form 10-K
incorporated
l0.66
of
as
Inc
March
dated
Agreement
Memorandum
Amount $5000000
Principal
incorporated
Common
of Autobytel
Shares
U/A/D
created
21 2010
Kimberly Boren
l0.64
dated
Ventures
Exhibit
to
is
Form l0-Q
2010
Quarter
0.62
Trust
16 2010
September
Form l0-Q
Agreement
Cyber
corporation
dated
Autotropolis
Form 10-Q
2010
Quarter
Note
Promissory
Autotropolis
ito Severance
Benefits
Agreement
dated
19 2012 between
2012
November
and
Autobytel
between Autobytel
30 2012
John
and John
between
Autobytel
Steerman
Steerman
and
William
Number
Description
10.78
and
Standstill
incorporated
is
15 2012
on August
79
Form of 2013
Incentive
Loan
10.80
SEC
Ventures
by
No
File
Ltd
11
reference
2012
Fund
Ltd
Mercury
Exhibit
to
August
10.1
to
IX
between
Agreement
of Autobytel
and
Union
N.A
Bank
dated
Report
Form 8-K
Mercury
and Kevin
Ltd
with
filed
Howe
the
SEC
pursuant
Inc
the Autobytel
to
2010
Equity
dated
26 2013
February
by and
Registered
Public
Accounting
Firm Moss
23.2
Consent
of Independent
Registered
Public
Accounting
Firm Ernst
24.1
Power
31.1
Chief Executive
Chief Financial
Chief Executive
in
included
the signature
26 2013
and Lead
Relay
with
Commercial
LLC
and
302 Certification
of Periodic
of Periodic
Officer
Chief Financial
Adams LLP
Young LLP
hereto
page
302 Certification
Section
Officer Section
Officer
February
Inc
of Independent
Officer
of
between Autobytel
Consent
of Attorney
as
Agreement
23.1
32.1
on
and
Autobytel
Fund
Mercury
the Current
Stock
Autobytel
Subsidiaries
1.2
between
by and
001-34761
Performance-Based
Agreement
Assignment
1.1
herein
as of
effective
Plan
Promissory
10.81
dated
Voting Agreement
Section
Report
dated
Report
906
dated
February
February
Certification
28 2013
28 2013
of Periodic
dated
Report
February
28 2013
Filed
herewith
Contract
Management
Certain
Inc
upon
will
schedules
this
Compensatory
Exhibit
furnish supplementally
request
Securities
in
or
provided
Exchange
however
Act of 1934
have
copy
that
as
Plan
been
of
or
Arrangement
omitted
any
Autobytel
amended
in
omitted
for
accordance
schedule
with
Item
or exhibit
to
601
b2
of Regulation
the Securities
treatment
or exhibit so furnished
and
S-K
Exchange
pursuant
to
Rule
Autobytel
Commission
24b-2
of the