LifeLock 2013 Annual Report Download - page 52

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Technology and development expenses for the year ended December 31, 2013 were $40.9 million, or 11.1% of revenue, compared with $29.5 million,
or 10.7% of revenue, for the year ended December 31, 2012. The increase in our technology and development expenses from 2012 to 2013 resulted primarily
from increases in our personnel costs, as we continued to expand and enhance our workforce. In addition, technology and development expenses increased due
to the inclusion of ID Analytics’ technology and development expense since our March 2012 acquisition. ID Analytics’ technology expenses consist primarily
of the personnel and other costs incurred in research and development.
Technology and development expenses for the year ended December 31, 2012 were $29.5 million, or 10.7% of revenue, compared with $17.7 million,
or 9.2% of revenue, for the year ended December 31, 2011. The increase in our technology and development expenses from 2011 to 2012 resulted primarily
from increases in our personnel costs, as we continued to expand and enhance our workforce. In addition, technology and development expenses increased due
to the inclusion of ID Analytics’ technology and development expense since our March 2012 acquisition. ID Analytics’ technology expenses consist primarily
of the personnel and other costs incurred in research and development.

  
    

General and administrative $44,070 $ 24,629 $ 17,510 78.9% 40.7 %
Percentage of revenue 11.9% 8.9% 9.0%
General and administrative expenses for the year ended December 31, 2013 were $44.1 million, or 11.9% of revenue, compared with $24.6 million, or
8.9% of revenue, for the year ended December 31, 2012. The increase in general and administrative expenses from 2012 to 2013 resulted primarily from
additional costs associated with our public company compliance, additional personnel costs, primarily non-cash share-based compensation, and increased
general and administrative expenses from ID Analytics. In addition, for the year ended December 31, 2012, we received two favorable legal settlements of $3.6
million related to insurance claims for legal costs that we incurred in 2008 and 2009.
General and administrative expenses for the year ended December 31, 2012 were $24.6 million, or 8.9% of revenue, compared with $17.5 million, or
9.0% of revenue, for the year ended December 31, 2011. The increase in general and administrative expenses from 2011 to 2012 resulted primarily from
increased personnel costs, the general and administrative expenses of ID Analytics and related acquisition costs, and additional costs associated with the
implementation of our public company compliance. These increases were partially offset by two favorable legal settlements for a total of $3.6 million related to
insurance claims for legal costs that we incurred in 2008 and 2009.

  
    

Amortization of acquired intangible assets $7,909 $ 6,258 $ - 26.4% NM
Percentage of revenue 2.1% 2.3% 0.0%
Amortization of acquired intangible assets for the year ended December 31, 2013 was $7.9 million, or 2.1% of revenue, compared with $6.3 million,
or 2.3% of revenue, for the year ended December 31, 2012. The increase in amortization of acquired intangible assets is due to having a full year of
amortization following the acquisition of ID Analytics in March 2012 and amortization of acquired intangible assets following the acquisition of Lemon in
December 2013.

  
    

Interest expense $(353) $ (3,677) $ (231) -90.4% 1491.8%
Interest income 124 30 8 313.3% 275.0%
Change in fair value of warrant liabilities - 3,117 (8,658) -100.0% -136.0%
Change in fair value of embedded derivative - (2,785) - -100.0% NM
Other (21) (5) (5) 320.0% 0.0%
$ (250) $ (3,320) $ (8,886) -92.5% -62.6%
49