Travelzoo 2009 Annual Report Download - page 77

original Netsurfer stockholders complied with the conditions to issuance of their shares. The Company is not able to
predict the outcome of any future claims which might be asserted relating to the unissued shares. If such claims were
asserted, and were fully successful, that could result in the Company’s being required to issue up to an additional
approximately 4,068,000 shares of common stock for no additional payment.
On October 15, 2004, the Company announced a program under which it would make cash payments to people
who establish that they were former stockholders of Travelzoo.com Corporation, and who failed to submit requests
to convert shares into Travelzoo Inc. within the required time period. The accompanying consolidated financial
statements include a charge in general and administrative expenses of $7,000 for the year ended December 31,
2009. The total cost of this program is not reliably estimable because it is based on the ultimate number of valid
requests received and future levels of the Company’s common stock price. The Company’s common stock price
affects the liability because the amount of cash payments under the program is based in part on the recent level of the
stock price at the date valid requests are received. The Company does not know how many of the requests for shares
originally received by Travelzoo.com Corporation in 1998 were valid, but the Company believes that only a portion
of such requests were valid. As noted above, in order to receive payment under the program, a person is required to
establish that such person validly held shares in Travelzoo.com Corporation. Assuming 100% of the requests from
1998 were valid, former stockholders of Travelzoo.com Corporation holding approximately 4,068,000 shares had
not submitted claims under the program.
(4) Other Balance Sheet Items
The details of changes to the allowance for doubtful accounts are as follows (in thousands):
Balance at December 31, 2006............................................... $726
Additions — charged to costs and expenses, net ................................ (48)
Deductions — write-offs.................................................. (388)
Balance at December 31, 2007............................................... 290
Additions — charged to costs and expenses, net ................................ 321
Deductions — write-offs.................................................. (254)
Balance at December 31, 2008............................................... 357
Additions — charged to costs and expenses, net ................................ 258
Deductions — write-offs.................................................. (114)
Balance at December 31, 2009............................................... $501
The details of prepaid expenses and other current assets as of December 31, 2009 and 2008 were as follows (in
thousands):
2009 2008
December 31,
Prepaid expenses .................................................. $1,009 $523
Other current assets ................................................ 94 124
Total prepaid expenses and other current assets ........................... $1,103 $647
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