8. Loss on Long-Term Contract

During the second quarter of 2014, the Company updated its analysis of a long-term partner related contract. Based on the results of that analysis and an estimate of revenue to be generated in the future under the contract, the Company determined that sufficient revenue would not be generated under the contract for it to meet its minimum annual guarantees of revenue sharing to its partner.

As a result, the Company recorded a $6,200 loss on the long-term contract at June 30, 2014, which represented the amount it expected that the total minimum annual guarantees payable to the partner would exceed the revenue generated under the contract at that time. The loss on the long-term contract was recorded as follows:

The Company continues to re-evaluate this loss contract status. During the first quarter of 2015, the Company reassessed its future revenue projections and operating costs for the remainder of the contract until it terminates on December 31, 2016.  Based on lower revenue projections, the Company revised its loss contract estimates during the three months ended March 31, 2015, which resulted in a net loss of $1,036. The Company evaluated its loss contract estimates during the three months ended March 31, 2016, which resulted in no net change on the long-term contract.  At March 31, 2016, the remaining balance on the loss on long-term contract was $441.