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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2019

or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from            to            
Commission file number: 001-34720
 
TELENAV, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
 
77-0521800
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification Number)

4655 Great America Parkway, Suite 300
Santa Clara, California 95054
(Address of principal executive offices, including zip code)
(408) 245-3800
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $0.001 Par Value per Share
TNAV
The NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
 
 
Accelerated filer
 
 
 
 
 
 
 
 
Non-accelerated filer
 
 
Smaller reporting company
 
 
 
 
 
 
 
 
 
 
 
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of December 31, 2019, there were 48,151,687 shares of the Registrant’s Common Stock outstanding.



EXPLANATORY NOTE

On February 12, 2020, Telenav, Inc. filed a Form 8-K/A, which indicated that it would amend its Form 10-Q for the three months ended September 30, 2020 and advised investors that they should disregard and not rely on the condensed consolidated financial statements as of and for the three months ended September 30, 2019 and the notes related thereto. On February 12, 2020, Telenav filed an amended Form 10-Q for the three months ended September 30, 2019. The information for the six months ended December 31, 2020 set forth in this Form 10-Q reflects the amended and restated information set forth in the amended September 30, 2019 Form 10-Q.

TELENAV, INC.
TABLE OF CONTENTS
 
 
 
Page No.
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 6.
 



PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements.

TELENAV, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(unaudited)
 
 
December 31,
2019
 
June 30,
2019
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
26,347

 
$
27,275

Short-term investments
 
102,603

 
72,203

Accounts receivable, net of allowances of $7 and $7 at December 31, 2019 and June 30, 2019, respectively
 
44,463

 
69,781

Restricted cash
 
1,520

 
1,950

Deferred costs
 
33,117

 
18,752

Prepaid expenses and other current assets
 
8,933

 
3,784

Assets of discontinued operations
 

 
6,330

Total current assets
 
216,983

 
200,075

Property and equipment, net
 
5,215

 
5,583

Operating lease right-of-use assets
 
8,749

 

Deferred income taxes, non-current
 
1,401

 
998

Goodwill and intangible assets, net
 
15,265

 
15,701

Deferred costs, non-current
 
48,646

 
61,050

Other assets
 
21,285

 
1,414

Assets of discontinued operations, non-current
 

 
12,194

Total assets
 
$
317,544

 
$
297,015

Liabilities and stockholders’ equity
 
 
 
 
Current liabilities:
 
 
 
 
Trade accounts payable
 
$
1,113

 
$
16,061

Accrued expenses
 
54,182

 
48,899

Operating lease liabilities
 
3,532

 

Deferred revenue
 
50,416

 
31,270

Income taxes payable
 
928

 
800

Liabilities of discontinued operations
 

 
3,373

Total current liabilities
 
110,171

 
100,403

Deferred rent, non-current
 

 
1,266

Operating lease liabilities, non-current
 
6,459

 

Deferred revenue, non-current
 
93,755

 
103,865

Other long-term liabilities
 
678

 
811

Liabilities of discontinued operations, non-current
 

 
30

Commitments and contingencies
 

 

Stockholders’ equity:
 
 
 
 
Preferred stock, $0.001 par value: 50,000 shares authorized; no shares issued or outstanding
 

 

Common stock, $0.001 par value: 600,000 shares authorized; 48,151 and 46,911 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively
 
48

 
47

Additional paid-in capital
 
190,593

 
182,349

Accumulated other comprehensive loss
 
(1,538
)
 
(1,477
)
Accumulated deficit
 
(82,622
)
 
(90,279
)
Total stockholders’ equity
 
106,481

 
90,640

Total liabilities and stockholders’ equity
 
$
317,544

 
$
297,015


See accompanying Notes to Condensed Consolidated Financial Statements.

1


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

 
 
Three Months Ended
 
Six Months Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019

2018
Revenue:
 
 
 
 
 





Product
 
$
61,543


$
42,397

 
$
117,533


$
82,327

Services
 
12,332


7,763

 
22,971


14,085

Total revenue
 
73,875

 
50,160

 
140,504

 
96,412

Cost of revenue:
 
 
 
 
 
 
 
 
Product
 
26,434


25,015

 
58,423


48,603

Services
 
7,288


3,891

 
12,150


7,845

Total cost of revenue
 
33,722

 
28,906

 
70,573

 
56,448

Gross profit
 
40,153


21,254

 
69,931

 
39,964

Operating expenses:
 
 
 
 
 
 
 
 
Research and development
 
19,717


17,766

 
40,380


36,258

Sales and marketing
 
2,134


1,665

 
4,080


3,368

General and administrative
 
6,428


5,721

 
13,715


11,171

Legal settlements and contingencies
 


650

 


650

Total operating expenses
 
28,279

 
25,802

 
58,175


51,447

Income (loss) from operations
 
11,874


(4,548
)
 
11,756

 
(11,483
)
Other income, net
 
596


532

 
1,157

 
2,122

Income (loss) from continuing operations before provision for income taxes
 
12,470


(4,016
)
 
12,913

 
(9,361
)
Provision for income taxes
 
205


102

 
616

 
842

Equity in net (income) of equity method investee
 
(797
)
 

 
(797
)
 

Income (loss) from continuing operations
 
13,062

 
(4,118
)
 
13,094

 
(10,203
)
Discontinued operations:
 
 
 
 
 
 
 
 
Income (loss) from operations of Advertising business, net of tax
 

 
(463
)
 
832

 
(1,948
)
Loss from sale of Advertising business
 
(56
)
 

 
(4,874
)
 

Loss on discontinued operations
 
(56
)
 
(463
)
 
(4,042
)
 
(1,948
)
Net income (loss)
 
$
13,006

 
$
(4,581
)
 
$
9,052

 
$
(12,151
)
 
 
 
 
 
 
 
 
 
Basic income (loss) per share:
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
0.27

 
$
(0.09
)
 
$
0.27

 
$
(0.23
)
Loss on discontinued operations
 

 
(0.01
)
 
(0.08
)
 
(0.04
)
Net income (loss)
 
$
0.27

 
$
(0.10
)
 
$
0.19

 
$
(0.27
)
Diluted income (loss) per share:
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
0.27

 
$
(0.09
)
 
$
0.27

 
$
(0.23
)
Loss on discontinued operations
 

 
(0.01
)
 
(0.08
)
 
(0.04
)
Net income (loss)
 
$
0.27

 
$
(0.10
)
 
$
0.18

 
$
(0.27
)
Weighted average shares used in computing income (loss) per share:
 
 
 
 
 
 
 
 
Basic
 
48,475

 
45,443

 
48,127

 
45,230

Diluted
 
48,821

 
45,443

 
49,257

 
45,230

Stock-based compensation expense included in continuing operations above:
 
 
 
 
 
 
 
 
Cost of revenue
 
$
13

 
$
16

 
$
29

 
$
40

Research and development
 
623

 
1,164

 
1,718

 
2,415

Sales and marketing
 
190

 
167

 
325

 
333

General and administrative
 
652

 
528

 
1,158

 
1,135

Total stock-based compensation expense
 
$
1,478

 
$
1,875

 
$
3,230

 
$
3,923



See accompanying Notes to Condensed Consolidated Financial Statements.

2


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands)
(unaudited)


 
 
Three Months Ended
 
Six Months Ended
 
 
December 31,
 
December 31,
 
 
2019
 
2018
 
2019
 
2018
Net income (loss)
 
$
13,006

 
$
(4,581
)
 
$
9,052

 
$
(12,151
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Foreign currency translation adjustment, net of tax
 
207

 
(131
)
 
(103
)
 
(348
)
Available-for-sale securities:
 
 
 
 
 
 
 
 
Unrealized gain (loss) on available-for-sale securities, net of tax
 
(15
)
 
97

 
44

 
186

Reclassification adjustments for (loss) gain on available-for-sale securities recognized, net of tax
 
(1
)
 
5

 
(2
)
 
7

Net (decrease) increase from available-for-sale securities, net of tax
 
(16
)
 
102

 
42

 
193

Other comprehensive income (loss), net of tax
 
191

 
(29
)
 
(61
)
 
(155
)
Comprehensive income (loss)
 
$
13,197

 
$
(4,610
)
 
$
8,991

 
$
(12,306
)


See accompanying Notes to Condensed Consolidated Financial Statements.


3


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands)
(unaudited)
 
 
Common Stock
 
Additional
Paid-in
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Accumulated Deficit
 
Total Stockholders' Equity
Six Months Ended December 31, 2019
 
Shares
 
Amount
 
Balance at June 30, 2019
 
46,911

 
$
47

 
$
182,349

 
$
(1,477
)
 
$
(90,279
)
 
$
90,640

Issuance of common stock upon exercise of stock options
 
1,326

 
1

 
8,340

 

 

 
8,341

Release of restricted stock units
 
329

 
1

 
(1,273
)
 

 

 
(1,272
)
Stock-based compensation expense, continuing operations
 

 

 
1,752

 

 

 
1,752

Stock-based compensation expense, discontinued operations
 

 

 
887

 

 

 
887

Foreign currency translation adjustment, net of tax
 

 

 

 
(310
)
 

 
(310
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
58

 

 
58

Net loss
 

 

 

 

 
(3,954
)
 
(3,954
)
Balance at September 30, 2019
 
48,566

 
49

 
192,055

 
(1,729
)
 
(94,233
)
 
96,142

Issuance of common stock upon exercise of stock options
 

 

 

 

 

 

Release of restricted stock units
 
352

 

 
(317
)
 

 

 
(317
)
Repurchases of common stock
 
(767
)
 
(1
)
 
(2,623
)
 

 
(1,395
)
 
(4,019
)
Stock-based compensation expense, continuing operations
 

 

 
1,478

 

 

 
1,478

Foreign currency translation adjustment, net of tax
 

 

 

 
207

 

 
207

Unrealized net gain on available-for-sale securities, net of tax
 

 

 

 
(16
)
 

 
(16
)
Net income
 

 

 

 

 
13,006

 
13,006

Balance at December 31, 2019
 
48,151

 
$
48

 
$
190,593

 
$
(1,538
)
 
$
(82,622
)
 
$
106,481

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2018
 
44,871

 
$
45

 
$
167,895

 
$
(1,855
)
 
$
(57,202
)
 
$
108,883

Issuance of common stock upon exercise of stock options
 
5

 

 
25

 

 

 
25

Release of restricted stock units
 
385

 

 
(1,205
)
 

 

 
(1,205
)
Stock-based compensation expense, continuing operations
 

 

 
2,048

 

 

 
2,048

Stock-based compensation expense, discontinued operations
 

 

 
221

 

 

 
221

Foreign currency translation adjustment, net of tax
 

 

 

 
(217
)
 

 
(217
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
91

 

 
91

Net loss
 

 

 

 

 
(7,570
)
 
(7,570
)
Balance at September 30, 2018
 
45,261

 
45

 
168,984

 
(1,981
)
 
(64,772
)
 
102,276

Issuance of common stock upon exercise of stock options
 

 

 
1

 

 

 
1

Release of restricted stock units
 
280

 
1

 
(353
)
 

 

 
(352
)
Stock-based compensation expense, continuing operations
 

 

 
1,875

 

 

 
1,875

Stock-based compensation expense, discontinued operations
 

 

 
240

 

 

 
240

Foreign currency translation adjustment, net of tax
 

 

 

 
(131
)
 

 
(131
)
Unrealized net loss on available-for-sale securities, net of tax
 

 

 

 
102

 

 
102

Net loss
 

 

 

 

 
(4,581
)
 
(4,581
)
Balance at December 31, 2018
 
45,541

 
$
46

 
$
170,747

 
$
(2,010
)
 
$
(69,353
)
 
$
99,430



See accompanying Notes to Condensed Consolidated Financial Statements.

4


TELENAV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
 
Six Months Ended
 
 
December 31,
 
 
2019
 
2018
Operating activities
 
 
 
 
Net income (loss)
 
$
9,052

 
$
(12,151
)
Loss on discontinued operations
 
4,042

 
1,948

Income (loss) from continuing operations
 
13,094

 
(10,203
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
Stock-based compensation expense
 
3,230

 
3,923

Depreciation and amortization
 
1,856

 
2,016

Operating lease amortization, net of accretion
 
1,321

 

Accretion of net premium on short-term investments
 
75

 

Unrealized gain on non-marketable equity investments
 
(62
)
 
(1,259
)
Equity in net income of equity method investee
 
(797
)
 

Other
 
(1
)
 
(14
)
Changes in operating assets and liabilities:
 
 
 
 
Accounts receivable
 
25,835

 
3,390

Deferred income taxes
 
(409
)
 
445

Deferred costs
 
(1,961
)
 
(7,040
)
Prepaid expenses and other current assets
 
(3,992
)
 
216

Other assets
 
21

 
(116
)
Trade accounts payable
 
(15,054
)
 
9,812

Accrued expenses and other liabilities
 
3,945

 
(9,575
)
Income taxes payable
 
130

 
39

Deferred rent
 

 
91

Operating lease liabilities
 
(1,754
)
 

Deferred revenue
 
9,036

 
13,234

Net cash provided by operating activities
 
34,513

 
4,959

Investing activities
 
 
 
 
Purchases of property and equipment
 
(1,078
)
 
(445
)
Purchases of short-term investments
 
(54,439
)
 
(15,862
)
Purchase of long-term investments
 
(3,500
)
 

Proceeds from sales and maturities of short-term investments
 
24,067

 
20,342

Net cash provided by (used in) investing activities
 
(34,950
)
 
4,035

Financing activities
 
 
 
 
Proceeds from exercise of stock options
 
8,306

 
26

Tax withholdings related to net share settlements of restricted stock units
 
(1,148
)
 
(1,559
)
Repurchase of common stock
 
(4,019
)
 

Net cash provided by (used in) financing activities
 
3,139

 
(1,533
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
(85
)
 
(360
)
Net increase in cash, cash equivalents and restricted cash, continuing operations
 
2,617

 
7,101

Net cash used in discontinued operations
 
(3,975
)
 
(2,319
)
Cash, cash equivalents and restricted cash, beginning of period
 
29,225

 
20,099

Cash, cash equivalents and restricted cash, end of period
 
$
27,867

 
$
24,881

Supplemental disclosure of cash flow information
 
 
 
 
Income taxes paid, net
 
$
1,279

 
$
586

Non-cash investing: Investment in LLC acquired in exchange for sale of Advertising business
 
$
15,600

 
$

Cash flows from discontinued operations:
 
 
 
 
Net cash used in operating activities
 
$
(3,569
)
 
$
(2,319
)
Net cash used in financing activities
 
(406
)
 

Net cash transferred from continuing operations
 
3,975

 
2,319

Net change in cash and cash equivalents from discontinued operations
 

 

Cash and cash equivalents of discontinued operations, beginning of period
 

 

Cash and cash equivalents of discontinued operations, end of period
 
$

 
$

Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
 
 
 
 
Cash and cash equivalents
 
$
26,347

 
$
22,405

Restricted cash
 
1,520

 
2,476

Total cash, cash equivalents and restricted cash
 
$
27,867

 
$
24,881


See accompanying Notes to Condensed Consolidated Financial Statements.

5


TELENAV, INC.
Notes to Condensed Consolidated Financial Statements
(unaudited)
1.
Summary of business and significant accounting policies
Description of business
Telenav, Inc., also referred to in this report as “we,” “our” or “us,” was incorporated in September 1999 in the State of Delaware. We are a leading provider of connected car and location-based products and services. We utilize our automotive navigation platform to deliver these products and services. Our automotive navigation platform allows us to deliver enhanced location-based services to automobile manufacturers, as well as original equipment manufacturers and tier one suppliers, to which we refer collectively as tier ones. Our automotive solutions primarily include navigation systems built into vehicles, or on-board, mobile phone based navigation systems, or brought-in, and advanced navigation solutions that offer on-board functionality combined with cloud functionality, or hybrid. Our fiscal year ends on June 30, and in this report we refer to the fiscal year ended June 30, 2019 as “fiscal 2019,” the fiscal year ending June 30, 2020 as “fiscal 2020” and the fiscal year ending June 30, 2021 as “fiscal 2021.”
Commencing July 1, 2019, we operate in a single segment, automotive. Through June 30, 2019, we operated in three segments - automotive, advertising and mobile navigation. In August 2019, we completed the disposition of our digital advertising operations (the "Ads Business") and have presented the results of operations for the Ads Business as discontinued operations for all prior periods presented. See Note 12. Our mobile navigation services business represented less than 5% of total revenue for the three and six months ended December 31, 2019 and we expect the business to continue to decline. Our chief executive officer, or CEO, the chief operating decision maker, does not review mobile navigation revenue and cost of revenue separately. As a result, we have combined the mobile navigation business with the automotive business in a single segment.
Basis of presentation
The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.
Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall. The results of Jitu did not have a material impact on our financial statements for the six months ended December 31, 2019 and 2018.
The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2019, included in our Annual Report on Form 10-K for fiscal 2019 filed with the U.S. Securities and Exchange Commission, or SEC, on August 22, 2019, which we refer to as the Form 10-K.
Effective July 1, 2019, we adopted the requirements of Accounting Standards Update, or ASU, No. 2016-02, Leases (ASC 842) as discussed in the section titled “Recently adopted accounting pronouncements” of this Note 1. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with this standard.
Certain prior period balances have been reclassified to conform to the current period presentation of discontinued operations.
Significant accounting policies
With the exception of changes in accounting policies associated with our adoption of the new lease accounting standard, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Form 10-K.

6

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Use of estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, including estimating and allocating the transaction price of customer contracts, the recoverability of accounts receivable and short-term investments, the determination of acquired intangibles and assessment of goodwill for impairment, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates.
Disaggregation of revenue
In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition (in thousands):
 
 
Three Months Ended December 31,
 
Six Months Ended
December 31,
 
 
2019
 
2018
 
2019
 
2018
Product
 
 
 
 
 
 
 
 
On-board automotive navigation solutions (point in time)(1)
 
$
61,543

 
$
42,397

 
$
117,533

 
$
82,327

Total product revenue
 
61,543

 
42,397

 
117,533

 
82,327

Services
 
 
 
 
 
 
 
 
Brought-in automotive navigation solutions (over time)(2)
 
8,787

 
4,480

 
15,009

 
8,022

Automotive maintenance and support and other (over time)
 
1,206

 
645

 
2,875

 
655

Mobile navigation services (over time)
 
2,339

 
2,638

 
5,087

 
5,408

Total services revenue
 
12,332

 
7,763

 
22,971

 
14,085

Total revenue
 
$
73,875

 
$
50,160

 
$
140,504

 
$
96,412

(1)Includes i) royalties earned and recognized at the point in time usage occurs, ii) map updates and iii) customized software development fees.
(2)Includes royalties earned and recognized over time from the allocation of transaction price to service obligations for hybrid automotive solutions.

Contract assets
Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of December 31, 2019 and June 30, 2019, we had $5.7 million and zero contract assets, respectively.
Deferred costs
Changes in the balance of total deferred costs (current and non-current) during the six months ended December 31, 2019 were as follows (in thousands):
 
 
Deferred Costs
 
 
Content
 
Development
 
Total
Balance, June 30, 2019
 
$
71,466

 
$
8,336

 
$
79,802

Content licensing costs incurred
 
64,612

 

 
64,612

Customized software development costs incurred
 

 
2,503

 
2,503

Less: cost of revenue recognized
 
(62,785
)
 
(2,369
)
 
(65,154
)
Balance, December 31, 2019
 
$
73,293

 
$
8,470

 
$
81,763


Concentrations of risk and significant customers
Revenue related to products and services provided through Ford Motor Company and affiliated entities, or Ford, comprised 39% and 65% of total revenue for the three months ended December 31, 2019 and 2018, respectively, and 45% and 66% for the six months ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and June 30, 2019, receivables due from Ford were 44% and 33% of total accounts receivable, respectively.

7

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Revenue related to products and services provided through General Motors Holdings and its affiliates, or GM, comprised 31% and 19% of total revenue for the three months ended December 31, 2019 and 2018, respectively, and 28% and 18% for the six months ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and June 30, 2019, receivables due from GM were 32% and 15% of total accounts receivable, respectively.
Revenue related to products and services provided to affiliates of Grab Holdings, Inc., which, collectively with certain of its affiliates, we refer to as Grab, comprised 19% and 15% of total revenue for the three and six months ended December 31, 2019, respectively.
Receivables due from Xevo, Inc. were less than 10% and 29% of total accounts receivable as of December 31, 2019 and June 30, 2019, respectively.
Restricted cash
As of December 31, 2019 and June 30, 2019, we had restricted cash of $1.5 million and $2.0 million, respectively, on our consolidated balance sheets, comprised primarily of prepayments from a customer.
Accumulated other comprehensive loss, net of tax
The components of accumulated other comprehensive loss, net of related taxes, and activity as of December 31, 2019, were as follows (in thousands):
 
 
Foreign Currency
Translation
Adjustments
 
Unrealized
Gains (Losses) on
Available-for-Sale
Securities
 
Total
Balance, net of tax as of June 30, 2019
 
$
(1,623
)
 
$
146

 
$
(1,477
)
Other comprehensive income (loss) before reclassifications, net of tax
 
(103
)
 
44

 
(59
)
Amount reclassified from accumulated other comprehensive loss, net of tax
 

 
(2
)
 
(2
)
Other comprehensive income (loss), net of tax
 
(103
)
 
42

 
(61
)
Balance, net of tax as of December 31, 2019
 
$
(1,726
)
 
$
188

 
$
(1,538
)


The amount of income tax benefit allocated to each component of accumulated other comprehensive loss was not material for the six months ended December 31, 2019.
Recently adopted accounting pronouncements
In August 2018, the Financial Accounting Standards Board, or FASB, issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, or ASU 2018-15, which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. We early adopted ASU 2018-15 on July 1, 2019 on a prospective basis, and it did not have a material impact on our financial position or results of operations.
In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842) which supersedes the guidance in topic ASC 840, Leases. The new standard, including subsequent amendments, requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease.  A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to previous guidance for operating leases under ASC 840, Leases.

We adopted ASC 842 effective July 1, 2019. We adopted the standard using the modified retrospective transition approach applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of right-of-use, or ROU, assets and lease liabilities for operating leases that were not previously recorded. For information regarding the impact of ASC 842 adoption, see Leases and Note 6.

8

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

Leases
On July 1, 2019, we adopted ASC 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after July 1, 2019 are presented under ASC 842, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting.
We elected the package of practical expedients permitted under the transition guidance, which allowed us to carry forward our historical lease classification, our assessment on whether a contract was or contains a lease, and our initial direct costs for any leases that existed prior to July 1, 2019. We also elected to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term.
Upon adoption, we recognized total ROU assets of $11.7 million, with corresponding liabilities of $13.0 million on the condensed consolidated balance sheets. The adoption did not impact our beginning retained earnings, or our prior year condensed consolidated statements of operations and statements of cash flows.  
We recognize operating lease ROU assets and operating lease liabilities at the commencement date based on the present value of the future minimum lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments we made and excludes lease incentives and initial direct costs we incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.
We include operating leases in operating lease right-of-use assets, operating lease liabilities and operating lease liabilities, non-current on our condensed consolidated balance sheets.
Recent accounting pronouncements not yet adopted
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies accounting for income taxes by revising or clarifying existing guidance in ASC 740, as well as removing certain exceptions within ASC 740. This guidance is effective for us on July 1, 2021 with early adoption permitted. We are evaluating the impact of the adoption of this standard on our consolidated financial statements, but we do not expect it to have a material impact.
With the exception of the recently adopted accounting pronouncements and recent accounting pronouncements not yet adopted discussed above, there have been no other changes in accounting pronouncements during the six months ended December 31, 2019, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for fiscal 2019, that are of significance or potential significance to us.
2.
Net income (loss) per share
Basic income (loss) per share is calculated by dividing income (loss) by the weighted-average number of common shares outstanding for the period. Diluted income (loss) per share is computed by dividing income (loss) by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and restricted stock units using the treasury-stock method.
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):
 

9

TELENAV, INC.
Notes to Condensed Consolidated Financial Statements—(Continued)
(unaudited)

 
 
Three Months Ended December 31,
 
Six Months Ended
December 31,
 
 
2019
 
2018
 
2019
 
2018
Income (loss) from continuing operations
 
$
13,062

 
$
(4,118
)
 
$
13,094

 
$
(10,203
)
Loss on discontinued operations
 
(56
)
 
(463
)
 
(4,042
)
 
(1,948
)
Net income (loss)
 
$
13,006

 
$
(4,581
)
 
$
9,052

 
$
(12,151
)
Shares used to compute basic income (loss) per share
 
48,475

 
45,443

 
48,127

 
45,230

Dilutive potential common shares:
 
 
 
 
 
 
 
 
Stock options
 

 

 
112

 

Restricted stock units
 
346

 

 
1,018

 

Shares used to compute diluted income (loss) per share
 
48,821

 
45,443

 
49,257

 
45,230

Basic income (loss) per share:
 
 
 
 
 
 
 
 
Loss from continuing operations