3.

Selected Balance Sheet Data

Commissions Receivable

Commissions receivable consisted of the following:

 

		September 30,				December 31,
		2013				2012
Commissions due from buyer/seller		$	3,288			$	5,205
Due from sales agents			1,120				688
Less allowance for doubtful accounts			(100	)			(129	)
		$	4,308			$	5,764

The following table presents the changes in the allowance for doubtful accounts:

 

		September 30,				December 31,
		2013				2012
Balance at beginning of period		$	(129	)		$	(143	)
Provision for losses on commissions receivable			—				—
Write-off of uncollectible commissions receivable			29				14
Balance at end of period		$	(100	)		$	(129	)

 

Prepaid Expenses and Other Current Assets

Deferred Offering Costs

Deferred offering costs, consisting of legal, accounting and other fees and costs relating to the initial public offering, are capitalized and included in prepaid expenses and other current assets in the consolidated balance sheets. The deferred offering costs will be offset against the initial public offering proceeds upon the closing of the IPO which occurred on November 5, 2013. There were $3,157 of capitalized deferred offering costs as of September 30, 2013 and no similar costs as of December 31, 2012.

Other Assets

Other assets consisted of the following:

 

		September 30,				December 31,
		2013				2012
Commission notes receivable		$	290			$	739
Due from sales agents			590				376
Agent recruiting receivable			1,459				1,766
Security deposits and other			1,092				1,084
		$	3,431			$	3,965

Other Liabilities

Other liabilities consisted of the following:

 

		September 30,				December 31,
		2013				2012
Long term deferred rent		$	3,530			$	2,703
Accrued legal			1,351				1,826
Other			126				—
		$	5,007			$	4,529

 

Deferred Compensation and Commissions

Deferred compensation and commissions consisted of the following:

 

		September 30, 2013				December 31, 2012
Commissions payable		$	6,070			$	6,700
Deferred compensation liability			3,360				2,421
		$	9,430			$	9,121

During the fiscal year ended March 31, 2001, the Company established the MMREIS Deferred Compensation Plan (the Deferred Compensation Plan) for a select group of management. The Deferred Compensation Plan has similar characteristics of a 401(k) plan and provides the Deferred Compensation Plan participants additional flexibility in terms of contribution and distribution elections. Participants may elect to invest in various equity and debt securities offered within the Deferred Compensation Plan program. The Company chose to fund the Deferred Compensation Plan through variable life insurance policies purchased for the participants’ benefit. The Deferred Compensation Plan is managed by a third-party institutional fund manager, and the deferred compensation and investment earnings are held as a Company asset in a rabbi trust. This trust account is restricted unless the Company becomes insolvent, as defined in the Deferred Compensation Plan, in which case the Deferred Compensation Plan’s assets are subject to the claims of the Company’s creditors. The Company may also, in its sole and absolute discretion, elect to withdraw at any time all or a portion of the amount by which the fair market value of the Deferred Compensation Plan’s assets exceeds 110% of the aggregate amount credited to the Deferred Compensation Plan’s participants’ accounts, as defined by the Deferred Compensation Plan.

The deferred compensation liability is included in other liabilities on the consolidated balance sheets as reflected above. The net change in the carrying value of the investment assets and the related obligation are recorded in other income, net and selling, general, and administrative expense, respectively, in the consolidated statements of operations.