Product Development and Technical Operations. Product development and technical operations expense includes all costs related to the continued operations, development and enhancement of our core technology product, the AdCenter platform. The AdCenter is used to operate both our own Advertiser Network and other publishers’ client networks, and is licensed to publishers to operate their own network. These costs include salaries and associated costs of employment, including share-based compensation, overhead, and facilities. Software licensing and computer equipment depreciation related to supporting product development and technical operations functions are also included in product development and technical operations expense. Beginning in 2013, the Company had made a concentrated effort to rebuild product and technical human resources by increasing the Company’s product and technical resources to a level that the Company feels appropriate for its current and expected businesses. General and Administrative General and administrative expenses include personnel cost, legal, insurance, tax and accounting, consulting, professional services fees and the provision for, and reductions of, the allowance for doubtful trade receivables. Overview of the Years Ended December 31, 2014 and December 31, 2013 Operating costs for the years ended December 31, 2014 and 2013 were as follows (in thousands): Year Ended December 31, % of % of Dollar % 2014 Revenue 2013 Revenue Change Change Sales and marketing $ 1,690 36 % $ 1,082 16 % $ 608 56 % Product development and technical operations 4,561 97 % 3,557 53 % 1,004 28 % General and administrative 2,561 54 % 3,052 46 % (491 ) (16 )% Restructuring charge 30 1 % 40 1 % (10 ) (25 )% Total operating expenses $ 8,842 188 % $ 7,731 116 % $ 1,111 14 % Sales and Marketing Sales and marketing expenses include salaries, commissions, share-based compensation and other costs of employment for our sales force, sales administration and customer service staff and marketing personnel, overhead, facilities and allocation of depreciation. Sales and marketing expenses also include the costs of advertising, trade shows, public relations activities and various other activities supporting our customer acquisition effort.
Product Development and Technical Operations. Product development and technical operations expense includes all costs related to the continued operations, development and enhancement of our core technology product, the AdCenter platform. The AdCenter is used to operate both our own Advertiser Network and other publishers’ client networks, and is licensed to publishers to operate their own network. These costs include salaries and associated costs of employment, including share-based compensation, overhead, and facilities. Software licensing and computer equipment depreciation related to supporting product development and technical operations functions are included in product development and technical operations expense. Beginning in 2013, the company had made a concentrated effort to rebuild product and technical human resources by increasing the Company’s product and technical resources to a level that the Company feels appropriate for its current and expected businesses. General and Administrative General and administrative expenses include personnel cost, legal, insurance, tax and accounting, consulting, professional services fees and the provision for, and reductions of, the allowance for doubtful trade receivables. General and Administrative costs decreased $0.5 million in the year ended December 31, 2014, as compared to 2013, which is primarily attributed to continuing cost containment efforts in 2014. Other Items Overview of the Three and Six Months Ended June 30, 2015 and 2014 The tables below set forth other continuing operations data for the three and six months ended June 30, 2015, and 2014 (in thousands): Three Months Ended June 30, 2015 % of Revenue 2014 % of Revenue Dollar Change % Change Non-operating income (expense), net Interest income $ — — $ 27 2 % $ (27 ) (100 %) Interest expense (1 ) — (4 ) — 3 100 % Other income, net 20 2 % 18 1 % 2 11 % Total non-operating income (expense), net $ 19 2 % $ 41 3 % $ (22 ) (54 %) Income tax expense $ — — $ — — $ — — Six Months Ended June 30, 2015 % of Revenue 2014 % of Revenue Dollar Change % Change Non-operating income (expense), net Interest income $ — (1 %) $ 74 3 % $ (74 ) (100 %) Interest expense (1 ) — (7 ) — 6 (86 %) Other income (expense), net 16 1 % 17 — (1 ) (6 %) Total non-operating income (expense), net $ 15 0 % $ 84 3 % $ (69 ) (82 %) Income tax expense $ — — $ — — $ — — Interest Income and Expense Interest income decreased 100% in both the three and six months ended June 30, 2015, respectively, as compared to the same periods in 2014...
