Support.com 2009 Annual Report Download - page 45

Table of Contents
SUPPORT.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Organization and Summary of Significant Accounting Policies
Nature of Operations
Support.com, Inc. (“Support.com,” “the Company,” “We” or “Our”), was incorporated in the state of Delaware on December 3, 1997. We changed our
name from SupportSoft, Inc. to Support.com, Inc. on June 22, 2009. Our common stock trades on the NASDAQ Global Select Market under the symbol “SPRT.”
We are a leading independent provider of online care for the digital home and microbusiness.
Our premium services and software products install, set-up, connect, repair and protect personal computers and related devices that are essential to
consumers’ digital lives. We offer one-time services and subscriptions, and we also license software products to consumers who prefer do-it-yourself solutions.
Basis of Presentation
Support.com was founded in 1997 under the name SupportSoft, Inc. as an enterprise software provider focused on technical support organizations. In 2007
we launched our consumer services business, and in 2008 began reporting two operating segments, Enterprise and Consumer. In June, 2009 we sold our
Enterprise business, changed our name to Support.com, Inc. and focused our efforts purely on the consumer market. In December 2009 through the acquisition of
substantially all of the assets of Xeriton, Inc., we added software tools marketed under the Sammsoft brand to our Consumer business.
As a result of the sale of the Enterprise business, our audited consolidated financial statements, accompanying notes and other information provided in this
Form 10-K reflect the Enterprise business as a discontinued operation for all periods presented. After reclassifying the Enterprise business to discontinued
operations, our continuing operations consist solely of our remaining segment, the Consumer business, which includes our online support services as well as our
consumer software products.
The Consolidated Financial Statements include the accounts of Support.com and its wholly owned subsidiaries. All significant intercompany transactions
and balances have been eliminated.
Foreign Currency Translation
The functional currency of our foreign subsidiaries is generally the local currency. Assets and liabilities of our wholly owned foreign subsidiaries are
translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average
exchange rates prevailing during the year. Any material resulting translation adjustments are reflected as a separate component of stockholders’ equity in
accumulated other comprehensive income or loss. Realized foreign currency transaction gains and losses were not material during the years ending December 31,
2009, 2008, and 2007.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates that
require management’s most significant, difficult and subjective judgments include the valuation and recognition of investments, the assessment of recoverability
of intangible assets and their estimated useful lives, the valuations and recognition of stock-based compensation and the recognition and measurement of current
and deferred income tax assets and liabilities. Actual results could differ materially from these estimates.
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Source: Support.com, Inc., 10-K, March 12, 2010 Powered by Morningstar® Document Research℠