Digital River 2001 Annual Report Download - page 49

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47
Following is an allocation of the purchase price for the Company’s 2001 acquisitions that were consummated
subsequent to the July 1, 2001, effective date of SFAS No’s. 141 and 142:
The results of each of the acquisitions made in 2001 have been reflected in the Company’s results
beginning on the date of the respective acquisition.The following unaudited pro forma condensed
consolidated results of operations for the three years ended December 31, 2001, have been prepared
as if each of the 2001 acquisitions occurred on January 1, 2000, and the unaudited pro forma
condensed consolidated results of operations for the year ended December 31, 1999, has been prepared
as if the 2000 acquisition of NetSales occurred on January 1, 1999:
This financial information does not purport to represent results that would actually have been obtained
if the transactions had been in effect on January 1, 2001, 2000 or 1999, as applicable, or any future
results that may in fact be realized.
In December 1999, the Company completed its acquisition of certain assets of Tech Squared Inc.,
whereby the Company purchased Tech Squared assets consisting of 3,000,000 shares of the Company’s
Common Stock and $1,200,000 in exchange for 2,650,000 shares of the Company’s Common Stock.
For financial statement presentation purposes, the impact of this transaction was to reduce Common
Stock outstanding by 350,000 shares and is presented on the accompanying Consolidated Statement
of Stockholders’ Equity net of expenses incurred in conjunction with the transaction.
Notes to Consolidated Financial Statements December 31, 2001 and 2000
Digital River 2001 Annual Report
R evenue $ 66,131,000 $ 44,053,000 $ 16,743,000
Loss from operations (31,453,000) (72,126,000) (42,242,000)
Net loss (30,732,000) (70,386,000) (39,195,000)
Basic and diluted loss per share $ ,(1.23) $ ,(2.96) $ ,(1.79)
2001 2000 1999
Year Ended December 31,
Tangible assets $2,906,000
Liabilities acquired (2,063,000)
Customer base 3,855,000
Non-compete agreements 850,000
Technology/ tradename 425,000
Goodwill 3,615,000
Total purchase price $9,588,000