Green Dot 2010 Annual Report Download - page 78

Note 4 — Property and Equipment (continued)
internal-use software of $3.8 million for the year ended December 31, 2010, $1.3 million for the five months
ended December 31, 2009 and $2.5 million and $2.4 million for the years ended July 31, 2009 and 2008,
respectively. The net carrying value of capitalized internal-use software was $8.4 million and $5.5 million at
December 31, 2010 and 2009, respectively.
Note 5 — Related Party Transactions
At December 31, 2010, we had no related party receivables or payables. At December 31, 2009, we
had receivables of $2.3 million due from our Chief Executive Officer and $0.1 million due from our Chief
Financial Officer. These receivables were related to federal and state payroll taxes arising from stock
awards granted and stock options exercised that we are required to remit to the various taxing authorities.
We recorded these receivables as a component of accounts receivable, net, on our consolidated balance
sheet as of December 31, 2009. We collected these receivables in cash in January 2010.
Prior to December 31, 2009, we had related party notes receivable, as described below. All of these
related party notes receivable were repaid in full, including accrued interest of $936,000, in November 2009.
We loaned $3.0 million in March 2004 and $0.8 million in February 2006 to our current Chief Executive
Officer bearing interest at rates of 3.5% and 4.5%, respectively, compounded semiannually. All principal
and unpaid interest outstanding under the loans was due in March 2011. The loans were collateralized by
2,500,000 shares of our common stock owned by the officer and pledged under a stock pledge agreement.
We classified the outstanding balance of these loans, including capitalized interest of $735,000 and
$575,000 at July 31, 2009 and 2008, respectively, as a reduction in stockholders’ equity. We recorded
interest on these loans of $41,000 for the five months ended December 31, 2009 and $160,000 and
$155,000 for the years ended July 31, 2009 and 2008, respectively, as additional paid-in-capital.
During the three-year period ended July 31, 2009, we loaned an aggregate amount of $1.1 million to
an executive to purchase common stock. The $1.1 million was loaned in seven installments, each
installment ranging from $18,000 to $622,000. The interest rate on the loan was specified for each
installment and ranged from 2.72% to 5.14%, compounded semiannually. All principal and unpaid interest
outstanding under the loan was due in May 2013. The loan was collateralized by 898,000 shares of our
common stock owned by the officer and a full recourse promissory note. We classified the outstanding
balance of the loan, including capitalized interest of $127,000 and $77,000 at July 31, 2009 and 2008,
respectively, as a reduction in stockholders’ equity. We recorded interest on these loans of $13,000 for the
five months ended December 31, 2009 and $50,000 and $36,000 for the years ended July 31, 2009 and
2008, respectively, as additional paid-in-capital.
We loaned $120,000 in February 2008 to our current Chief Financial Officer to purchase common
stock. The loan had an interest rate of 3.48%, compounded semiannually. All principal and unpaid interest
outstanding under the loan was due in February 2015. The loan was collateralized by 85,000 shares of our
common stock owned by the officer and a full recourse promissory note. We classified the outstanding
balance of the loan, including capitalized interest of $7,000 and $2,000 at July 31, 2009 and 2008,
respectively, as a reduction in stockholders’ equity. We recorded interest on the loan of $1,000 for the five
months ended December 31, 2009 and $5,000 and $2,000 for the years ended July 31, 2009 and 2008,
respectively, as additional paid-in-capital.
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GREEN DOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)