Juno 2014 Annual Report Download - page 66

Table of Contents
vary based on our stock price and the number of applicable restricted stock units vesting during the period.
On an ongoing basis, we assess opportunities for improved operational effectiveness and efficiency, which may result in restructuring. Although
restructuring efforts may reduce expenses and generate improved operating efficiencies, there can be no assurances that our restructuring efforts will be
successful. In addition, past restructuring activities may not be a good indication of future restructuring opportunities, and any restructuring of our businesses
may leave us with reduced financial and marketing resources to develop products and services to compete against our competitors. We recorded restructuring
and other exit costs totaling $3.6 million in the year ended December 31, 2014, which consisted of $3.2 million and $0.4 million of employee termination
costs and facility closure and relocation costs, respectively. During the year ended December 31, 2014, we paid $3.6 million of restructuring and other exit
costs. At December 31, 2014, accrued restructuring and other exit costs totaled $0.2 million, which will be paid within 12 months.
Based on our current projections, we expect to continue to generate positive cash flows from operations, at least for the next 12 months. We may use our
existing cash balances and future cash generated from operations to fund, among other things, long-term growth initiatives, which may include optimizing
our current product offerings to enhance our consumer value proposition, expanding new product development efforts to drive new revenue growth, and
pursuing acquisitions, new strategic partnerships and other opportunities to expand our scope and reach; the repurchase of our common stock underlying
restricted stock units to pay the minimum statutory employee withholding taxes due on vested restricted stock units; the repurchase of our common stock
under the Program; future capital expenditures; and future acquisitions of intangible assets, including rights, content and intellectual property.
We are now a substantially smaller company than we were prior to the consummation of the FTD Spin-Off Transaction, and we anticipate that our
consolidated cash flows will be substantially lower when compared to periods prior to the FTD Spin-Off Transaction.
If we need to raise additional capital through public or private debt or equity financings, strategic relationships or other arrangements, this capital might
not be available to us in a timely manner, on acceptable terms, or at all. Our failure to raise sufficient capital when needed could severely constrain or prevent
us from, among other factors, long-term growth initiatives, which may include optimizing our current product offerings to enhance our consumer value
proposition, expanding new product development efforts to drive new revenue growth, and pursuing new strategic partnerships and other opportunities to
expand our scope and reach; the repurchase of our common stock underlying restricted stock units to pay the minimum statutory employee withholding taxes
due on vested restricted stock units; the repurchase of our common stock under the Program; future capital expenditures; and future acquisitions of intangible
assets, including rights, content and intellectual property, and may have a material adverse effect on our business, financial position, results of operations,
and cash flows, as well as impair our ability to pay future dividends and our ability to service our debt obligations. If additional funds were raised through the
issuance of equity or convertible debt securities, the percentage of stock owned by the then-current stockholders could be reduced. Furthermore, such equity
or any debt securities that we issue might have rights, preferences or privileges senior to holders of our common stock. In addition, trends in the securities and
credit markets may restrict our ability to raise any such additional funds, at least in the near term.
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