Stamps.com 2001 Annual Report Download - page 54

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STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
Company invested $1.0 million and granted EncrypTix a license to its technology in those three specific fields of use. During the first half of
2000, the Company sold approximately 42% of EncrypTix, Inc., until then a wholly owned subsidiary, in a private financing of approximately
$34.8 million. The financing was completed in April 2000.
On March 12, 2001, EncrypTix ceased operations and effected a general assignment of its assets for the benefit of its creditors. EncrypTix took
this action due to the inability to secure additional funding. The Company does not expect to be impacted by any of EncrypTix's resulting
liabilities. Additionally, the Company terminated its license agreement with EncrypTix and maintains limited licenses to various EncrypTix
intellectual property. Due to this cessation in business, the Company wrote off the invested $1.0 million and took a one-time gain to eliminate
the cumulative loss from EncrypTix in the amount of $23.2 million in the first quarter of 2001.
The Company includes EncrypTix's balances and results in its consolidated financial statements. The minority interest reflected in the attached
consolidated balance sheet represents the investment received in the private financing.
4. Segment Information
SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information" establishes standards of reporting information
regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim
financial reports issued to stockholders. The Company operates in a single segment and therefore no additional disclosure is required.
F-11
2002. EDGAR Online, Inc.