Stamps.com 2002 Annual Report Download - page 55

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Table of Contents
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Aggregate amortization expense on patents and trademarks was approximately $1.1 million, $751,000 and $56,000 for the years ended
December 31, 2002, 2001 and 2000, respectively. Amortization expense is expected to be approximately $1.1 million in each of the next five
fiscal years.
The following table presents net loss on a comparable basis, after adjustment for goodwill amortization (in thousands, except per share
amounts):
Years Ended December 31,
2002 2001 2000
Reported net loss $ (6,847 ) $ (209,573 ) $ (212,949 )
Add back: goodwill amortization — 8,816 45,038
Adjusted net loss $ (6,847 ) $ (200,857 ) $ (170,211 )
Basic and diluted loss per share
As reported (0.14 ) (4.14 ) (4.54 )
As adjusted (0.14 ) (3.97 ) (3.63 )
4.The Acquisition, Investment in and Sale of Subsidiary
On March 7, 2000, the Company completed the acquisition of iShip.com, Inc., a development stage enterprise developing Internet-based
shipping technology. In connection with the acquisition, approximately 5.6million shares of Stamps.com common stock were issued in
exchange for all outstanding iShip.com, Inc. stock. An additional 1.6 million shares of Stamps.com common stock were reserved for issuance
upon exercise of options and warrants assumed in the transaction.
The acquisition was accounted for as a purchase in accordance with the provisions of APB No. 16. Under the purchase method of accounting,
the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The
Company recorded intangible assets of $222.4 million and deferred compensation of $24.7 million, which was to be amortized over periods
ranging from three to four years, except for in-process research and development which was written off immediately after the acquisition, which
is included in research and development expense in the accompanying statements of operations. Results of operations for iShip.com, Inc. have
been included with those of the Company for periods subsequent to the acquisition date.
The purchase price was allocated as follows (in thousands):
Goodwill $
209,188
Deferred compensation 24,662
Purchased technology 11,200
In-process research and development 2,000
Tangible assets acquired 8,931
Liabilities assumed (7,232 )
Purchase price $
248,749
F-12
2003. EDGAR Online, Inc.