Stamps.com 2002 Annual Report Download - page 56

Table of Contents
STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Presented below is unaudited selected pro forma financial information, presenting the results of operations of the Company as if the acquisition
had taken place on January 1 (in thousands, except per share amounts):
Year Ended December31,
2000
(unaudited)
Proforma revenues $ 15,234
Proforma net loss $ (215,326 )
Proforma basic and diluted net loss per share $ (3.93 )
Proforma weighted average shares used in per share calculation—basic and
diluted
54,802
The unaudited pro forma information is not necessarily indicative of the actual results of operations had the acquisition occurred at the
beginning of the periods indicated, nor should it be indicative of operations for any future date or period.
On March 2, 2001, United Parcel Service and Mail Boxes Etc. USA, Inc. (MBE) jointly announced that United Parcel Service would acquire
MBE. MBE represented a significant future source of revenue and market leverage for the Company’ s enterprise shipping services that were
acquired in the iShip acquisition. United Parcel Service also informed the Company that it is unlikely to have MBE continue to use the
Company’ s enterprise shipping services in the future. As a result of the March 2001 events, the Company reduced goodwill and other
intangibles associated with the purchase of iShip to estimated net realizable value. This resulted in a non-cash charge of $163.6 million in the
first quarter of 2001.
On May 18, 2001, the Company completed the sale of its iShip multi-carrier shipping service assets to United Parcel Service for $2.8 million.
The difference between the sale price of iShip and the assets value attributed to iShip by the Company resulted in non-cash charge of $9.1
million in the second quarter of 2001. Additional legal costs associated with the sale of iShip in the amount of $0.3 million were charged in the
third quarter of 2001 resulting in a total charge of $9.4 million in 2001. For the year ended December 31, 2002, the Company had no additional
costs associated with the sale of its iShip multi-carrier shipping service assets.
Change in Ownership and Shut-down of Subsidiary
On November 16, 1999, the Company announced the formation of a subsidiary, EncrypTix, Inc., to develop secure printing opportunities in the
events, travel and financial services industries. In February 2000, the 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.
F-13
2003. EDGAR Online, Inc.