Stamps.com 2014 Annual Report Download - page 45

During 2013, we recorded current tax provision for corporate alternative minimum federal and state taxes of approximately $158,000. During
2012, we recorded current tax provision for corporate alternative minimum federal and state taxes of approximately $565,000. The decrease in
current tax provision in 2013 compared to 2012 is primarily due to lower taxable income in 2013 as a result of a change in California state tax
laws and additional temporary differences.
Liquidity and Capital Resources
As of December 31, 2014 and 2013, we had $58 million and $87 million, respectively, in cash, cash equivalents and short-term and long-term
investments. We invest available funds in short-term and long-term securities, including money market funds, corporate bonds, asset backed
securities, and US government and agency bonds, and do not engage in hedging or speculative activities.
Net cash provided by operating activities was approximately $52 million and $36 million in 2014 and 2013, respectively. The increase in net
cash provided by operating activities was primarily attributable to the growth in our revenue and changes in our operating assets and liabilities.
Net cash used in investing activities was approximately $69 million and $9 million in 2014 and 2013, respectively. The increase in net cash used
in investing activities was primarily due to the acquisition of ShipStation and ShipWorks (see Note 3 – “Acquisitions” in our Notes to
Consolidated Financial Statements).
Net cash used in financing activities was approximately $8 million in 2014. Net cash provided by financing activities was approximately $10
million in 2013. The increase in net cash used in financing activities is primarily due to the increase of stock purchased through our stock
repurchase program, partially offset by the decrease in proceeds from employee stock options exercises.
The following table is a schedule of our significant contractual obligations and commercial commitments, which consist only of future minimum
lease payment under operating leases as of December 31, 2014 (in thousands):
We believe our available cash and marketable securities, together with the cash flow from operations, will be sufficient to fund our business for
at least the next twelve months.
Section 382 Update
We currently have federal and state NOL carry-forwards of approximately $165 million and $8 million, respectively. Under Internal Revenue
Code Section 382 rules, if a “change of ownership” is triggered, our NOL asset may be impaired. A change in ownership can occur whenever
there is a shift in ownership by more than 50 percentage points by one or more “5% shareholders” within a three-year period. We estimate that
as of December 31, 2014 we were at approximately 11% level compared with the 50% level that would trigger impairment of our NOL asset.
Under our certificate of incorporation, any person, company or investment firm that wishes to become a “5% shareholder” (as defined in our
certificate of incorporation) must first obtain a waiver from our board of directors. In addition, any person, company or investment firm that is
already a “5% shareholder” of ours cannot make any additional purchases of our stock without a waiver from our board of directors. The NOL
protective provisions contained in our certificate of incorporation (the “NOL Protective Measures”) are more specifically described in our
Definitive Proxy filed with the Securities and Exchange Commission on April 2, 2008.
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Table of Contents
Twelve Month Period Ending December 31,
Operating
Lease Obligations
2015
$
502
2016
261
2017
266
2018
271
Thereafter
—