Stamps.com 2015 Annual Report Download - page 29

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TABLE OF CONTENTS
• announcementsofdevelopmentsaffectingourbusiness,systemsorexpansionplansbyusorothers,and
•marketvolatilityingeneral.
Asaresultoftheseandotherfactors,investorsinourcommonstockmaynotbeabletoreselltheirsharesatorabovetheir
originalpurchaseprice.Inthepast,securitiesclassactionlitigationoftenhasbeeninstitutedagainstcompaniesfollowingperiodsof
volatilityinthemarketpriceoftheirsecurities.Thistypeoflitigation,ifdirectedatus,couldresultinsubstantialcostsandadiversion
ofmanagement’sattentionandresources.
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
ITEM 2. PROPERTIES.
OurcorporateheadquartersarelocatedinElSegundo,Californiawhereweowna99,600squarefootfacility.Wehave
approximately29,000squarefeetinMountainView,CaliforniaunderaleaseexpiringinOctober2018;14,000squarefeetinAustin,
TexasunderaleaseexpiringinJune2021;and10,000squarefeetinStLouis,MissouriunderaleaseexpiringinJune2022.We
believethatourexistingfacilitiesaresuitableandadequateforourpresentpurposes.
ITEM 3. LEGAL PROCEEDINGS.
OnAugust14,2014,RapidEnterprises,LLC,D/B/AExpressOne,filedsuitagainstShipStationandsomeofitsexecutivesinthe
ThirdJudicialDistrictCourtforSaltLakeCounty,Utah,alleging,amongotherclaims,thatShipStationbreacheditscontractwith
ExpressOnebyviolatinganexclusivityprovision.ExpressOnesoughtaninjunction,damages,attorneys’feesandcourtcosts.On
December12,2014,ExpressOneaddedadditionalclaimsandStamps.comandourChiefExecutiveOfficerasnameddefendants.
OnAugust6,2015,Stamps.comandExpressOneenteredintoasettlementagreementthatresolvedalldisputesbetweenthe
parties.Stamps.comagreedtopayExpressOne$10.0millioninexchangeforExpressOne’sdismissalandpermanentwithdrawalof
ExpressOne’stortclaims.Inaddition,thepartiesagreedtocontinueandexpandtheirbusinessrelationshipgoingforward.Theamount
wasexpensedandpaidin2015.
ExpressOneisasalesandsupportbusinesspartnerfortheUnitedStatesPostalServicethatprovidesdiscountedshippingrates
andtechnologysolutionstolowervolumeUSPSshippers.ThroughourpartnershipwithExpressOne,Stamps.comandoursubsidiaries
areabletoprovideExpressOne’sshippingdiscountstoourlowervolumecustomers,andExpressOneisabletoutilizeoursystems
andsoftwaretobetterserveitscustomers.
Wearealsosubjecttovariousroutinelegalproceedingsandclaimsincidentaltoourbusiness,andwedonotbelievethatthese
proceedingsandclaimswouldreasonablybeexpectedtohaveamaterialadverseeffectonourfinancialposition,resultsofoperations
orcashflows.
ITEM 4. MINE SAFETY DISCLOSURES.
Notapplicable.
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