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TABLE OF CONTENTS
Report of Independent Registered Public Accounting Firm
TheBoardofDirectorsandStockholdersof
Stamps.comInc.andsubsidiaries
WehaveauditedStamps.comInc.andsubsidiaries’internalcontroloverfinancialreportingasofDecember31,2015,basedoncriteria
establishedinInternalControl—IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadway
Commission(2013Framework)(theCOSOcriteria).Stamps.comInc.andsubsidiaries’managementisresponsibleformaintaining
effectiveinternalcontroloverfinancialreporting,andforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting
includedintheaccompanyingManagement’sreportoninternalcontroloverfinancialreportingappearingunderitem9A.Our
responsibilityistoexpressanopiniononthecompany’sinternalcontroloverfinancialreportingbasedonouraudit.
WeconductedourauditinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Those
standardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethereffectiveinternalcontrolover
financialreportingwasmaintainedinallmaterialrespects.Ourauditincludedobtaininganunderstandingofinternalcontrolover
financialreporting,assessingtheriskthatamaterialweaknessexists,testingandevaluatingthedesignandoperatingeffectivenessof
internalcontrolbasedontheassessedrisk,andperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.We
believethatourauditprovidesareasonablebasisforouropinion.
Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereliabilityof
financialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccounting
principles.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertaintothe
maintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthe
company;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsin
accordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyin
accordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregarding
preventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffect
onthefinancialstatements.
Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,projections
ofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequatebecauseofchangesin
conditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
AsindicatedintheaccompanyingManagement’sreportoninternalcontroloverfinancialreporting,management’sassessmentofand
conclusionontheeffectivenessofinternalcontroloverfinancialreportingdidnotincludetheinternalcontrolsofPSISystemsInc.
whichareincludedinthe2015consolidatedfinancialstatementsofStamps.comInc.andsubsidiariesandconstitutedapproximately
$235millionoftotalassetsasofDecember31,2015,approximately$10millionofrevenuesandapproximately$2millionofnet
incomefortheyearthenended.OurauditofinternalcontroloverfinancialreportingofStamps.comInc.andsubsidiariesalsodidnot
includeanevaluationoftheinternalcontroloverfinancialreportingofPSISystems,Inc.
Inouropinion,Stamps.comInc.andsubsidiariesmaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreporting
asofDecember31,2015,basedontheCOSOcriteria.
Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates),the
consolidatedbalancesheetsofStamps.comInc.andsubsidiariesasofDecember31,2015and2014,andtherelatedconsolidated
statementsofoperations,comprehensive(loss)income,stockholders’equity,andcashflowsforeachofthethreeyearsintheperiod
endedDecember31,2015ofStamps.comInc.andsubsidiariesandourreportdatedFebruary29,2016expressedanunqualified
opinionthereon.
/s/ ERNST & YOUNG LLP
LosAngeles,California
February29,2016
50