Support.com 2014 Annual Report Download - page 31

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Table of Contents
Net cash provided by operating activities during 2012 was the result of net loss for the period of $5.4 million, adjusted for non-cash items totaling $7.2 million and changes in operating assets and liabilities of
$157,000. Adjustment for non-cash items primarily consisted of stock-based compensation expense of $4.5 million, amortization of intangible assets and other of $1.5 million, amortization of premiums and discounts
on investments of $588,000 and depreciation of $503,000. The changes in operating assets and liabilities primarily consisted of an increase in deferred revenue of $1.4 million due to an increase in sales of services
for which revenues are recognized ratably partially offset by a decrease in accounts payable and accrued compensation and other accrued liabilities of $1.3 million due to the timing of payments.
Investing Activities
Net cash provided by (used in) investing activities was $(7.5) million for the year ended December 31, 2014, $(19.4) million for the year ended December 31, 2013, and $3.2 million for the year ended
December 31, 2012. Net cash used in investing activities in 2014 was primarily due to purchases of investments of $63.5 million offset by sales and maturities of investments of $56.3 million, and purchases of
property and equipment of $231,000. Net cash used in investing activities in 2013 was primarily due to purchases of investments of $61.8 million offset by sales and maturities of investments of $42.6 million, and
purchases of property and equipment of $221,000. Net cash provided by investing activities in 2012 was primarily due to sales and maturities investments of $42.9 million offset by the purchases of investments of
$37.8 million, acquisition of RightHand IT Corporation for $1.3 million and purchases of property and equipment of $523,000.
Financing Activities
Net cash provided by financing activities was $1.1 million for the year ended December 31, 2014, $7.0 million for the year ended December 31, 2013, and $3.5 million for the year ended December 31, 2012. In
2014, cash generated by financing activities was primarily attributable to the exercise of employee stock options and the purchase of common stock under employee stock purchase plans. Net cash provided by
financing activities in 2013 was from the proceeds of exercises of employee stock options (and the purchase of common stock under employee stock purchase plans of $11.0 million offset by the repurchase of shares
of $4.1 million (net repurchase of $1.8 million after considering proceeds from the exercise of stock options that resulted in shares that were repurchased). In 2012, cash generated by financing activities was primarily
attributable to the exercise of employee stock options and the purchase of common stock under employee stock purchase plans.
Working Capital and Capital Expenditure Requirements
At December 31, 2014, we had stockholders’ equity of $95.7 million and working capital of $79.8 million. We believe that our existing cash balances will be sufficient to meet our working capital requirements for
at least the next 12 months.
If we require additional capital resources to grow our business internally or to acquire complementary technologies and businesses at any time in the future, we may seek to sell additional equity or debt
securities. The sale of additional equity could result in more dilution to our stockholders.
We plan to continue to make investments in our business during 2015. We believe these investments are essential to creating sustainable growth in our business in the future. Additionally, we may choose to
acquire other businesses or complimentary technologies to enhance our product capabilities and such acquisitions would likely require the use of cash.
Contractual Obligations
The following table summarizes our contractual obligations at December 31, 2014 and the effect these contractual obligations are expected to have on our liquidity and cash flows in future periods (in
thousands):
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