| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Years Ended December 31, |
|
|
|
|
|
1997 |
|
1998 |
|
1999 |
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(55,582 |
) |
|
$ |
(82,106 |
) |
|
$ |
(85,085 |
) |
|
|
|
|
|
|
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
16,852 |
|
|
|
24,442 |
|
|
|
28,404 |
|
|
|
|
|
|
|
|
Amortization of deferred interest, cost of revenue and marketing
and sales related to issuance of warrants |
|
|
1,720 |
|
|
|
1,210 |
|
|
|
1,433 |
|
|
|
|
|
|
|
|
Amortization of goodwill and other intangible assets |
|
|
— |
|
|
|
3,842 |
|
|
|
7,913 |
|
|
|
|
|
|
|
|
Amortization of deferred financing costs |
|
|
— |
|
|
|
526 |
|
|
|
721 |
|
|
|
|
|
|
|
|
Amortization of other deferred assets |
|
|
— |
|
|
|
3,025 |
|
|
|
1,989 |
|
|
|
|
|
|
|
|
Amortization of deferred compensation |
|
|
658 |
|
|
|
373 |
|
|
|
373 |
|
|
|
|
|
|
|
|
Gain on early retirement of debt |
|
|
— |
|
|
|
(3,042 |
) |
|
|
— |
|
|
|
|
|
|
|
|
Write-off of in-process technology |
|
|
— |
|
|
|
5,200 |
|
|
|
— |
|
|
|
|
|
|
|
|
Loss on disposal of equipment |
|
|
162 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
Changes in current assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
(3,581 |
) |
|
|
1,009 |
|
|
|
(7,765 |
) |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(2,700 |
) |
|
|
(7,140 |
) |
|
|
(16,517 |
) |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
(7,287 |
) |
|
|
7,408 |
|
|
|
3,495 |
|
|
|
|
|
|
|
|
|
Accrued compensation and other employee benefits |
|
|
863 |
|
|
|
(315 |
) |
|
|
1,538 |
|
|
|
|
|
|
|
|
|
Deferred revenue |
|
|
197 |
|
|
|
509 |
|
|
|
1,632 |
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
|
2,795 |
|
|
|
(1,575 |
) |
|
|
794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(45,903 |
) |
|
|
(46,634 |
) |
|
|
(61,075 |
) |
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in restricted cash |
|
|
— |
|
|
|
— |
|
|
|
(124,935 |
) |
|
|
|
|
|
|
Additions of property and equipment |
|
|
(6,130 |
) |
|
|
(23,489 |
) |
|
|
(41,719 |
) |
|
|
|
|
|
|
Proceeds from sale of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
135 |
|
|
|
|
|
|
|
Increase in refundable deposits |
|
|
— |
|
|
|
(1,200 |
) |
|
|
— |
|
|
|
|
|
|
|
Decrease (increase) in note receivable |
|
|
(370 |
) |
|
|
100 |
|
|
|
(15,830 |
) |
|
|
|
|
|
|
Net change in short term investments |
|
|
— |
|
|
|
(52,226 |
) |
|
|
(27,869 |
) |
|
|
|
|
|
|
Net change in long term investments |
|
|
— |
|
|
|
— |
|
|
|
(27,101 |
) |
|
|
|
|
|
|
Acquisition of InterNex Information Services, Inc., net of cash
acquired |
|
|
— |
|
|
|
(15,452 |
) |
|
|
— |
|
|
|
|
|
|
|
Acquisition of AnaServe, Inc., net of cash acquired |
|
|
— |
|
|
|
(9,625 |
) |
|
|
— |
|
|
|
|
|
|
|
Acquisition of 9Net Avenue Inc., net of cash acquired |
|
|
— |
|
|
|
— |
|
|
|
(796 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(6,500 |
) |
|
|
(101,892 |
) |
|
|
(238,115 |
) |
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from notes payable |
|
|
155,000 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
Change in restricted cash |
|
|
(52,525 |
) |
|
|
16,287 |
|
|
|
17,113 |
|
|
|
|
|
|
|
Repayment of lease obligations to a related party |
|
|
(10,039 |
) |
|
|
(3,079 |
) |
|
|
— |
|
|
|
|
|
|
|
Repayment of lease obligations to a related party —
early retirement of debt |
|
|
— |
|
|
|
(24,750 |
) |
|
|
— |
|
|
|
|
|
|
|
Repayment of lease obligations |
|
|
(1,517 |
) |
|
|
(7,079 |
) |
|
|
(5,823 |
) |
|
|
|
|
|
|
Net change in notes payable |
|
|
(2,000 |
) |
|
|
(1,960 |
) |
|
|
326 |
|
|
|
|
|
|
|
Repurchase of common stock |
|
|
(2,765 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
Deferred financing costs |
|
|
(5,006 |
) |
|
|
(320 |
) |
|
|
(4,021 |
) |
|
|
|
|
|
|
Proceeds from issuance of redeemable exchangeable preferred
stock, net of issuance costs |
|
|
— |
|
|
|
144,148 |
|
|
|
50,000 |
|
|
|
|
|
|
|
Proceeds from issuances of stock and warrants |
|
|
73,557 |
|
|
|
4,308 |
|
|
|
168,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
154,705 |
|
|
|
127,555 |
|
|
|
226,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
|
|
102,302 |
|
|
|
(20,971 |
) |
|
|
(73,097 |
) |
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
17,657 |
|
|
|
119,959 |
|
|
|
98,988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
119,959 |
|
|
$ |
98,988 |
|
|
$ |
25,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock exchanged for notes payable, including accrued interest |
|
$ |
3,041 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
Capital lease obligations incurred with a related party |
|
|
23,042 |
|
|
|
1,285 |
|
|
|
— |
|
|
|
|
|
|
|
Capital lease obligations incurred |
|
|
— |
|
|
|
5,363 |
|
|
|
1,385 |
|
|
|
|
|
|
|
Reduction of accounts payable through capital lease obligations
incurred |
|
|
2,000 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
Issuance of warrants |
|
|
5,370 |
|
|
|
1,900 |
|
|
|
11,940 |
|
|
|
|
|
|
|
Accretion of dividends and financing costs |
|
|
— |
|
|
|
11,958 |
|
|
|
26,697 |
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
5,728 |
|
|
$ |
22,609 |
|
|
$ |
20,998 |
|
