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in process research and development, net operating losses, increases of accounts receivable and decreases in accrued expenses. Net cash used 

by operating activities was $11.8 million in 1999. Cash used in operating activities for the year ended December 31, 1999 consisted primarily 

of net operating losses offset by increases in accrued expenses and the discount on the issuance of preferred stock by Go2Net accounted for as a 

non cash dividend.  

Net cash provided by investing activities was $21.9 million in the year ended December 31, 2001. Cash provided by investing activities 

was primarily a result of reinvesting in securities with an original maturity of 90 days or less which are classified as cash equivalents. 

Offsetting the $75.0 million of short and long term investment maturities and the $2.7 million proceeds from the sale of a segment of the 

Liaison enterprise solution business was $11.0 million in equity investments, $12.0 million in purchases of fixed assets, $16.6 million in 

business acquisition costs from the Locus Dialogue, Excite.com and GiantBear acquisitions and $16.4 million for the buyout of the minority 

interest ownership in the Venture Fund. Net cash used by investing activities was $5.6 million in the year ended December 31, 2000. During 

that period, cash used in investing activities was primarily comprised of costs associated with the acquisition of Prio, notes receivable 

additions, purchase of fixed assets and equity investments. The cash used in investing activities was partially offset by cash received from the 

minority interest of the Venture Fund and maturities of debt investments. Net cash used by investing activities for the year ended December 31, 

1999 of $423.3 million was primarily composed of business acquisitions, securities investments, other investments and purchase of fixed 

assets.  

Net cash used by financing activities in the year ended December 31, 2001 was $16.3 million. $22.8 million was used in the share 

repurchase from Vulcan Ventures. $3.1 million was used to payoff the acquired debt of Locus Dialogue. Cash proceeds from financing 

activities were comprised of $9.6 million from the exercise of stock options and warrants and from share purchases through our employee stock 

purchase plan. Net cash provided by financing activities for the year ended December 31, 2000 of $38.3 million was primarily comprised of 

our net proceeds from the exercise of stock options and warrants, offset by payments of debt acquired in the Prio and Saraide acquisitions. Cash 

provided by financing activities in 1999 was $498.3 million and was primarily comprised of our net proceeds from our follow on offering in 

April 1999 and the net proceeds from the March and June 1999 preferred stock issuance by Go2Net.  

We plan to use our cash for investments in internally developed technology, global expansion of our services and continued build out of 

infrastructure in the United States and Europe. We may use our cash for acquisitions of complimentary businesses and technologies, a stock 

repurchase program or the build out of a redundant data center. We have non cancelable operating leases for our corporate facilities with lease 

terms through 2005. Future minimum rental payments required under non cancelable operating leases are: $13.2 million in 2002, $6.4 million 

in 2003, $6.0 million in 2004, $3.0 million in 2005 and $417,000 thereafter. Included in the 2002 commitments is $4.4 million for a buyout 

payment in connection with the lease for our Seattle facility, which is included in our 2001 restructuring charge. The Seattle facility was the 

corporate headquarters of Go2Net prior to our merger with Go2Net in October 2000. This buyout releases us of all future obligations under that 

lease including approximately $9.0 million of scheduled lease payments over the life of that lease.  

We believe that existing cash balances, cash equivalents, short and long term investments and cash generated from operations will be 

sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months. However, the 

underlying assumed levels of revenues and expenses are subject to a number of conditions and uncertainties, some of which are out of our 

control, and actual revenues and expenses may be materially different. We may seek additional funding through public or private financings or 

other arrangements prior to such time. However, any projections of future cash needs and cash flows are subject to substantial uncertainty. 

Adequate funds may not be available when needed or may not be available on favorable terms. If we raise additional funds by issuing equity 

securities, dilution to existing stockholders will result. If funding is insufficient at any time in the future, we may be unable to develop or 

enhance our products or services, take advantage of business opportunities or respond to competitive pressures, any of which could harm our 

business.  

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