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Event Codes
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Wiki	Wiki Summary
Operation Mincemeat	Operation Mincemeat was a successful British deception operation of the Second World War to disguise the 1943 Allied invasion of Sicily. Two members of British intelligence obtained the body of Glyndwr Michael, a tramp who died from eating rat poison, dressed him as an officer of the Royal Marines and placed personal items on him identifying him as the fictitious Captain (Acting Major) William Martin.
Operations management	Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Emergency operations center	An emergency operations center (EOC) is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision or other organization.\nAn EOC is responsible for strategic direction and operational decisions and does not normally directly control field assets, instead leaving tactical decisions to lower commands.
Operations research	Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Surgery	Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
Operation (mathematics)	In mathematics, an operation is a function which takes zero or more input values (called operands) to a well-defined output value. The number of operands (also known as arguments) is the arity of the operation.
Common stock dividend	A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of either cash or stock.
Preferred stock	Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred stocks are senior (i.e., higher ranking) to common stock but subordinate to bonds in terms of claim (or rights to their share of the assets of the company, given that such assets are payable to the returnee stock bond) and may have priority over common stock (ordinary shares) in the payment of dividends and upon liquidation.
Matthiola incana	Matthiola incana is a species of flowering plant in the cabbage family Brassicaceae. Common names include Brompton stock, common stock, hoary stock, ten-week stock, and gilly-flower.
Treasury stock	A treasury stock or reacquired stock is stock which is bought back by the issuing company, reducing the amount of outstanding stock on the open market ("open market" including insiders' holdings). \nStock repurchases are used as a tax efficient method to put cash into shareholders' hands, rather than paying dividends, in jurisdictions that treat capital gains more favorably.
United States Postal Service	The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states. It is one of the few government agencies explicitly authorized by the United States Constitution.
Financial statement	Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.\nRelevant financial information is presented in a structured manner and in a form which is easy to understand.
Technology	Technology is the result of accumulated knowledge and application of skills, methods, and processes used in industrial production and scientific research. Technology is embedded in the operation of all machines, with or without detailed knowledge of their function, for the intended purpose of an organization.
Technology company	A technology company (or tech company) is an electronics-based technological company, including, for example, business relating to digital electronics, software, and internet-related services, such as e-commerce services.\n\n\n== Details ==\nAccording to Fortune, as of 2020, the ten largest technology companies by revenue are: Apple Inc., Samsung, Foxconn, Alphabet Inc., Microsoft, Huawei, Dell Technologies, Hitachi, IBM, and Sony.
Information technology consulting	In management, information technology consulting (also called IT consulting, computer consultancy, business and technology services, computing consultancy, technology consulting, and IT advisory) is a field of activity which focuses on advising organizations on how best to use information technology (IT) in achieving their business objectives.\nOnce a business owner defines the needs to take a business to the next level, a decision maker will define a scope, cost and a time frame of the project.
Language technology	Language technology, often called human language technology (HLT), studies methods of how computer programs or electronic devices can analyze, produce, modify or respond to human texts and speech. Working with language technology often requires broad knowledge not only about linguistics but also about computer science.
Non-disclosure agreement	A non-disclosure agreement (NDA), also known as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), secrecy agreement (SA), or non-disparagement agreement, is a legal contract or part of a contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to. Doctor–patient confidentiality (physician–patient privilege), attorney–client privilege, priest–penitent privilege and bank–client confidentiality agreements are examples of NDAs, which are often not enshrined in a written contract between the parties.
L.A. Confidential (film)	L.A. Confidential is a 1997 American neo-noir crime film directed, produced, and co-written by Curtis Hanson. The screenplay by Hanson and Brian Helgeland is based on James Ellroy's 1990 novel of the same name, the third book in his L.A. Quartet series.
Lahore Confidential	Lahore Confidential is a 2021 Indian Hindi-language spy thriller film which was premiered on ZEE5 in February 2021. The film is directed by Kunal Kohli.
City Confidential	City Confidential is an American documentary television show, originally transmitted on the A&E Network, which singled out a community during each episode and investigated a crime that had occurred there. Rather than being a straightforward procedural, the installments began by focusing on the history and spirit of the city chosen.
The Postal Service	The Postal Service was an American indie pop supergroup from Seattle, Washington, consisting of singer Ben Gibbard, producer Jimmy Tamborello, and Jenny Lewis on background vocals.\nThe band released their debut album, Give Up, in 2003 on Sub Pop Records, to mostly positive reviews.
History of United States postage rates	The system for mail delivery in the United States has developed with the nation. Rates were based on the distance between sender and receiver in the early years of the nation.
Postal Service Reform Act of 2022	The Postal Service Reform Act of 2022 is a federal statute intended to address "the finances and operations of the U.S. Postal Service (USPS)", specifically to lift budget requirements imposed on the Service by the Postal Accountability and Enhancement Act and require it to continue six day a week delivery of mail.The act was first introduced on May 11, 2021, by Representative Carolyn Maloney (D-NY). The House of Representatives then passed the bill by 342–92 on February 8, 2022.
Postal worker	A postal worker is one who works for a post office, such as a mail carrier. In the U.S., postal workers are represented by the National Association of Letter Carriers, AFL–CIO, National Postal Mail Handlers Union – NPMHU, the National Association of Rural Letter Carriers and the American Postal Workers Union, part of the AFL–CIO. In Canada, they are represented by the Canadian Union of Postal Workers and in the United Kingdom by the Communication Workers Union.
List of U.S. state and territory abbreviations	Several sets of codes and abbreviations are used to represent the political divisions of the United States for postal addresses, data processing, general abbreviations, and other purposes.\n\n\n== Table ==\n\nThis table includes abbreviations for three independent countries related to the United States through Compacts of Free Association, and other comparable postal abbreviations, including those now obsolete.
2020 United States Postal Service crisis	The 2020-2021 United States Postal Service crisis is a series of events that have caused backlogs and delays in the delivery of mail by the United States Postal Service (USPS). The crisis stems primarily from changes implemented by Postmaster General Louis DeJoy shortly after taking office in June 2020.
Regulation A	In the United States under the Securities Act of 1933, any offer to sell securities must either be registered with the United States Securities and Exchange Commission (SEC) or meet certain qualifications to exempt it from such registration. Regulation A (or Reg A) contains rules providing exemptions from the registration requirements, allowing some companies to use equity crowdfunding to offer and sell their securities without having to register the securities with the SEC. Regulation A offerings are intended to make access to capital possible for small and medium-sized companies that could not otherwise bear the costs of a normal SEC registration and to allow nonaccredited investors to participate in the offering.
Regulation of therapeutic goods	The regulation of therapeutic goods, defined as drugs and therapeutic devices, varies by jurisdiction. In some countries, such as the United States, they are regulated at the national level by a single agency.
Formula One regulations	The numerous Formula One regulations, made and enforced by the FIA and later the FISA, have changed dramatically since the first Formula One World Championship in 1950. This article covers the current state of F1 technical and sporting regulations, as well as the history of the technical regulations since 1950.
New York Codes, Rules and Regulations	The New York Codes, Rules and Regulations (NYCRR) contains New York state rules and regulations. The NYCRR is officially compiled by the New York State Department of State's Division of Administrative Rules.
Market requirements document	A market requirements document (MRD) in project management and systems engineering, is a document that expresses the customer's wants and needs for the product or service.\nIt is typically written as a part of product marketing or product management.
Requirements elicitation	In requirements engineering, requirements elicitation is the practice of researching and discovering the requirements of a system from users, customers, and other stakeholders. The practice is also sometimes referred to as "requirement gathering".
System requirements specification	A System Requirements Specification (SyRS) (abbreviated SysRS when need to be distinct from a software requirements specification (SRS)) is a structured collection of information that embodies the requirements of a system.A business analyst (BA), sometimes titled system analyst, is responsible for analyzing the business needs of their clients and stakeholders to help identify business problems and propose solutions. Within the systems development life cycle domain, the BA typically performs a liaison function between the business side of an enterprise and the information technology department or external service providers.

Risk Factors
Risk Factors You should carefully consider the following risks and the other information in this Report and our other filings with the SEC before you decide to invest in our company or to maintain or increase your investment
The risks and uncertainties described below are not the only ones facing Stamps
Additional risks and uncertainties may also adversely impact and impair our business
If any of the following risks actually occur, our business, results of operations or financial condition would likely suffer
In that case, the trading price of our common stock could decline, and you may lose all or part of your investment
This Report contains forward-looking statements based on the current expectations, assumptions, estimates and projections about Stamps
These forward-looking statements involve risks and uncertainties
Our actual results could differ materially from those discussed in these forward-looking statements as a result of many factors, including those described in this section and elsewhere in this Report
com does not undertake to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future
Risks Related to Our Business We may not successfully implement strategies to increase the adoption of our services and products which would limit our growth, adversely affect our business and cause the price of our common stock to decline
Our continuing profitability depends on our ability to successfully implement our strategy of increasing the adoption of our services and products
Factors that might cause our revenues, margins and operating results to fluctuate include the factors described in the subheadings below as well as: · The costs of our marketing programs to establish and promote the Stamps
com brands; · The demand for our services and products; · Our ability to develop and maintain strategic distribution relationships; · The number, timing and significance of new products or services introduced by us and by our competitors; · Our ability to develop, market and introduce new and enhanced products and services on a timely basis; · The level of service and price competition; · Our operating expenses; · US Postal Service regulation and policies relating to PC Postage and PhotoStamps; and · General economic factors
We have a history of losses and we may incur losses in the future which may reduce the trading price of our common stock
We have experienced significant net losses since our inception and we may experience net losses in the future
Though we realized net income of dlra10dtta4 million for the year ended December 31, 2005, we incurred net losses of dlra4dtta7 million for the year ended December 31, 2004
^ Although we achieved profitability during fiscal year 2005, we cannot be certain that we will be able to sustain or increase such profitability in the future
We implemented pricing plans that may adversely affect our future revenues and margins
Our ability to generate gross margins depends upon the ability to generate significant revenues from a large base of active customers
In order to attract customers in the future, we may run special promotions and offers such as free trials, discounts on fees, postage and supplies, and other promotions
We cannot be sure that customers will be receptive to future fee structures and special promotions that we may implement
Even though we have established a sizeable base of users, we still may not generate sufficient gross margins to remain profitable
In addition, our ability to generate revenues or sustain profitability could be adversely affected by the special promotions or additional changes to our pricing plans
9 _________________________________________________________________ If we do not successfully attract and retain skilled personnel for permanent management and other key personnel positions, we may not be able to effectively implement our business plan
Our success depends largely on the skills, experience and performance of the members of our senior management and other key personnel
Any of the individuals can terminate his or her employment with us at any time
If we lose key employees and are unable to replace them with qualified individuals, our business and operating results could be seriously harmed
In addition, our future success will depend largely on our ability to continue attracting and retaining highly skilled personnel
As a result, we may be unable to successfully attract, assimilate or retain qualified personnel
Further, we may be unable to retain the employees we currently employ or attract additional qualified personnel to replace those key employees that may depart
The failure to attract and retain the necessary personnel could seriously harm our business, financial condition and results of operations
The success of our business will depend upon the continued acceptance by customers of our service
We must minimize the rate of loss of existing customers while adding new customers
Customers cancel their subscription to our service for many reasons, including a perception that they do not use the service sufficiently that the costs for service are too high, because they are going out of business, or other issues that are not satisfactorily resolved
We must continually add new customers both to replace customers who cancel and to continue to grow our business beyond our current customer base
If too many of our customers cancel our service, or if we are unable to attract new customers in numbers sufficient to grow our business, our operating results will be adversely affected
Further, if excessive numbers of customers cancel our service, we may be required to incur significantly higher marketing expenditures than we currently anticipate to replace these customers with new customers
If we fail to effectively market and sell our services and products, our business will be substantially harmed and could fail
In order to acquire customers and achieve widespread distribution and use of our services and products, we must develop and execute cost-effective marketing campaigns and sales programs
We currently rely on a combination of marketing techniques to attract new customers including direct mail, online marketing and business partnerships
We may be unable to continue marketing our services and products in a cost-effective manner
If we fail to acquire customers in a cost-effective manner, our results of operations will be adversely affected
If we fail to meet the demands of our customers, our business will be substantially harmed and could fail
Our services and products must meet the commercial demands of our customers, which include home businesses, small businesses, corporations and individuals
We cannot be sure that our services will appeal to or be adopted by an ever-growing range of customers
^ If we are unable to ship products such as items from our Supplies Store or PhotoStamps in a timely manner to our customers, our business may be harmed
^ Moreover, our ability to obtain and retain customers depends, in part, on our customer service capabilities
If we are unable at any time to address customer service issues adequately or to provide a satisfactory customer experience for current or potential customers, our business and reputation may be harmed
If we fail to meet the demands of our customers our results of operations will be adversely affected
A failure to further develop and upgrade our services and products could adversely affect our business
Any delays or failures in developing our services and products, including upgrades of current services and products, may have a harmful impact on our results of operations
The need to extend our core technologies into new features and services and to anticipate or respond to technological changes could affect our ability to develop these services and features
Delays in features or upgrade introductions could cause a decline in our revenue, earnings or stock price
We cannot determine the ultimate effect these delays or the introduction of new features or upgrades will have on our revenue or results of operations
Third party assertions of violations of their intellectual property rights could adversely affect our business
Substantial litigation regarding intellectual property rights exists in our industry
Third parties may currently have, or may eventually be issued, patents upon which our products or technology infringe
Any of these third parties might make a claim of infringement against us
We may become aware of, or we may increasingly receive correspondence claiming, potential infringement of other parties’ intellectual property rights
We are currently a defendant in two such cases filed in the fourth quarter of 2004
^We could incur significant costs and diversion of management time and resources to defend claims against us regardless of their validity
Any associated costs and 10 _________________________________________________________________ distractions could have a material adverse effect on our business, financial condition and results of operations
In addition, litigation in which we are accused of infringement might cause product development delays, require us to develop non-infringing technology or require us to enter into royalty or license agreements, which might not be available on acceptable terms, or at all
If a successful claim of infringement were made against us and we could not develop non-infringing technology or license the infringed or similar technology on a timely and cost-effective basis, our business could be significantly harmed or fail
Any loss resulting from intellectual property litigation could severely limit our operations, cause us to pay license fees, or prevent us from doing business
A failure to protect our own intellectual property could harm our competitive position
We rely on a combination of patent, trade secret, copyright and trademark laws and contractual restrictions, such as confidentiality agreements and licenses, to establish and protect our rights in our products, services, know-how and information
We have 53 issued US patents, 77 pending US patent applications, 12 international patents and 20 pending international patent applications
^ We also have a number of registered and unregistered trademarks
We may not receive patents for any of our patent applications
Even if patents are issued to us, claims issued in these patents may not protect our technology
In addition, a court might hold any of our patents, trademarks or service marks invalid or unenforceable
Even if our patents are upheld or are not challenged, third parties may develop alternative technologies or products without infringing our patents
If our patents fail to protect our technology or our trademarks and service marks are successfully challenged, our competitive position could be harmed
We also generally enter into confidentiality agreements with our employees, consultants and other third parties to control and limit access and disclosure of our confidential information
These contractual arrangements or other steps taken to protect our intellectual property may not prove to be sufficient to prevent misappropriation of technology or deter independent third party development of similar technologies
Additionally, the laws of foreign countries may not protect our services or intellectual property rights to the same extent as do the laws of the United States
Our services depend on the efficient and uninterrupted operation of our computer and communications hardware systems
In addition, we must provide a high level of security for the transactions we execute
We rely on internally-developed and third-party technology to provide secure transmission of postage and other confidential information
Any breach of these security measures would severely impact our business and reputation and would likely result in the loss of customers
Furthermore, if we are unable to provide adequate security, the US Postal Service could prohibit us from selling postage over the Internet
Our systems and operations are vulnerable to damage or interruption from a number of sources, including fire, flood, power loss, telecommunications failure, break-ins, earthquakes and similar events
Our Internet host provider does not guarantee that our Internet access will be uninterrupted, error-free or secure
Our servers are also vulnerable to computer viruses, physical, electrical or electronic break-ins and similar disruptions
We have experienced minor system interruptions in the past and may experience them again in the future
Any substantial interruptions in the future could result in the loss of data and could completely impair our ability to generate revenues from our service
We do not presently have a full disaster recovery plan in effect to cover the loss of facilities and equipment
In addition, we do not have a fail-over site that mirrors our infrastructure to allow us to operate from a second location
We have business inter ruption insurance; however, we cannot be certain that our coverage will be sufficient to compensate us for losses that may occur as a result of business interruptions
A significant barrier to electronic commerce and communications is the secure transmission of confidential information over public networks
Anyone who is able to circumvent our security measures could misappropriate confidential information or cause interruptions in our operations
We may be required to expend significant capital and other resources to protect against potential security breaches or to alleviate problems caused by any breach
We rely on specialized technology from within our own infrastructure to provide the security necessary for secure transmission of postage and other confidential information
Advances in computer capabilities, new discoveries in security technology, or other events or developments may result in a compromise or breach of the algorithms we use to protect customer transaction data
Should someone circumvent our security measures, our reputation, business, financial condition and results of operations could be seriously harmed
Security breaches could also expose us to a risk of loss or litigation and possible liability for failing to secure confidential customer information
As a result, we may be required to expend a significant amount of financial and other resources to protect against security breaches or to alleviate any problems that they may cause
11 _________________________________________________________________ Risks Related to Our Industry US Postal Service regulations or fee assessments may cause disruptions or discontinuance of our business
We are subject to continued US Postal Service scrutiny and other government regulations
The availability of our services is dependent upon our service continuing to meet US Postal Service performance specifications and regulations
The US Postal Service could change its certification requirements or specifications for PC Postage or revoke or suspend the approval of one or more of our services at any time
If at any time our service fails to meet US Postal Service requirements, we may be prohibited from offering this service and our business would be severely and negatively impacted
In addition, the US Postal Service could suspend or terminate our approval or offer services which compete against us, any of which could stop or negatively impact the commercial adoption of our service
Any changes in requirements or specifications for PC Postage could adversely affect our pricing, cost of revenues, operating results and margins by increasing the cost of providing our service
The US Postal Service could also decide that PC Postage should no longer be an approved postage service due to security concerns or other issues
Our business would suffer dramatically if we are unable to adapt our services to any new requirements or specifications or if the US Postal Service were to discontinue PC Postage as an approved postage method
Alternatively, the US Postal Service could introduce competitive programs or amend PC Postage requirements to make certification easier to obtain, which could lead to more competition from third parties or the US Postal Service itself
If we are unable to compete successfully, particularly against large, traditional providers of postage products like Pitney Bowes who enter the online postage market, our revenues and operating results will suffer
The US Postal Service could decide to suspend or cancel the current market test of PhotoStamps, and may do so in the event that there is sufficient cause to believe that the market test presents unacceptable risk to US Postal Service revenues, degrades the ability of the US Postal Service to process or deliver mail produced by the test participants, exposes the US Postal Service or its customers to legal liability, or causes public or political embarrassment or harm to the US Postal Service in any way
^ If the US Postal Service decides to suspend or cancel the market test of PhotoStamps, our revenues and operating results will likely suffer
Additionally, the US Postal Service could decide to amend, renegotiate or terminate our credit card cost sharing agreement, which is a key agreement that governs the allocation of credit card fees paid by the US Postal Service and us for the postage purchased by our customers
^ If the US Postal Service decides to amend, renegotiate or terminate our credit card cost sharing agreement, our revenues and operating results will likely suffer
In addition, US Postal Service regulations may require that our personnel with access to postal information or resources receive security clearance prior to doing relevant work
We may experience delays or disruptions if our personnel cannot receive necessary security clearances in a timely manner, if at all
The regulations may limit our ability to hire qualified personnel
For example, sensitive clearance may only be provided to US citizens or aliens who are specifically approved to work on US Postal Service projects
If we are unable to compete successfully, particularly against large, traditional providers of postage products such as Pitney Bowes, our revenues and operating results will suffer
The PC Postage segment of the market for postage is relatively new and is competitive
At present, Pitney Bowes and Endicia
com are authorized PC Postage providers with commercially available software and Zazzle
com offers a competitive product to PhotoStamps using Pitney Bowes technology
If any more providers become authorized, or if Pitney Bowes or Endicia
com provide enhanced offerings, our operations could be adversely impacted
^ We also compete with other forms of postage, including traditional postage meters provided by companies such as Pitney Bowes, postage stamps and permit mail
^ We may not be able to establish or maintain a competitive position against current or future competitors as they enter the market
Many of our competitors have longer operating histories, larger customer bases, greater brand recognition, greater financial, marketing, service, support, technical, intellectual property and other resources than us
As a result, our competitors may be able to devote greater resources to marketing and promotional campaigns, adopt more aggressive pricing policies and devote substantially more resources to web site and systems development than us
This increased competition may result in reduced operating margins, loss of market share and a diminished brand
We may from time to time make pricing, service or marketing decisions or acquisitions as a strategic response to changes in the competitive environment
These actions could result in reduced margins and seriously harm our business
12 _________________________________________________________________ We could face competitive pressures from new technologies or the expansion of existing technologies approved for use by the US Postal Service
We may also face competition from a number of indirect competitors that specialize in electronic commerce and other companies with substantial customer bases in the computer and other technical fields
Additionally, companies that control access to transactions through a network or Web browsers could also promote our competitors or charge us a substantial fee for inclusion
In addition, changes in postal regulations could adversely affect our service and significantly impact our competitive position
We may be unable to compete successfully against current and future competitors, and the competitive pressures we face could seriously harm our business
If we do not respond effectively to technological change, our services and products could become obsolete and our business will suffer
The development of our services, products and other technology entails significant technical and business risks
To remain competitive, we must continue to enhance and improve the responsiveness, functionality and features of our online operations
The Internet and the electronic commerce industry are characterized by rapid technological change; changes in user and customer requirements and preferences; frequent new product and service introductions embodying new technologies; and the emergence of new industry standards and practices
The evolving nature of the Internet or the postage markets could render our existing technology and systems obsolete
Our success will depend, in part, on our ability to license or acquire leading technologies useful in our business; enhance our existing services; develop new services or features and technology that address the increasingly sophisticated and varied needs of our current and prospective users; and respond to technological advances and emerging industry and regulatory standards and practices in a cost-effective and timely manner
Future advances in technology may not be beneficial to, or compatible with, our business
Furthermore, we may not be successful in using new technologies effectively or adapting our technology and systems to user requirements or emerging industry standards on a timely basis
Our ability to remain technologically competitive may require substantial expenditures and lead time
If we are unable to adapt in a timely manner to changing market conditions or user requirements, our business, financial condition and results of operations could be seriously harmed
Our operating results could be impaired if we or the Internet become subject to additional government regulation and legal uncertainties
Due to the increasing popularity and use of the Internet, it is possible that a number of laws and regulations may be adopted with respect to the Internet, relating to user privacy, pricing, content, copyrights, distribution, characteristics and quality of products and services, and export controls
The adoption of any additional laws or regulations may hinder the expansion of the Internet
A decline in the growth of the Internet could decrease demand for our products and services and increase our cost of doing business
Moreover, the applicability of existing laws to the Internet is uncertain with regard to many issues, including property ownership, export of specialized technology, sales tax, libel and personal privacy
Our business, financial condition and results of operations could be seriously harmed by any new legislation or regulation
The application of laws and regulations from jurisdictions whose laws do not currently apply to our business, or the application of existing laws and regulations to the Internet and other online services could also harm our business
We have employees and offer our services in multiple states, and we may in the future expand internationally
These jurisdictions may claim that we are required to qualify to do business as a foreign corporation in each state or foreign country
Our failure to qualify as a foreign corporation in a jurisdiction where we are required to do so could subject us to taxes and penalties
Other states and foreign countries may also attempt to regulate our services or prosecute us for violations of their laws
Further, we might unintentionally violate the laws of foreign jurisdictions and those laws may be modified and new laws may be enacted in the future
Risks Related to Our Stock Changes in stock option accounting rules will have an adverse affect on our operating results
We use options to acquire our common stock to attract, incentivize and retain our employees in a competitive marketplace
^ Statement of Financial Accounting Standards (SFAS) Nodtta 123, “Accounting for Stock-Based Compensation,” allowed companies the choice of either using a fair value method of accounting for options that would result in expense recognition for all options granted, or using an intrinsic value method, as prescribed by 13 _________________________________________________________________ Accounting Principles Board Opinion (“APB”) Nodtta 25, “Accounting for Stock Issued to Employees”, with a pro forma disclosure of the impact on net income (loss) of using the fair value option expense recognition method
Prior to our adoption of SFAS Nodtta 123 (revised 2004), “Share Based Payment,” or Statement 123(R), on January 1, 2006, we had elected to apply APB Nodtta25 and accordingly we generally did not recognize any expense with respect to employee options to acquire our common stock in periods ended on or prior to December 31, 2005 as long as such options were granted at exercise prices equal to the fair value of our common stock on the date of grant
In December 2004, the Financial Accounting Standards Board (“FASB”) issued Statement 123(R)
Statement 123(R) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements
This cost will be measured based on the fair value of the equity instruments issued
We adopted Statement 123(R) on January 1, 2006, which is the first day of our 2006 fiscal year
We expect the adoption of Statement 123(R) to have an adverse effect on our operating results, as we continue to use options to attract, incentivize and retain our employees
The tax value of our net operating losses could be impaired if we trigger a change of control pursuant to Section 382 of the Internal Revenue Code
Under the complicated rules of IRC Section 382, a change in ownership can occur whenever there is a shift in ownership by more than 50prca by one or more five-percent shareholders within a three-year period
If a change of ownership is triggered, our NOLs may be impaired, which could harm stockholder value
Our charter documents could deter a takeover effort, which could inhibit your ability to receive an acquisition premium for your shares
The provisions of our certificate of incorporation, bylaws and Delaware law could make it difficult for a third party to acquire us, even if it would be beneficial to our stockholders
In addition, we are subject to the provisions of Section 203 of the Delaware General Corporation Law, which could prohibit or delay a merger or other takeover of our Company, and discourage attempts to acquire us
The US Postal Service may object to a change of control of our common stock
The US Postal Service may raise national security or similar concerns to prevent foreign persons from acquiring significant ownership of our common stock or of Stamps
The US Postal Service also has regulations regarding the change of control of approved PC Postage providers
^ These concerns may prohibit or delay a merger or other takeover of our Company
Our competitors may also seek to have the US Postal Service block the acquisition by a foreign person of our common stock or our Company in order to prevent the combined company from becoming a more effective competitor in the market for PC Postage
The price at which our common stock has traded since our initial public offering in June 1999 has fluctuated significantly
The price may continue to be volatile due to a number of factors, including the following, some of which are beyond our control: · variations in our operating results, · variations between our actual operating results and the expectations of securities analysts, · investors and the financial community, · 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
14 _________________________________________________________________ Shares of our common stock held by existing stockholders may be sold into the public market, which could cause the price of our common stock to decline
If our stockholders sell into the public market substantial amounts of our common stock purchased in private financings prior to our initial public offering, or purchased upon the exercise of stock options or warrants, or if there is a perception that these sales could occur, the market price of our common stock could decline
All of these shares are available for immediate sale, subject to the volume and other restrictions under Rule 144 of the Securities Act of 1933