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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Years Ended December 31, 2001, 2000 and 1999
co branding partnership with Click2Learn. Vulcan Ventures was a majority shareholder of Click2Learn at the time of the Go2Net investment.
Go2Net recognized $2.7 million and $577,000 of revenue associated with the warrants in 2000 and 1999, respectively.
During the year ended December 31, 1999, the Company sold advertising resulting in revenue of $580,912 to other entities in which the
Company's chief executive officer had equity interests.
Note 13: Employee Benefit Plan
The Company has a 401(k) savings plan covering its U.S. based employees. Eligible employees may contribute through payroll
deductions. The Company matches employees' contributions at the discretion of the Company's Board of Directors. To date, the Company has
not matched employee contributions to the 401(k) savings plan.
Note 14: Subsequent Events
On February 8, 2002 the Company acquired substantially all of the technology and intellectual property of eCash Technologies, Inc., a
developer of electronic debit and stored value technologies, for purchase consideration of $2.7 million and 1,064,815 shares of the Company's
On January 15, 2002, the Company offered a limited non compulsory exchange of stock options to its employees. Under the exchange
offer, eligible employees had the opportunity to exchange eligible stock options for the promise to grant new options in the future under the
1996 Plan. Options eligible to be tendered were all options to purchase InfoSpace common stock with an exercise price of $10.00 or more per
share. The exchange offer period expired on February 15, 2002, and the Company accepted for exchange options covering 12,734,035 shares of
common stock. The Company will grant to each participating employee a new option to purchase one share of InfoSpace common stock for
every ten shares of common stock underlying the exchanged options. In addition, each participating employee may also receive an additional
option, granted at the discretion of the Board of Directors, to purchase a number of shares determined in accordance with our compensation
policies and practices. The exercise price of the new options will be equal to the fair market value of InfoSpace shares on the date the new
options are granted, which is expected to be on August 20, 2002. The new options will be 25% vested on the date of grant and the remaining
75% will vest in equal monthly installments over the three year period following the grant date. The Company expects to grant new options
covering approximately 3.1 million shares of common stock.