PRSS 2017 Annual Report

The accompanying notes are an integral part of these consolidated financial statements. 49 CAFEPRESS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended December 31, 2017 2016 Cash Flows from Operating Activities: Net loss $ (10,257) $ (26,470) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 4,709 4,256 (Gain) loss on disposal of fixed assets (31) 2 Stock-based compensation 1,769 1,607 Impairment charges — 20,899 Deferred income taxes 92 (338) Changes in operating assets and liabilities: Accounts receivable (138) (608) Inventory (9) 731 Prepaid expenses, deferred costs and other current assets 211 (76) Other assets (9) 19 Accounts payable 548 (2,105) Accrued royalties payable (751) (669) Accrued and other liabilities (2,832) 1,022 Deferred revenue 272 (116) Net cash used in operating activities (6,426) (1,846) Cash Flows from Investing Activities Purchase of short-term investments (7,995) (23,808) Proceeds from maturities of short-term investments 25,792 17,610 Purchase of property and equipment (2,138) (4,089) Capitalization of software and website development costs (2,430) (2,415) Proceeds from disposal of fixed assets 46 29 Net cash provided by (used in) investing activities 13,275 (12,673) Cash Flows from Financing Activities: Principal payments on capital lease obligations (347) (565) Proceeds from exercise of common stock options 13 5 Repurchase of common stock (58) (1,021) Net cash used in financing activities (392) (1,581) Net increase (decrease) in cash, cash equivalents and restricted cash 6,457 (16,100) Cash, cash equivalents and restricted cash—beginning of period 19,980 36,080 Cash, cash equivalents and restricted cash—end of period $ 26,437 $ 19,980 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 32 $ 44 Income taxes paid (refunded) during the period — (13) Non-cash Investing and Financing Activities: Accrued purchases of property and equipment $ — $ 103