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expenditures, and realize additional income relating to
technology-related projects.
During its 1998-2002 fiscal years, TPC’s actual expenditures
associated with development and marketing of technology-related
projects totaled approximately $234 million.4
Set forth below are TPC’s technology-related expenditures
for its 1995-2002 fiscal years:
Fiscal TPC TPN
Year Web Site Register Thomas.Net PNN Plant Spec TGR Misc Total
1995 $ -- $ 2,901,153 $ -- $ -- $ -- $ -- $ 1,310,520 $ 4,211,673
1996 3,450 7,283,842 462,942 N/A -- 1,131,845 2,336,691 11,218,770
1997 3,692,116 8,133,557 1,670,582 1,639,314 20,818 3,740,603 2,146,855 21,043,845
1998 6,220,263 6,583,382 3,681,100 3,567,351 7,867,906 4,092,326 2,420,544 34,432,872
1999 3,348,521 5,800,000 5,908,513 3,619,148 7,445,476 5,832,464 6,120,977 38,075,099
2000 6,534,901 16,359,397 6,376,417 2,278,640 10,459,145 9,383,771 16,772,912 68,165,183
2001 8,519,175 3,700,000 5,797,868 2,278,640 9,955,829 9,383,771 16,352,359 55,987,642
2002 7,869,933 -- 4,173,741 930,655 4,547,589 9,423,411 8,101,439 35,046,768
TOTAL $36,188,359 $50,761,331 $28,071,163 $14,313,748 $40,296,763 $42,988,191 $55,562,297 $268,181,852
For its 1993-2000 fiscal years, TPC’s reported financial
statements reflect steady, consistent, and increasing revenue and
show that TPC was profitable through the end of its 1999 fiscal
year. As reported, for each of 1993-2000, TPC realized record
4 Apparently, for Federal income tax purposes and in the
valuations made by the estate’s experts herein, TPC treated all
of its technology-related expenditures as current ordinary and
necessary business expenses, rather than as capital expenditures.
Respondent herein complains mildly about such current expense
treatment but stops short of asserting that the technology-
related expenditures should have been capitalized and stops short
of asking that TPC’s financial statements and financial
projections be redone to treat such expenditures as capital in
nature.
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