Correction of Treatment for Liabilities

During the fourth quarter of 2012, the Company reviewed its accounting treatment for accruing liabilities for its Geek Points loyalty program at the end of each reporting period. Geek Points are earned by customers upon certain events and can be redeemed with future purchases prior to a three year expiration date. The Company performed an analysis on the costs incurred for redeeming the Geek Points using historical data and determined that the liabilities were understated as of December 31, 2009 and for each of the prior periods presented. Although the impact of the adjustments are immaterial, the Company has adjusted its financial statements for all prior period years presented. The accumulated impact of the prior period adjustments at December 31, 2009 increased accumulated deficit by $0.5 million. The impact of the adjustment to loss from continuing operations for the years ended December 31, 2011 and 2010 was $0.4 million and $0.3 million, respectively. Additional information regarding the adjustments is shown in the following tables (in thousands):



	Year Ended December 31, 2011						Year Ended December 31, 2010
	As Reported			Adjusted			As Reported			Adjusted

Consolidated statement of operations:
Cost of revenue ⁽¹⁾	$	83,277		$	83,602		$	62,630		$	63,036
Gross margin ⁽¹⁾	$	15,780		$	15,455		$	13,705		$	13,299

Loss from continuing operations ⁽²⁾	$	(3,122	)	$	(3,447	)	$	(3,853	)	$	(4,259	)
Net loss	$	(1,190	)	$	(1,515	)	$	(4,448	)	$	(4,854	)

⁽¹⁾ Cost of revenue and gross margin, as reported, was previously reported as e-Commerce segment information.

⁽²⁾ Loss from continuing operations, as reported, has been revised to exclude amounts related to the sale of the Company's Media business, which has been presented as discontinued operations.



	December 31, 2011
	As Reported		Adjusted
Consolidated balance sheets:
Deferred revenue	3,500		3,482
Accrued liabilities and other	3,409		4,359
Other long-term liabilities	71		343
Accumulated deficit	(755,872	)	(757,076	)