(j) Investments in affiliates  (k) Income taxes  (l) Risks and uncertainties  (m) Revenue recognition  (n) Research and development costs  (o) Loss per share  (p) Stock-based compensation  (q) Reclassifications  ( 4 ) A c q u i s i t i o n s On March 26, 1999 the Company signed an agreement with Service Bank GmbH & Co. KG (“Service Bank”) to acquire 252 installed AT M s in Germany and 36 ATMs in inventory. The purchase price for this established ATM network was 12.2 million Deutsche Marks ($6.7 million). Pursuant to the agreement, the Company receives monthly fees based on revenues realized from the ATMs less certain expenses and 3 1 C e rtain amounts have been reclassified in the prior year consolidated financial statements to conform to the 2000 consolidated financial statement presentation.  The Company accounts for stock-based compensation using the intrinsic value method prescribed in Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” and related Interpretations. Accord i n g l y, compensation cost for stock options is measured as the excess, if any, of the fair market value of the Company’s shares at the date of the grant over the exercise price. Such compensation cost is charged to expense on a straight-line basis over the vesting period of the respective options. If vesting is accelerated as a result of certain milestones, the unrecognized compensation would be re c o rded as expense on the date such milestones have or have been deemed to have been achieved. The Company has adopted the disclosure-only provisions of SFAS No. 123  (see Note 18).  Loss per share has been calculated by dividing the net loss attributable to common shareholders by the weighted-average number of s h a res outstanding during the year. The effect of potential common shares (stock options and warrants outstanding) is anti-dilutive. A c c o rd i n g l y, dilutive loss per share does not assume the exercise of the stock options and warrants outstanding.  Capitalized software costs are amortized on a pro d u c t - b y - p roduct basis equal to the greater of the amount computed using (a) the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or (b) the straight-line method over the remaining estimated economic life of the product, generally three years, including the period being re p o rt e d on. Amortization commences in the period when the product is available for general release to customers.  Technological feasibility of computer software products is established when the Company has completed all planning, designing, coding, and testing activities that are necessary to establish that the product can be produced to meet its design specifications including functions, f e a t u res, and technical perf o rmance re q u i rements.  The Company applies SFAS 2 and 86 in re c o rding re s e a rch and development costs. Research costs aimed at the discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service or a new process or technique or in bringing about significant improvement to an existing product or process are expensed as incurred (refer to Note 24). Development costs aimed at the translation of re s e a rch findings or other knowledge into a plan or design for a new product or process or for a significant i m p rovement to an existing product or process whether intended for sale or use are capitalized on a pro d u c t - b y - p roduct basis when technological feasibility is established.  E u ronet recognizes revenue at the point at which the service is perf o rmed. Revenues from software licensing agreement contracts are recognized on a percentage of completion basis whereby a pro-rata portion of revenue and related costs are recognized as the work p ro g resses. Revenues from software licensing agreement contracts re p resenting newly released products deemed to have a higher than n o rmal risk of failure during installation are recognized on a completed contract basis whereby revenues and related costs are deferre d until the contract is complete.  The Company has made a number of estimates and assumptions related to the re p o rting of assets and liabilities and the disclosure of contingent assets and liabilities to pre p a re these consolidated financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates.  Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to diff e rences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry f o rw a rds. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary diff e rences are expected to be re c o v e red or settled. The e ffect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  Investment in the common stock of EFT Network Services, LLC (“Dash”), a 33 1/3% owned affiliate until wholly acquired on August 13, 1999, was accounted for by the equity method until the date of acquisition. Under this method, the Company’s share of net income or loss was reflected in the Company’s investment account, and dividends received are treated as a reduction of the investment account. The fair value of the investment in excess of the underlying equity in net assets is amortized over 10 years. The acquisition on August 13, 1999 was accounted for under the purchase method of accounting (see note 4). 