Quarterly report pursuant to Section 13 or 15(d)

Convertible Preferred Stock Warrants and Common Stock Warrants

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Convertible Preferred Stock Warrants and Common Stock Warrants
6 Months Ended
Jun. 30, 2017
Warrants And Rights Note Disclosure [Abstract]  
Convertible Preferred Stock Warrants and Common Stock Warrants

Note 10. Convertible Preferred Stock Warrants and Common Stock Warrants

Immediately prior to the Company’s IPO, all outstanding Series B-1 convertible preferred stock warrants were remeasured to their fair value, using the Black-Scholes model. Refer to Note 3, Summary of Significant Accounting Policies, to the notes to the consolidated financial statement included in the Prospectus for a description of the valuation method. The final remeasurement of the convertible preferred stock warrant liability resulted in a $3.7 million loss which was recorded to other expense, net.

Upon the closing of the IPO, the entire balance of $5.7 million in convertible preferred stock warrant liability was reclassified to additional paid-in capital. All convertible preferred stock warrants were converted into common stock warrants.  In addition, the Company issued to the lead underwriter in the IPO a warrant to purchase up to 84,000 shares of its common stock.

In June 2017, the June 2012 warrant and a portion of the August 2012 warrant were converted into 15,136 shares and 39,771 shares of common stock, respectively, in a cashless exercise,

At June 30, 2017, the Company had the following common stock warrants issued and outstanding (in thousands, except share and per share data):

 

Warrant Class

 

Shares

 

 

Issuance

Date

 

Price

per Share

 

 

Expiration

Date

Common stock warrant

 

 

167,428

 

 

July 2012

 

$

5.8667

 

 

July 2019

Common stock warrant

 

 

60,575

 

 

August 2012

 

$

5.8667

 

 

August 2019

Common stock warrant

 

 

10,517

 

 

November 2012

 

$

5.8667

 

 

November 2022

Common stock warrant

 

 

156,851

 

 

February 2014

 

$

0.1700

 

 

February 2021

Common stock warrant

 

 

173,862

 

 

September 2015

 

$

5.8667

 

 

September 2025

Common stock warrant (1)

 

 

61,363

 

 

March 2017

 

$

5.8667

 

 

September 2025

Common stock warrant (2)

 

 

84,000

 

 

June 2017

 

$

13.2000

 

 

June 2020

 

 

 

714,596

 

 

 

 

 

 

 

 

 

 

 

 

(1)

This warrant was issued in connection with the amended 2015 Term Note. The number of shares underlying the warrant issued in March 2017 was originally 76,704 and, pursuant to its terms, was reduced to 61,363 shares upon the closing of the Company’s IPO. See Note 7, Financing Arrangements, for further details regarding this warrant.

 

(2)

This warrant was issued to the Company’s lead underwriter in connection with the IPO.