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Subsequent Events
3 Months Ended
Mar. 31, 2012
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

Subsequent to the close of the Company’s first quarter ended March 31, 2012, on April 2, 2012, the Company completed its initial public offering (“IPO”) of 6,727,500 shares of common stock, at $16.00 per share, before underwriting discounts and commissions. The Company sold 5,000,000 shares and existing stockholders sold an aggregate of 1,727,500 shares, including 877,500 shares as a result of the underwriters’ exercise of their over-allotment option to purchase additional shares. The IPO generated net proceeds to the Company of approximately $74.4 million, after deducting underwriting discounts. Expenses incurred by the Company for the sale of common stock were approximately $3.8 million and will be recorded against the proceeds received from the sale of common stock. The Company did not receive any proceeds from the sale of shares by the selling stockholders.
The outstanding shares of convertible preferred stock converted into shares of the Company’s common stock concurrent with the consummation of the IPO on April 2, 2012. The outstanding warrants to purchase shares of convertible preferred stock converted into warrants to purchase shares of common stock. Following the IPO, there were no shares of the Company’s convertible preferred stock outstanding.
Concurrent with the consummation of the IPO, on April 3, 2012, the Company paid off in full the outstanding line of credit of $4.5 million and the loan balance of $3.3 million.
Included within options outstanding are 233,622 options with an exercise price of $1.74 that contain performance and market based conditions. These options vest upon either (i) the sale of the Company for an enterprise value of at least $400 million or (ii) the completion of an initial public offering and a market capitalization of a least $400 million for 10 consecutive business days at any time after the IPO. The fair value of these options will be measured upon the satisfaction of one of the conditions above, and fully expensed in the period in which the condition is satisfied. The Company has determined that the second condition was met in April 2012, and will expense the full value of approximately $0.2 million of these options in the second quarter of 2012.