6. Capital Stock

Preference shares

After completion of the IPO, a total of 20,000,000 preference shares, with a $0.00045 par value per share, were authorized. There were no shares issued and outstanding as of April 30, 2013 and January 31, 2013, respectively.

Warrants

In connection with a financing agreement in 2004, the Company issued warrants to purchase 36,292 Series B redeemable convertible preference shares at an exercise price of $3.582 per share. The warrants are fully vested and are exercisable through December 2014.

In June 2005, the FASB issued authoritative guidance on the classification of freestanding warrants and other similar instruments on shares that are redeemable (either puttable or mandatorily redeemable). The guidance requires liability classification for warrants issued that are exercisable into convertible preferred stock. Liability classification requires the warrants to be remeasured to their fair value for each reporting period.

Prior to the closing of IPO, the Company utilized the Black-Scholes option pricing model to determine the fair value of the warrants to purchase redeemable convertible preference shares, including the consideration of underlying ordinary share price, a risk-free interest rate, the expected term and expected volatilities. The warrants were revalued up to the closing of IPO and any change in fair value has been recorded in other expense.

Upon the completion of the IPO, the warrants to purchase redeemable convertible preference shares converted to warrants to purchase ordinary shares. During the three months ended April 30, 2013, a total of 25,125 warrants were exercised. A total of 11,167 and 36,292 warrants were outstanding at April 30, 2013 and January 31, 2013, respectively.

Ordinary shares

At April 30, 2013 and January 31, 2013, a total of 200,000,000 ordinary shares were authorized. As of April 30, 2013 and January 31, 2013, the following ordinary shares were reserved for future issuance:


	As of April 30, 2013		As of January 31, 2013

Shares reserved for options and restricted stock units		6,836,469		5,818,126
Shares reserved for employee stock purchase plan		798,383		460,445
Shares reserved for warrants		11,167		36,292