Convertible Preferred Stock

6 Months Ended

Jun. 30, 2012

Convertible Preferred Stock [Abstract]

Convertible Preferred Stock

7. Convertible Preferred Stock

In May and June 2012, the Company issued 5,955,881 shares of Series E convertible preferred stock (Series E Preferred) at a price of $3.40 per share, for gross proceeds of $20.2 million. All shares of convertible preferred stock (Preferred Stock) are effectively redeemable in the event of a change in control at the applicable original purchase price per share. As all Preferred Stock is redeemable upon an event outside the control of the Company (i.e., a change in control), the related amounts have been presented outside of stockholders’ deficit. The carrying value of Preferred Stock will be adjusted to redemption value if it becomes probable that a redemption will occur. Company management does not believe that redemption is probable based on current business conditions.

The redemption amount of the outstanding Series A, Series B-1, Series B-2, Series C, Series D and Series E convertible preferred stock is equal to the applicable original purchase price of the stock, or $1.44, $1.44, $1.44, $2.88, $3.25 and $3.40 per share, respectively.

As of June 30, 2012, convertible preferred stock balances were as follows:

	Shares		Shares Issued				Liquidation
(in thousands, except share information)	Authorized		and Outstanding		Carrying Value		Amount
Series A		1,527,611		1,527,611	$	1,835	$	2,200
Series B-1		3,425,152		3,425,152		4,726		4,932
Series B-2		14,811,323		14,672,434		21,039		21,128
Series C		6,944,450		6,944,450		19,905		20,000
Series D		11,385,195		11,385,195		35,673		37,002
Series E		22,058,823		5,955,881		18,845		20,250
		60,152,554		43,910,723	$	102,023	$	105,512