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Preferred Stock Warrant Liability
9 Months Ended
Sep. 30, 2011
Preferred Stock Warrant Liability [Abstract] 
Preferred Stock Warrant Liability

8. PREFERRED STOCK WARRANT LIABILITY

Total warrants issued and outstanding were as follows (in thousands, except share and per share amounts):

 

Underlying Stock

    Exercise
Price		      Outstanding
as of
December 31,
2010		      Fair Value as of
December 31,
2010		  

Series A Redeemable Preferred Stock

    $ 0.39         64,103       $ 506   

Series B Redeemable Preferred Stock

      1.01         321,909         2,455   
     

 

 

     

 

 

  
        386,012       $ 2,961   
     

 

 

     

 

 

  

The Series A redeemable preferred stock warrants were exercised in June 2011. The Series B redeemable preferred stock warrants converted to common stock upon the closing of the Company's initial public offering in June 2011.

Upon the closing of the Company's initial public offering on June 2, 2011, the Series A and Series B redeemable preferred stock warrants that were previously recorded as liabilities on the Company's consolidated balance sheet were automatically converted to common stock warrants or common stock. Upon this conversion, the related preferred stock warrant liability of $6.6 million was reclassified to additional paid-in capital and will no longer be adjusted to fair value.

The preferred stock warrants were marked to fair value from January 1, 2009 through May 27, 2011, and the change in fair value was recognized in the Company's condensed consolidated statements of operations as gain or loss from change in fair value of warrant liabilities. The fair value of the preferred stock warrants was estimated to be $0 and $3.0 million as of September 30, 2011 and December 31, 2010, respectively. The fair value of the preferred stock warrant liability did not change during the three months ended September 30, 2011 and 2010, respectively, and increased by $3.6 million and $0.6 million in the nine months ended September 30, 2011 and 2010, respectively. The Company recorded these changes in fair value as an adjustment to loss from the change in fair value of warrant liabilities in the condensed consolidated statements of operations.