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Redeemable Convertible Preferred Stock
12 Months Ended
Feb. 29, 2016
Equity [Abstract]  
Redeemable Convertible Preferred Stock
Redeemable Convertible Preferred Stock
Prior to our initial public offering in November 2013, we had Series A and B redeemable convertible preferred stock (collectively "Convertible Preferred Stock"), all of which converted to 17,626,227 shares of common stock on a one-to-one basis in connection with our initial public offering (the "IPO"). Significant terms were as follows:
Conversion—Each share of Convertible Preferred Stock was convertible at the option of the holder into common stock using a conversion rate of $3.98 and $16.84 per share, respectively, and would automatically convert into common stock in the event of an underwritten public offering of our common stock or upon the request of at least two thirds of the Preferred Stock then outstanding.
Voting—Convertible Preferred Stock had voting rights, on an as-if-converted basis, identical to common stock and should vote together with common stock, and not as separate classes.
Dividends—Any dividends declared or paid in any fiscal year would be made among the holders of Convertible Preferred Stock and common stock then outstanding in proportion to the greatest number of shares of common stock that would be held by each such holder if all Convertible Preferred Stock were converted at the then-effective conversion rate.
Liquidation—In the event of liquidation, the Series B holders were entitled to receive in preference to any distribution to Series A or common stock holders, a liquidation preference equal to the greater of (i) $21.04 and (ii) the amount to which such holder of Series B would be entitled to receive upon a liquidation if such holders of Series B were converted into common stock, plus any dividends declared but unpaid on such shares. The holders of Series A were entitled to receive in preference to any distribution to holders of common stock, a liquidation preference equal to the greater of (i) $5.97 and (ii) the amount to which such holder of Series A would be entitled to receive upon a liquidation if such holders of Series A were converted into common stock, plus any dividends declared but unpaid on such shares. Any surplus assets or funds would then be distributed ratably between the holders of common stock.
If assets and funds were insufficient to meet the liquidation preference of the Convertible Preferred Stock such assets and funds would first be distributed ratably between the holders of Series B in proportion to the full amounts they would otherwise be entitled to receive and then to holders of Series A in proportion to the full amounts they would otherwise be entitled to receive.
Redemption—In October 2017, all outstanding shares of Convertible Preferred Stock would be eligible to be redeemed for cash in full upon a written notice by at least two-thirds of the holders of the outstanding Convertible Preferred Stock. In the event of redemption, each holder of the Convertible Preferred Stock would be entitled to receive the original issue price per share ($3.98 for each share of Series A and $16.84 for each share of Series B), plus all unpaid dividends on such shares that were declared.
Costs related to the issuance of Convertible Preferred Stock have been accreted to additional paid-in capital.