8. Warrants to Purchase Preferred Stock and Common Stock

In connection with the Company’s entry into, and subsequent amendments of, its credit facility in 2010, 2008 and 2007, warrants to purchase preferred stock were issued to SVB. In addition, with the acquisition of ScanScout in 2010, the Company exchanged ScanScout’s pre-acquisition preferred stock warrants into warrants for the new series of preferred stock that was issued as part of the acquisition.

The warrants are exercisable at any time prior to expiration. Freestanding warrants and other similar instruments on shares that are redeemable (either put-able or mandatorily redeemable) are accounted for as liabilities, regardless of the timing of the redemption feature or price, even though the underlying shares may be classified as equity.

The following table summarizes the Company’s outstanding warrants to purchase preferred stock as of December 31, 2012:

						Fair Value
						as of
	Grant	Expiration	Exercise		Warrants	December 31,
	Date	Date	Price		Outstanding	2012

Series A	June 7, 2007	June 7, 2017	$	1.27	35,520	$	299
Series B-1	December 8, 2008	December 7, 2018	$	4.86	33,930	246
Series C	February 8, 2010	February 8, 2020	$	3.79	31,659	245
Series 1	December 8, 2010	June 30, 2017	$	2.46	31,130	256
Series 3	December 8, 2010	February 6, 2015	$	5.75	8,694	57
Totals					140,933	$	1,103

Mark-to-market income related to the fair value measurement of the warrants were $136 and $5 for the three months ended September 30, 2013 and 2012, respectively, and $313 and $19 for the nine months ended September 30, 2013 and 2012, respectively.

On July 2, 2013, in connection with the closing of the Company’s IPO, these warrants to purchase preferred stock were converted into warrants to purchase 142,534 shares of common stock (refer to note 2), which includes an anti-dilution adjustment to the conversion ratio of the Series B-1 warrants to purchase preferred stock. This conversion resulted in the warrants being reclassified to additional paid-in capital (refer to note 2).

On July 25, 2013, SVB exercised, in full, the following warrants to acquire common stock pursuant to a cashless net exercise: (i) warrants to acquire 17,607 shares of common stock, net of 14,052 shares of common stock tendered to the Company, at an exercise price of $3.79 per share, with an expiration date of February 8, 2020, (ii) warrants to acquire 16,210 shares of common stock, net of 19,321 shares of common stock tendered to the Company, at an exercise price of $4.64 per share, with an expiration date of December 7, 2018 and (iii) warrants to acquire 30,250 shares of common stock, net of 5,270 shares of common stock tendered to the Company, at an exercise price of $1.27 per share, with an expiration date of June 7, 2017. The number of shares tendered to the Company to satisfy the exercise price for the warrants was based on the closing price of the Company’s common stock on July 24, 2013. In aggregate, the Company issued 64,067 shares of common stock to SVB in connection with these exercises.

The following table summarizes the Company’s outstanding warrants to purchase common stock as of September 30, 2013:

Grant	Expiration	Exercise		Warrants
Date	Date	Price		Outstanding

December 8, 2010	June 30, 2017	$	2.46	31,130
December 8, 2010	February 6, 2015	$	5.75	8,694
				39,824