Preferred stock (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Authorization to Issue Preferred Stock

Aquinox USA was authorized to issue the following preferred stock as of December 31, 2014 and December 31, 2013 with $0.000001 par value as follows:


TYPE	DECEMBER 31, 2014 NUMBER		DECEMBER 31, 2013 NUMBER
Preferred stock – new		5,000,000		None
Series A preferred stock		None		27,914,951
Series B preferred stock		None		45,454,535
Series C preferred stock		None		45,793,738

AQXP Canada is authorized to issue the following preferred stock as of December 31, 2014 and December 31, 2013 with no par values as follows:


TYPE	DECEMBER 31, 2014 NUMBER		DECEMBER 31, 2013 NUMBER
Series A exchangeable preferred stock		Unlimited		Unlimited
Series B exchangeable preferred stock		Unlimited		Unlimited
Series C exchangeable preferred stock		Unlimited		Unlimited
Non-voting preferred stock		Unlimited		Unlimited

Schedule of Redeemable Convertible Stock at Fair Value upon Issuance

The table below discloses the accounting values assigned to the Series A, Series B and Series C preferred stock for the years ended December 31, 2014, 2013 and 2012. The Company recorded the Series A, Series B and Series C redeemable convertible stock at fair value upon issuance, with their carrying value increased by periodic accretion to their redemption value.


	SERIES A PREFERRED STOCK
	AQXP CANADA EXCHANGEABLE PREFERRED SHARES						AQUINOX USA PREFERRED STOCK
	NUMBER			AMOUNT			NUMBER			AMOUNT
BALANCE – December 31, 2011		791,016		$	11,365,295			662,875		$	9,503,860
Accretion for liquidation preference on preferred stock		—			915,252			—			769,236
Accretion for share issuance costs on preferred stock		—			39,751			—			34,936

BALANCE – December 31, 2012		791,016			12,320,298			662,875			10,308,032
Accretion for liquidation preference on preferred stock		—			988,473			—			830,772
Accretion for share issuance costs on preferred stock		—			20,868			—			18,334

BALANCE – December 31, 2013		791,016			13,329,639			662,875			11,157,138
Accretion for liquidation preference on preferred stock		—			190,112			—			159,782
Accretion for share issuance costs on preferred stock		—			75,007			—			49,783
Conversion of preferred stock into Aquinox USA common stock		(791,016	)		(13,594,758	)		(662,875	)		(11,366,703	)

BALANCE – December 31, 2014		—		$	—			—		$	—


	SERIES B PREFERRED STOCK
	AQXP CANADA EXCHANGEABLE PREFERRED SHARES						AQUINOX USA PREFERRED STOCK
	NUMBER			AMOUNT			NUMBER			AMOUNT
BALANCE – December 31, 2011		793,617		$	9,076,826			1,573,797		$	17,954,965
Accretion for liquidation preference on preferred stock		—			732,180			—			1,443,472
Accretion for share issuance costs on preferred stock		—			32,545			—			61,470
Amortization of warrant discount		—			21,883			—			23,567

BALANCE – December 31, 2012		793,617			9,863,434			1,573,797			19,483,474
Accretion for liquidation preference on preferred stock		—			781,300			—			1,550,916
Accretion for share issuance costs on preferred stock		—			17,534			—			33,255
Amortization of warrant discount		—			21,825			—			23,505

BALANCE – December 31, 2013		793,617			10,684,093			1,573,797			21,091,150
Accretion for liquidation preference on preferred stock		—			153,664			—			298,285
Accretion for share issuance costs on preferred stock		—			44,213			—			98,941
Amortization of warrant discount		—			27,144			—			85,030
Conversion of preferred stock into Aquinox USA common stock		(793,617	)		(10,909,114	)		(1,573,797	)		(21,573,406	)

BALANCE – December 31, 2014		—		$	—			—		$	—


	SERIES C PREFERRED STOCK
	AQXP CANADA EXCHANGEABLE PREFERRED SHARES						AQUINOX USA PREFERRED STOCK
	NUMBER			AMOUNT			NUMBER			AMOUNT
BALANCE – December 31, 2012		—		$	—			—		$	—
Issuance of preferred stock, net of issuance costs of $49,758 for AQXP Canada and $174,153 for Aquinox USA		378,786			3,950,228			1,325,753			13,825,822
Warrant discount of $68,920 for Aquinox USA (Note 10)		—			—			—			(68,920	)
Redemption discount of $466,673 for AQXP Canada and $1,633,357 for Aquinox USA		—			(466,673	)		—			(1,633,357	)
Accretion for liquidation preference on preferred stock		—			266,665			—			933,333
Accretion for share issuance costs on preferred stock		—			7,352			—			25,731
Amortization of warrant discount to date warrants exercised (Note 10)		—			—			—			10,838
Amortization of redemption option discount		—			73,389			—			256,863
Issuance of preferred stock on exercise of warrants (Note 10)		—			—			17,671			415,431

BALANCE – December 31, 2013		378,786			3,830,961			1,343,424			13,765,741
Accretion for liquidation preference on preferred stock		—			60,785			—			273,534
Accretion for share issuance costs on preferred stock		—			41,896			—			148,932
Amortization of redemption option discount		—			393,283			—			1,378,776
Conversion of preferred stock into Aquinox USA common stock		(378,786	)		(4,326,925	)		(1,343,424	)		(15,566,983	)

BALANCE – December 31, 2014		—		$	—			—		$	—

- Definition

Tabular disclosure of preferred units of master limited partnerships that have priority over limited partner units in areas including liquidation, redemption, conversion, tax status of distribution or sharing in distributions. This schedule ordinarily includes a description of the preferred units that details various rights including redemption, conversion, liquidation, and sharing in distributions; capital contributed by preferred partners; number of preferred units authorized to be issued, issued, and outstanding; aggregate cumulative cash distributions made to the preferred partners; aggregate cumulative net income earned by the preferred partners; capital account balance of the preferred partners.

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- Definition

Tabular disclosure of temporary equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. If convertible, the issuer does not control the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the conversion option if the holder exercises the option to convert the stock to another class of equity. If the security is a warrant or a rights issue, the warrant or rights issue is considered to be temporary equity if the issuer cannot demonstrate that it would be able to deliver upon the exercise of the option by the holder in all cases. Includes stock with put option held by ESOP and stock redeemable by holder only in the event of a change in control of the issuer.

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