Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions

5. RELATED PARTY TRANSACTIONS

In November 2008, the Company purchased 1,345,444 shares of Peregrine Series D-1 Preferred shares for a total of $2.0 million, which represented less than 1% of Peregrine’s shares outstanding. The terms and stock price of the purchase were the same as for the other investors who participated. Peregrine is a customer of the Company. On August 8, 2012, Peregrine completed its initial public offering, which resulted in a conversion of the preferred shares to common stock at a ratio of 7.34:1, or 183,302 shares of common stock. For the three and nine ended September 30, 2014 the Company recorded an unrealized gain on investments of $1.0 million and $909,000, respectively. For the three and nine months ended September 30, 2014, revenue from Peregrine was $455,000 and $600,000 respectively. As of September 30, 2014, accounts receivable from Peregrine were $455,000 and there was no accounts receivable from Peregrine at December 31, 2013. The pricing terms and conditions of the sales to Peregrine are similar to those available to the Company’s other non-related customers. As of October 7, 2014, the Company sold all of its shares of Peregrine common stock.