6. Subsequent Events

Initial Public Offering and Related Transactions

On October 4, 2013, the Company completed its IPO whereby it sold 7,666,667 shares of common stock at a public offering price of $6.00 per share. Estimated net proceeds from the IPO were determined as follows (in thousands):

Gross proceeds (including over-allotment)	$	46,000
Underwriting discounts and commissions	(2,695		)
Estimated total offering costs (including costs paid as of September 30, 2013)	(2,900		)
Offering costs paid as of September 30, 2013	1,381
Estimated net proceeds to be received subsequent to September 30, 2013	41,786
Partial repayment of August 2013 Notes subsequent to September 30, 2013	(1,741		)
Estimated net cash impact of IPO and related transactions	$	40,045

In addition, each of the following occurred in connection with the completion of our IPO on October 4, 2013:

· the conversion of all outstanding shares of convertible preferred stock into 7,229,590 shares of the Company’s common stock;

· the conversion of $22.1 million of outstanding principal and accrued interest on convertible notes into 3,679,401 shares of common stock, the write-off of $0.3 million of unamortized debt discount and the related cash repayment of $1.7 million of outstanding principal and accrued interest on convertible notes and accrued interest outstanding as of September 30, 2013;

· 480,763 shares of the Company’s common stock became issuable pursuant to the redemption of an aggregate of 900,000 exchangeable shares of Fate Canada and the resultant reclassification of the exchangeable share liability to additional paid-in capital;

· the conversion of warrants to purchase 230,000 shares of convertible preferred stock into warrants to purchase 36,074 shares of the Company’s common stock and the resultant reclassification of the warrant liability to additional paid-in capital; and

· an amended and restated certificate of incorporation was filed on October 3, 2013, authorizing 150,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock.

The following table summarizes certain actual balance sheet data and pro forma balance sheet data to reflect the activities related to the Company’s IPO noted above, as of September 30, 2013 (in thousands):

	September 30, 2013			Pro Forma September 30, 2013

Cash and cash equivalents	$	19,082		$	59,127
Other assets	2,743			—
Accounts payable and accrued expenses	3,725			2,344
Long-term accrued expenses	137			79
Convertible notes, net of discount	23,481			—
Preferred stock warrant liability	163			—
Exchangeable share liability	2,885			—
Convertible preferred stock	56,526			—
Common stock	1			20
Additional paid-in capital	14,367			136,398
Deficit accumulated during the development stage	(80,770		)	(81,024		)
Total stockholders’ (deficit) equity	(66,402		)	55,394

In connection with the closing of its IPO on October 4, 2013, the Company recorded an additional aggregate non-cash charge of $0.5 million in other income (expense) related to the final fair value adjustment of the exchangeable share liability and the preferred stock warrant liability. This final fair value adjustment is excluded from the table above.