EQUITY

6 Months Ended

Jun. 30, 2011

EQUITY

6. EQUITY

Issuance of Equity Securities

On December 20, 2010 the Company completed its IPO of 9,000,000 shares of common stock at an offering price of $9.00 per share, of which 407,692 shares were sold by the Company and 8,592,308 shares were sold by selling stockholders, resulting in net proceeds to the Company of $4.0 million, after deducting underwriting discounts (which included a $0.6 million reimbursement by the underwriters for the Company’s out-of-pocket expenses incurred during the offering). Upon the closing of the IPO, all of the Company’s previously outstanding shares of convertible preferred stock were automatically converted into 27,757,770 shares of common stock, in accordance with the Company’s Second Amended and Restated Certificate of Incorporation. As a result of the conversion of the convertible preferred stock, the associated embedded derivative liability previously recorded by the Company was settled and recorded to additional paid-in-capital.

Common Stock

At June 30, 2011 and December 31, 2010, the Company had authorized 60,000,000 shares of common stock, of which 34,700,675 were issued and 34,679,885 were outstanding as of June 30, 2011. As of December 31, 2010, 31,174,651 shares were issued and outstanding.

Warrants

During the six months ended June 30, 2011, all outstanding warrants were exercised, which, after net settlement, resulted in the issuance of 3,261,575 shares of common stock. At June 30, 2011 and December 31, 2010, the Company had outstanding zero and 3,297,733 warrants to purchase shares of its common stock.

Share Repurchase

On May 13, 2011, the Company’s Board of Directors approved a share repurchase plan which authorized the expenditure of up to $10.0 million for the purchase of the Company’s common stock over a one-year period. The amount and timing of specific repurchases depends on market conditions, the trading price of the Company’s common stock and other factors. For the six months ended June 30, 2011, the Company repurchased 20,790 shares for approximately $0.1 million of the initial $10.0 million authorized and, therefore, $9.9 million remains available under the repurchase program.