Capital Structures-Common Stock

3 Months Ended

Mar. 31, 2013

Capital Structures-Common Stock

Capital Structures-Common Stock

6. Capital Structures—Common Stock

As of December 31, 2012 and March 31, 2013, the Company was authorized to issue 22,000,000 shares at a par value of $0.001 per share.

As of December 31, 2012 and March 31, 2013, the Company issued an aggregate of 3,010,101 shares of restricted common stock to its founders at a par value of $0.001 per share, of which 2,320,039 and 2,508,134 shares of common stock were vested and outstanding as of December 31, 2012 and March 31, 2013, respectively, and 690,062 and 501,967 shares remain unvested as of December 31, 2012 and March 31, 2013, respectively. The unvested shares of common stock will continue to vest following the IPO in connection with the founders’ continued service to the Company pursuant to the founders’ stock restriction agreements.

The voting, dividend, and liquidation rights of the holders of the common stock, as of December 31, 2012 and March 31, 2013, are subject to and qualified by the rights, powers, and preferences of the holders of the Preferred Stock. Each holder of common stock is entitled to vote on all matters and is entitled to one vote for each share held.

On March 29, 2013, the Company’s board of directors approved a 1-for-1.3953 reverse stock split of the Company’s common stock, which the Company effected on April 1, 2013. All share and per share amounts of common stock in the accompanying financial statements have been restated for all periods to give retroactive effect to the stock split. The shares of common stock retained a par value of $0.001 per share. Accordingly, the stockholders’ deficit reflects the reverse stock split by reclassifying from “common stock” to “Additional paid-in capital” in an amount equal to the par value of the decreased shares resulting from the reverse stock split.