XML 30 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Related Party and Other Transactions
9 Months Ended
Oct. 31, 2017
Related Party Transactions [Abstract]  
Related Party and Other Transactions

(14) Related-Party and Other Transactions

In 2013, one executive and one non-executive employee exercised stock options early in exchange for full-recourse promissory notes in an amount of $2.2 million bearing annual interest of 1.62% to 1.64% payable to the Company. These notes are secured by the underlying shares purchased and such unvested shares can be repurchased by the Company upon employee termination at the original issuance price. In September 2017, the Company entered into an amendment to the full-recourse promissory note with the non-executive. Pursuant to the amendment, a portion of the promissory note and accrued interest will become due and payable in April 2018 and the remaining portion will become due and payable in March 2019, but will become due earlier if the non-executive terminates services. The Company is recording the notes receivable balance within equity with a corresponding entry to additional paid-in capital upon the vesting of these shares. In June 2017, the outstanding principal and interest balance of $1.0 million was repaid in full by the executive employee through the Company’s repurchase of 88,520 shares of the executive employee’s common stock. Employee notes receivable as of January 31, 2017 and October 31, 2017 was $1.5 million and $0.7 million, respectively.

In 2013, one executive employee exercised stock options early in exchange for a promissory note in an amount of $6.6 million bearing interest of 1.92% payable to the Company. This note is secured by the underlying shares purchased and such unvested shares can be repurchased by the Company upon employee termination at the original issuance price. Because the Company only has partial recourse under the promissory note, the Company deemed the exercise of the stock options to be nonsubstantive. As such, the note receivable is not reflected in these condensed consolidated financial statements and the related stock transaction will be recorded at the time the note receivable is settled in cash. In June 2017, the outstanding principal and interest balance of $6.9 million was repaid in full by the executive employee through the Company’s repurchase of 501,104 shares of the executive employee’s common stock.

In July 2015, certain executives of the Company participated in the Series F financing round, and acquired 11,353 shares of Series F Convertible Preferred Stock with an aggregate value of $0.5 million. In June 2017, the Company amended its certificate of incorporation to eliminate certain variable rate adjustments to the conversion ratios of the Series E, E-1 and F Convertible Preferred Stock and replaced them with certain fixed conversion rations. Pursuant to these fixed conversion rations, the executives who participated in the series F financing round were issued additional shares of common stock immediately prior the closing of the Company’s IPO.