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Subsequent Events
12 Months Ended
Jan. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

(15) Subsequent Events

In February 2018, the Company terminated its lease of certain office space located at 205 Ravendale Drive, Mountain View, California. The lease termination is part of an overall plan to seek to drive efficiencies in the Company’s business. The Company anticipates surrendering the premises and substantially completing the lease termination in the first quarter of fiscal 2019. The Company expects to incur total costs of approximately $3.7 million in connection with the lease termination, comprised of a write-off of net leasehold costs of approximately $2.5 million, contract termination costs of approximately $1.8 million, partly offset by the recovery of deferred rental expenses of $0.6 million. The Company anticipates that these costs will result in approximately $1.8 million of cash expenditures related to contract termination costs.

In February and March 2018, the Company issued an aggregate of $25.0 million of convertible promissory notes (Notes) under the Note Purchase Agreement. Under the Note Purchase Agreement, the Company agreed to sell Notes having a maximum aggregate principal amount of $25.0 million subject to the terms and conditions set forth in the Note Purchase Agreement. The Notes have an interest rate of 8% per annum and will mature 18 months from the date of issuance. If the Notes remain outstanding on or after December 1, 2019, at the Company’s election, pursuant to the approval of a majority of the members of the Company’s board of directors, the Notes will convert into shares of the Company’s common stock at the IPO price of $7.00 per share, provided that any Notes issued to entities affiliated with one of the Company’s existing stockholders that is a party to the Note Purchase Agreement will be converted at the average price of the Company’s common stock on the NASDAQ Stock Market over the 30-day period preceding the conversion. The Notes are subject to acceleration upon the occurrence of an event of default, which include nonpayment, breach of representations and warranties, and the occurrence of certain bankruptcy or insolvency events.

In March 2018, the Board approved a restructuring and reduction in force plan of approximately 20% of the Company’s global workforce.  The Company expects to substantially complete the restructuring in its first quarter of fiscal 2019, which ended on April 30, 2018. The Company estimates it will incur approximately $3.0 million to $4.0 million of cash expenditures in connection with the restructuring, substantially all of which relate to severance costs and contract termination costs. Total restructuring expenses are estimated at $2.5 million to $3.5 million, substantially all of which relate to severance costs. Total restructuring expense is expected to be lower than cash restructuring costs primarily due to the reversal of previously recognized non-cash stock-based compensation expense related to awards that will not vest as a result of the restructuring plan. The Company expects to recognize all of these pre-tax restructuring charges in the first quarter of fiscal 2019.

In March 2018, the Company entered into a Waiver and Tenth Amendment with SVB, pursuant to which the parties agreed to certain amendments and modifications to the Company’s line of credit under the Loan and Security Agreement between the Company and SVB dated as of May 14, 2013, as amended (Loan Agreement).  The Tenth Amendment provides for the interest rate on amounts outstanding under the Loan Agreement shall be equal to the prime rate plus 1.85% per annum through March 31, 2018, in exchange for the waiver by SVB with respect to certain prior events of default, in each case subject to the terms and conditions set forth in the Tenth Amendment.

In April 2018, the Company entered into an amended and restated loan agreement with SVB to, among other things, extend the maturity date of its credit facility. Under the amended agreement, the Company may borrow, through May 2, 2019, up to $12.5 million dependent upon its monthly accounts receivables balances, subject to the terms and conditions of the agreement.  The $5.0 million non-formula facility previously included in its SVB revolving line of credit terminated in May 2018. The Company’s revolving line of credit with SVB contains certain financial covenants, including a covenant that it achieve total revenues of at least $20.5 million, $23.4 million, $26.3 million and $29.4 million for the fiscal quarters ending April 30, 2018, July 31, 2018, October 31, 2018 and January 31, 2019, respectively, and a covenant that the it maintain a minimum level of cash and availability under the SVB line of credit of at least $15.0 million through July 31, 2018 and at least $10.0 million thereafter. The Company may also be required to pay a fee to SVB upon a change of control.

In April 2018, the Company also entered into an amendment with TriplePoint to extend the maturity date of its credit facility to August 2019.  Pursuant to the amended terms, of the $50.0 million outstanding under this facility, $15.0 million will bear interest at 10.5% per year and $35.0 million will bear interest at 12.75% per year. The $50.0 million principal amount will become due in August 2019; provided, however, that if the Company, on or before August 2019, prepays a minimum of $ 25.0 million of the total amount outstanding under this facility, the maturity date for the then remaining outstanding principal balance will be extended to February 2021, subject to the Company making equal monthly amortizing payments of principal and interest through the extended maturity date.  Certain end-of-term payments will become payable upon the maturity of this indebtedness and certain other fees will become payable in connection with this indebtedness upon the occurrence of a change of control of the company.

In March 2018, the Company announced that the Board had named Tom Barton as Chief Executive Officer and as a member of the Board, and his appointment became effective on April 2, 2018.  Ken Klein transitioned from his role as Chief Executive Officer and as a member of the Board in connection with Mr. Barton’s joining the Company.

In March 2018, the Company also announced that Ian Halifax resigned from his role as Chief Financial Officer, and his resignation became effective in April 2018.

In March 2018, the Company also announced that John Bolger and Harvey Jones had each resigned from the Board.

In March 2018, the Company granted RSUs under the 2017 Plan to certain eligible employees covering a total of 2,846,025 shares. The total grant date fair value for these RSUs is $12.6 million.

In March and April 2018, the Board adopted the Tintri, Inc. Inducement Plan (Inducement Plan) and, subject to the adjustment provisions of the Inducement Plan, reserved 1,700,000 shares of the Company’s common stock for issuance pursuant to equity awards granted under the Inducement Plan.

In March 2018, a partial principal and interest payment was made by the non-executive employee towards his full-recourse promissory note. In consideration, the Company agreed to extend the due date of the full-recourse promissory note to September 2018, and forgive the remaining balance due under the full-recourse promissory note provided that the non-executive executes certain releases related to the Company’s March 2018 restructuring.

In April 2018, the Company granted options under the Inducement Plan to Mr. Barton to purchase a total of 1,700,000 shares. The total grant date fair value is $1.4 million for these options.

On May 15, 2018, the Company appointed Tom Barton as interim Chief Financial Officer, in addition to his existing roles with the Company.