XML 71 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Warrants for Preferred Stock
12 Months Ended
Jan. 31, 2014
Text Block [Abstract]  
Warrants for Preferred Stock

9. Warrants for Preferred Stock

In connection with the Loan and Security Agreement, and its subsequent amendments and extensions (see Note 8), the Company issued various warrants to purchase an aggregate 1,190,000 shares of the Company’s Series G Convertible Preferred Stock at an exercise price of $0.94 per share. The warrants were issued at various times during the fiscal years ended January 31, 2011 and 2012 and had terms ranging from nine to ten years. The Company calculated the fair value of the warrants utilizing the Black-Scholes option pricing model with the following ranges of assumptions: volatility of 54.92% to 55.73%, term of nine to ten years, risk-free interest rate of 1.83% to 3.36%, and a dividend yield of 0%. The Company recorded the original fair value of the warrants, aggregating $1,049, as debt discount with an offset to preferred stock warrant liability. The preferred stock warrant liability was marked to market on a quarterly basis with the offsetting adjustment reflected in other income (expense), net in the accompanying consolidated statements of operations.

As a result of the 1-for-6.5 reverse stock split effected with respect to the Company’s common stock on June 8, 2012, and the conversion to common stock of all outstanding shares of preferred stock upon the closing of the Company’s initial public offering on July 3, 2012, the warrants became exercisable for 183,076 shares of common stock at an exercise price of $6.11 per share. In addition, upon the closing of the initial public offering, the Company performed a final mark-to-market adjustment of the fair value of the warrants and recorded a gain of $165 to other income (expense), net in the second quarter of fiscal year 2013. Lastly, upon closing of the initial public offering, the warrants were no longer required to be classified as a liability and the final warrant fair value of $1,324 was reclassified to additional paid-in capital.

On July 6, 2012, Gold Hill exercised warrants on a cashless basis to purchase an aggregate 161,538 shares of common stock, as a result of which the Company issued 67,268 shares of common stock.

As of January 31, 2014 and 2013, warrants to purchase 21,538 shares of common stock remain outstanding.