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7. Stockholders’ equity
Common stock warrants
On June 28, 2011, all common stock warrants outstanding were exercised for 21,525 shares of common stock on a net exercise basis.
Reserve for unissued shares
At June 30, 2011 and December 31, 2010, we are authorized to issue up to 34,900 shares of common stock. We are required to reserve and keep available out of our authorized but unissued shares of common stock such number of shares sufficient to effect the exercise of all outstanding common stock warrants, plus shares granted and available for grant under our Amended and Restated 2001 Stock Incentive Plan (the “2001 Plan”) and 2011 Equity Incentive Plan (the “2011 Plan”).
The amount of such shares of common stock reserved for these purposes is as follows:
|
|
|
Number of Shares |
|
|
|
|
June 30,
2011 |
|
December 31,
2010 |
|
|
|
|
(in thousands) |
|
|
Conversion of Series C convertible preferred stock |
|
— |
|
13,180 |
|
|
Outstanding stock options under the 2001 Plan |
|
4,816 |
|
5,288 |
|
|
Outstanding stock options under the 2011 Plan |
|
2,164 |
|
— |
|
|
Conversion of Series A convertible preferred stock |
|
— |
|
5,053 |
|
|
Conversion of Series B convertible preferred stock |
|
— |
|
3,433 |
|
|
Conversion of Series A-2 convertible preferred stock |
|
— |
|
1,180 |
|
|
Shares available for grant under the 2011 stock option plan |
|
1,836 |
|
— |
|
|
Additional shares available for grant under the 2001 stock option plan |
|
— |
|
210 |
|
|
Outstanding common stock warrants |
|
— |
|
26 |
|
|
Outstanding Series B preferred stock warrants |
|
— |
|
26 |
|
|
Total |
|
8,816 |
|
28,396 |
|
Note receivable from stockholder
During 2002, we granted 290,000 shares of restricted common stock to an officer at the deemed fair value of $0.30 per share in exchange for cash proceeds of approximately $9,000 and issuance of a partial recourse note (the “note”) of approximately $78,000 payable with an interest rate equal to the applicable federal rate. On January 11, 2011, we forgave the note and the principal and interest outstanding of approximately $103,000 were expensed as compensation. The note was classified as contra equity on our unaudited condensed consolidated balance sheet at December 31, 2010 in accordance with guidance provided by FASB ASC 505, Equity. Interest was accrued on the note, and was included in interest and other income (expense), net in the accompanying unaudited condensed consolidated statements of operations. |