Shareholders' Equity And Puttable Common Stock

12 Months Ended

Dec. 31, 2012

Shareholders' Equity And Puttable Common Stock [Abstract]

Shareholders' Equity And Puttable Common Stock

NOTE 17: SHAREHOLDERS' EQUITY AND PUTTABLE COMMON STOCK

The Company has 10,000,000 authorized shares of common stock at a par value of $0.01; 5,000 authorized preferred shares at a par value of $100; and 10,000,000 authorized shares of preferred stock at a par value of $0.01.

The Company issued 272,479 shares of the Company's common stock with a put option pursuant to the Lock-Up and Put Agreement entered into on October 21, 2011 and in connection with the Asset Purchase Agreement. The members of Alteva, LLC had the option to put the 272,479 shares back to the Company on October 21, 2012 and December 15, 2012. The puttable common stock in connection with the Company's purchase of substantially all of the assets and assumption of certain liabilities of Alteva, LLC was issued with redemption features that are not solely within the control of the Company and is classified outside of permanent equity (often referred to as classification in "temporary equity"). The Company fair valued the puttable common stock at the date of acquisition in the amount of $4.1 million at December 31, 2011.

As a result of the Sale Agreement, 247,331 of the Alteva Shares were sold in a block trade, and as a result of the Amendment, 25,148 puttable shares were acquired by the Company. As a result of the transactions (see Note 3) the Company reclassified the puttable common stock out of "temporary equity" and into "permanent equity."