Class A Redeemable Convertible Preferred Stock (Tables)

12 Months Ended

Dec. 31, 2016

Temporary Equity Disclosure [Abstract]

Summary of Product of Paid-in-kind Dividend Rate


For the Period:	PIK Dividend Rate per Annum in Effect
Commencing on the Original Issue Date and ending on the 1^st anniversary of the Original Issue Date		0.0	%
Commencing on the day after the 1^st anniversary of the Original Issue Date and ending on the 4^th anniversary of the Original Issue Date		4.0	%
Commencing on the day after the 4^th anniversary of the Original Issue Date and ending on the 5^th anniversary of the Original Issue Date		5.0	%
Commencing on the day after the 5^th anniversary of the Original Issue Date and ending on the 6^th anniversary of the Original Issue Date		6.0	%
Commencing on the day after the 6^th anniversary of the Original Issue Date and ending on the 7^th anniversary of the Original Issue Date		7.0	%
Commencing on the day after the 7^th anniversary of the Original Issue Date and ending on the 8^th anniversary of the Original Issue Date		8.0	%
Commencing on the day after the 8^th anniversary of the Original Issue Date and ending on the 9^th anniversary of the Original Issue Date		9.0	%
Commencing on the day after the 9^th anniversary of the Original Issue Date and ending on the date of automatic conversion		10.0	%

Schedule of Redemption Discounts

For the Period:	Discount
Commencing on the Original Issue Date and ending on the 1^st anniversary of the Original Issue Date		9.0909	%
Commencing on the day after the 1^st anniversary of the Original Issue Date and ending on the 2^nd anniversary of the Original Issue Date		6.8182	%
Commencing on the day after the 2^nd anniversary of the Original Issue Date and ending on the 3^rd anniversary of the Original Issue Date		4.5455	%
Commencing on the day after the 3^rd anniversary of the Original Issue Date and ending on the 4^th anniversary of the Original Issue Date		2.2727	%

Schedule of Originally Issued and Remaining Series A Preferred Stock Accretion to Ten Year Liquidation Value

The fair value of the Series A Preferred Stock originally issued was being accreted to the ten year liquidation value of $190.8 million using an effective interest rate of approximately 10.06% as follows (in thousands):

	Anniversary of Closing Date - Original Issuance on 14,666,667 shares
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Carrying Value	$	73,200	$	80,560	$	88,661	$	97,576	$	107,387	$	118,185	$	130,069	$	143,147	$	157,541	$	173,382
Deemed Dividends		7,360		8,101		8,915		9,811		10,798		11,884		13,078		14,394		15,841		17,434
	$	80,560	$	88,661	$	97,576	$	107,387	$	118,185	$	130,069	$	143,147	$	157,541	$	173,382	$	190,816

After redemption, the fair value of the remaining Series A Preferred Stock will be accreted to the ten year liquidation value of $85.9 million using an effective interest rate of approximately 10.06% as follows (in thousands):

	Anniversary of Closing Date - Post Redemption on 6,600,000 shares remaining
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Fair Value	$	32,940	$	36,252	$	39,897	$	43,909	$	48,324	$	53,183	$	58,531	$	64,416	$	70,893	$	78,021
Deemed Dividends		3,312		3,645		4,012		4,415		4,859		5,348		5,885		6,477		7,128		7,846
	$	36,252	$	39,897	$	43,909	$	48,324	$	53,183	$	58,531	$	64,416	$	70,893	$	78,021	$	85,867

Schedule of Beneficial Conversion Feature At Original Issue Date

The calculation of the Beneficial Conversion Feature at the Original Issue Date is as follows (in thousands except share and per share amounts):

Issue date fair value	$	73,200	Common shares the stock converts into		14,666,667
Common shares the stock coverts into		14,666,667	Excess fair value of stock over conversion price	$	3.05
Effective conversion price	$	4.99	Value of beneficial conversion feature	$	44,720

Stock price on issue date	$	8.04	Fair Value	$	73,200
Effective conversion price	$	4.99	Value of Beneficial Conversion Feature	$	(44,720	)
Excess fair value over conversion price	$	3.05	Carrying Value	$	28,480

Schedule of Components of Series A Preferred Stock, Separately for Shares Redeemed and for Shares Remaining, After Redemption and Loss on Redemption

The following table details the amounts recorded for the components of the Series A Preferred stock separately for the shares redeemed and for the shares remaining after redemption:

Reconciliation of amounts recorded	Original Issue Date			Redeemed Shares			Shares Remaining			Income Statement Impact
Shares of Series A Preferred Stock		14,666,667			8,066,667			6,600,000

Face (conversion) value	$	110,000		$	60,500		$	49,500		$	-
Issue discount		(36,800	)		(20,240	)		(16,560	)		-
Beneficial conversion feature		(44,720	)		(24,596	)		(20,124	)		-
Carrying value at Original Issue Date		28,480			15,664			12,816			-

Deemed dividends expense recorded		7,360			4,048			3,312			7,360
Amortization expense of BCF		14,988			8,244			6,745			14,988
Carrying value pre-redemption	$	50,828		$	27,956		$	22,873		$	22,348
Accelerate discount expense on redeemed shares					18,973			-			18,973
Remove deemed dividends not payable on redeemed shares					(2,781	)		-			(2,781	)
Remove BCF not realized by holder					(8,244	)		-			(8,244	)
Add original amount of BCF back to Series A Preferred Stock from APIC					24,596			-			-
Record cash paid at redemption of $55.0 million					(60,500	)		-			(5,500	)
Carrying value after redemption at December 31, 2016					-			22,873			-
Cumulative impact on income statement											24,796

Amounts from deemed dividends and discounts											18,051
Amounts from BCF											6,745

To calculate any gain or loss realized on the redemption of the Series A Preferred Stock, the Company took the carrying value of the shares of Series A Preferred Stock before the redemption and added the amount of the beneficial conversion feature originally recorded with the redeemed shares and compared that total to the consideration being paid, in this case the $55 million. The following table summarizes the calculation of the net loss realized upon the redemption of the 8,066,667 shares of Series A Preferred Stock which agrees with the cumulative impact on the income statement in the table above.

Calculation of loss on redemption
Carrying value pre-redemption on shares redeemed	$	27,956
Value of original BCF on redeemed shares		24,596
		52,552
Cash paid to redeem shares		55,000
Loss on redemption of Series A Preferred Stock		(2,448	)

Income statement expense pre-redemption		22,348
Plus: Loss on redemption of Series A Preferred Stock		2,448
Cumulative income statement impact as of December 31, 2016	$	24,796