Convertible Notes, Convertible Preferred Stock and Common and Preferred Stock Warrants

8% Convertible Promissory Notes ("8% Notes")

In July 2018, upon the Company’s IPO, the $221.6 million including principal and accrued interest of outstanding 8% Notes automatically converted into shares of Class B common stock. See Note 6 - Outstanding Loans and Security Agreements for details. The original 8% Notes converted to shares of Series G convertible preferred stock at a conversion price of $38.64 per share and, concurrently, each such share of Series G convertible preferred stock converted automatically into one share of Class B common stock. Upon the IPO, 5,734,440 shares of Class B common stock were issued as a result of the note conversions. The Company recorded the debt retirement with a charge of $221.6 million to additional paid-in capital.

Convertible Preferred Stock

The following table summarizes the Company’s convertible preferred stock as of the conversion date (in thousands, except share data):



	Shares Authorized	Shares Issued and Outstanding	Carrying Value at Conversion

Series A preferred	9,374,101	9,374,101	$	8,956
Series B preferred	7,868,854	7,868,854	11,941
Series C preferred	5,979,062	5,979,062	44,928
Series D preferred	6,443,818	6,443,818	102,648
Series E preferred	9,486,362	9,486,362	198,264
Series F preferred	14,597,248	13,885,893	376,962
Series G preferred	26,712,107	18,702,072	722,142
	80,461,552	71,740,162	$	1,465,841

The shares of the Company's convertible preferred stock converted into an equal number of shares of Class B common stock upon the completion of the IPO and the Company issued 71,740,162 shares of Class B common stock. As of December 31, 2018, no shares of convertible preferred stock were outstanding.

Preferred Stock Warrants

The following table summarizes preferred stock warrants outstanding (in thousands, except warrants outstanding):



	December 31,
	2018			2017
	Warrants Outstanding	Fair Value		Warrants Outstanding	Fair Value

Series F	—	$	—	581,182	$	8,378
Series G	—	—		279,606	1,447
	—	$	—	860,788	$	9,825

The Company recorded a gain of $8.9 million, $3.1 million, and $0.8 million during the years ended December 31, 2018, 2017 and 2016, respectively, attributable to the changes in the warrants' fair value which was included in other income (expense), net in the consolidated statement of operations.

The warrants for the Company's convertible preferred stock were exercisable into an equal number of shares of Class B common stock upon the completion of the IPO in July 2018. The 860,788 preferred stock warrants were converted to common stock warrants of Class B shares and the warrant liability of $0.9 million was eliminated from the consolidated balance sheet with a charge to additional paid-in capital as a result of the conversion.

Common Stock Warrants

Common Stock Warrants - 860,788 preferred stock warrants, described above, converted to warrants to purchase 860,788 shares of Class B common stock upon the Company's IPO. After expiration of 100,000 preferred stock warrants at IPO, a total of 760,788 warrants remain outstanding at December 31, 2018. These warrants are not subject to further remeasurement for fair value post IPO.

CPPIB Common Stock Warrants - In connection with the issuance of the 6% Convertible Promissory Notes in December 2015 and September 2016, the Company issued warrants to purchase up to a maximum of 146,666 shares and 166,222 shares of the Company’s common stock to J.P. Morgan and CPPIB, respectively. During 2017, the fair value of the common stock warrants was re-measured and $0.2 million in warrant expense was charged to the consolidated statement of operations. On August 31, 2017, J.P. Morgan assigned their warrants to CPPIB and the Company concurrently reclassified $9.4 million of accrued warrant liabilities to additional paid-in capital. The warrants were not subject to further remeasurement for fair value. Effective with the IPO, all 312,888 warrants were net exercised for 312,575 shares of Class B common stock.

Other Common Stock Warrants - During 2014 and in connection with a dispute settlement with the principals of a securities placement agent, the Company issued warrants to purchase 33,333 shares of the Company’s common stock at $38.64 per share. The fair value of $3.3 million was recorded as expense in the consolidated statements of operations in 2013 when it was determined that the obligation became probable. The common stock warrants were immediately exercisable for Class B common shares effective with the IPO, subject to the debt repayment requirements in the settlement agreement, and have not been exercised.