| Allocation of Cash from Series G Preferred and Warrants Issued |
The following table summarizes the allocation for each of these
transactions as of October 11, 2010:
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|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Financing |
|
|
Exchange |
|
|
Total |
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|
Redeemable preferred stock (1)
|
|
$ |
2,747,476 |
|
|
$ |
888,997 |
|
|
$ |
3,636,473 |
|
|
Compound embedded derivatives (2)
|
|
|
1,389,114 |
|
|
|
261,318 |
|
|
|
1,650,432 |
|
|
Warrant derivatives (2)
|
|
|
913,410 |
|
|
|
161,190 |
|
|
|
1,074,600 |
|
|
Extinguishment loss
|
|
|
— |
|
|
|
(383,023 |
) |
|
|
(383,023 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,050,000 |
|
|
$ |
928,482 |
|
|
$ |
5,978,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The fair value of the redeemable
preferred stock was estimated based upon its forward cash flow
value, at a credit-risk adjusted market interest rate, as enhanced
by the fair value of the conversion feature. Credit-risk adjusted
rates used to discount the cash flow component ranged from 3.98% to
4.89% over our estimated period to redemption, which was October
2013. The fair value of the conversion feature is reflected in the
compound embedded derivative line of the table. |
| (2) |
See NOTE K for information related to
the valuation of these financial instruments both on the inception
date of the transactions and at December 31, 2013. |
|