Fair Value Measurements (Tables)

9 Months Ended

Nov. 01, 2014

Summary of Fair Value Assumptions for Derivative Liabilities

The fair value of the Series B Preferred shares was estimated using an option-pricing model that requires Level 3 inputs, which are highly subjective and determined using the following significant assumptions as of:



	November 1, 2014	November 2, 2013
Stock price	$1.52	$2.59
Conversion price	$1.75	$1.75
Expected volatility	76%	72%
Expected term (in years)	7.1	8.1
Risk free interest rate	2.05%	2.34%
Expected dividends	$—	$—

Summary of Activity Recorded for Derivatives Using Level 3 Inputs

The following table presents the activity recorded for the derivative liability during the first three quarters ended:



	November 1, 2014			November 2, 2013
	(In thousands)
Beginning balance	$	30,720		$	20,082
(Gain) loss on change in fair value	(1,225		)	9,290
Balance at end of first quarter	29,495			29,372
(Gain) loss on change in fair value	(10,434		)	21,154
Balance at end of second quarter	19,061			50,526
(Gain) loss on change in fair value	(4,881		)	(23,444		)
Ending balance	$	14,180		$	27,082