NetFlix 2002 Annual Report Download - page 70

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NETFLIX, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Years Ended December 31, 2000, 2001 and 2002
(in thousands, except share, per share and per DVD data)
6. Redeemable Convertible Preferred Stock
The redeemable convertible preferred stock at December 31, 2001 consisted of the following:
Par Value Number of Shares
Authorized
Number of
Shares
Issued and
Outstanding Dividends Per
Share
Redemption
and
Liquidation
Value Per
Share
Total
Liquidation
Value
Series B $ 0.001 5,776,616 5,684,024 $ 0.08648 $ 1.08 $ 6,139
Series C 0.001 4,750,000 4,650,269 0.2616 3.27 15,205
Series D 0.001 4,650,000 4,649,927 0.5216 6.52 30,318
Series E 0.001 5,874,199 5,007,530 0.7500 9.38 46,971
Series E−1 0.001 5,874,199 325,159 0.7500 9.38 3,050
26,925,014 20,316,909 $ 101,683
Conversion
These shares automatically converted into 9,659,700 shares of common stock upon the closing of the Company’s initial public offering.
7. Stockholders’ (Deficit) Equity
The convertible preferred stock at December 31, 2001 consisted of the following:
Par Value
Number of
Shares
Authorized
Number of
Shares
Issued and
Outstanding Dividends Per
Share
Liquidation
Value Per
Share
Total
Liquidation
Value
Series A $ 0.001 5,000,000 4,444,545 $ 0.0500 $ 0.50 $ 2,222
Series F 0.001 3,500,000 1,712,954 — — —
8,500,000 6,157,499 $ 2,222
The Company’s obligation to maintain the studios equity interests at 6.02% of the Company’s fully diluted equity securities, as discussed in note 1, resulted in the Company issuing
3,492,737 shares of Series F Non−Voting Convertible Preferred Stock to the studios during 2002. This obligation terminated immediately prior to the Company’s initial public offering. All
the outstanding convertible preferred stock automatically converted into 3,216,740 shares of common stock upon the closing of the Company’s initial public offering.