iRobot 2005 Annual Report Download - page 72

iROBOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
Upon dissolution or liquidation of the Company, holders of common stock will be entitled to receive all
available assets subject to any preferential rights of any then outstanding preferred stock.
8. Redeemable Convertible Preferred Stock
The Company's redeemable convertible preferred stock, $0.01 par value, is comprised of the following:
December 31,
2005 2004
(In thousands)
Series F; 1,412 shares authorized, issued and outstanding at December 31,
2004, net of issuance costs (liquidation preference $10,000) ÏÏÏÏÏÏÏÏÏÏÏÏ $ Ì $ 9,945
Series E; 2,799 shares authorized, issued and outstanding at December 31,
2004, net of issuance costs (liquidation preference $13,045) ÏÏÏÏÏÏÏÏÏÏÏÏ Ì 12,922
Series D; 1,871 shares authorized, issued and outstanding at December 31,
2004, net of issuance costs (liquidation preference $7,000) ÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 6,766
Series C; 1,470 shares authorized, issued and outstanding at December 31,
2004, net of issuance costs (liquidation preference $5,500) ÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 5,478
Series B; 668 shares authorized, issued and outstanding at December 31,
2004, net of issuance costs (liquidation preference $1,000) ÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 967
Series A; 1,336 shares authorized, issued and outstanding at December 31,
2004, net of issuance costs (liquidation preference $1,550) ÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì 1,428
$ Ì $37,506
In conjunction with the Company's initial public offering on November 15, 2005, all series A, B, C, D, E
and F redeemable convertible preferred stock converted to common stock of the Company on a 1-for-1 basis.
At December 31, 2005, there was no preferred stock outstanding.
9. Note Receivable from Stockholder
In May 1999, the Company issued a note receivable to a consultant for the purchase of 200,000 common
shares at $0.24 per share. The note accrued interest on June 30 and December 31 at 8% per annum. Interest
was payable semiannually in arrears on June 30 and December 31 of each year, and the principal was payable
in full on the earlier of May 15, 2005, or immediately prior to an initial public offering. At December 31, 2004
the remaining note receivable balance was $43,000 and was included as a reduction of stockholders' equity.
This remaining balance was paid in full in 2005.
10. Stock Option Plan
Under the Company's 1994 Stock Option Plan (the ""1994 Plan''), as amended, 8,785,465 shares of the
Company's common stock were reserved for issuance to directors, officers, employees and consultants of the
Company. Options may be designated and granted as either ""Incentive Stock Options'' or ""Nonstatutory''
Stock Options. Eligibility for Incentive Stock Options (""ISOs'') is limited to those individuals whose
employment status would qualify them for the tax treatment associated with ISOs in accordance with the
Internal Revenue Code. The 1994 Plan expired November 16, 2004.
In October 2001, the Company adopted the 2001 Special Stock Option Plan (the ""2001 Plan''). Under
the 2001 Plan, the Board authorized the issuance of options to purchase 642,310 shares of previously
authorized common stock under modified vesting requirements. The 2001 Plan is administered by a
Committee of the Board of Directors. Options granted to employees under the 2001 Plan may be designated as
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