3Ware 1999 Annual Report Download - page 34

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On July 31, 1998, the Company entered into an equipment line of credit with a bank. The line of credit provided
for borrowings of up to $1,000,000 at the bank’s prime rate plus 0.5% (8.25% at March 31, 1999). The Company paid off
the outstanding balance of $565,000 including accrued interest on April 1, 1999.
Principal maturities of the notes payable at March 31, 1999 are as follows:
Year Ended March 31, (in thousands)
2000 $1,862
2001 1,394
2002 1,495
2003 1,603
2004 503
$6,857
5. STOCKHOLDERS’ EQUITY
STOCK OFFERINGS
In December 1997, the Company completed an initial public offering of its Common Stock. The offering raised net proceeds
to the Company of approximately $25.1 million. In March 1998, the Company completed a secondary public offering of
Common Stock in which the Company raised net proceeds of approximately $26.9 million.
CONVERTIBLE PREFERRED STOCK
On April 24, 1997, the Board authorized the Company to repurchase up to $4.0 million of Convertible Preferred Stock, with
priority given to the holders of Convertible Preferred Stock that submitted bids for the sale of their shares of Convertible
Preferred Stock at the lowest price per share. On June 20, 1997, the Company repurchased an aggregate of 172,300 shares of
Convertible Preferred Stock for approximately $3.9 million at prices between $1.20 and $2.61 per share on an as converted
to common stock basis. In connection with the initial public offering, all then-outstanding shares of Convertible Preferred
Stock immediately converted into 10,717,317 shares of Common Stock.
PREFERRED STOCK
In November 1997, the Certificate of Incorporation was amended to allow the issuance of up to 2,000,000 shares of Preferred
Stock in one or more series and to fix the rights, preferences, privileges and restriction thereof, including dividend rights, div-
idend rates, conversion rights, voting rights, terms of redemption, redemption prices, liquidation preferences and the number
of shares constituting any series of the designation of such series, without further vote or action by the stockholders.
STOCK OPTIONS AND OTHER STOCK AWARDS
The Company’s 1992 Stock Option Plan (“1992 Plan”) provides for the granting of incentive and nonqualified stock options
to employees. Generally, options are granted at prices at least equal to fair value of the Company’s Common Stock on the date
of grant. In addition, certain officers, employees and directors have been granted nonqualified stock options. The Company’s
1982 Employee Incentive Stock Option Plan expired in 1992.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
32
1999
AMCC