8x8 2006 Annual Report Download - page 57

54
NET LOSS PER SHARE
Basic net loss per share is computed by dividing net loss available to common stockholders (numerator) by the
weighted average number of common shares outstanding during the period (denominator). Due to net losses
incurred for all periods presented, weighted average basic and diluted shares outstanding for the respective periods
are the same. The following equity instruments were not included in the computations of net loss per share because
the effect on the calculations would be anti-dilutive (in thousands):
2. COMMON STOCK OFFERINGS
In December 2005, the Company sold 7,142,858 shares of its common stock at $2.10 per share for aggregate
proceeds of approximately $15,000,000, before placement fees and other offering expenses. The purchasers also
received five year warrants to purchase 1,785,714 shares of 8x8 common stock at an exercise price of $3.00 per
share. The shares issued in this offering were issued under a shelf registration statement previously filed with the
Securities and Exchange Commission relating to the sale of up to $125,000,000 of 8x8 securities. The Company
paid total cash fees of six percent of the gross proceeds to the placement agents, and issued to the placement agents
three year warrants to purchase 142,858 common shares at $2.10 per share and 35,714 common shares at $3.00 per
share. As a result of this offering, certain anti-dilution provisions included in warrants issued to investors in
common stock offerings completed during fiscal 2005 were triggered. Accordingly, the Company modified a
warrant to purchase 2,000,000 shares at an exercise price of $2.88 per share so that it is now exercisable for
2,071,818 shares at an exercise price of $2.79 per share. The Company also modified a warrant to purchase
1,498,538 shares at an exercise price of $3.84 per share so that it is now exercisable for 1,587,806 shares at an
exercise price of $3.61 per share. No other terms of the warrants were affected. All of the warrants were
outstanding as of March 31, 2006.
In March 2005, the Company sold 6,897,618 shares of its common stock at $2.10 per share for aggregate proceeds
of approximately $14,500,000, before placement fees and other offering expenses. The shares issued in this
offering were issued under a shelf registration statement previously filed with the Securities and Exchange
Commission. The Company paid total cash fees of six percent of the gross proceeds to the placement agents, and
issued three year warrants to purchase 137,952 common shares at $2.10 per share. As a result of this offering,
certain anti-dilution provisions included in warrants issued to investors in common stock offerings completed during
fiscal 2005 were triggered. Accordingly, the Company modified a warrant to purchase 1,920,000 shares at an
exercise price of $3.00 per share so that it became exercisable for 2,000,000 shares at an exercise price of $2.88 per
share. The Company also modified a warrant to purchase 1,404,000 shares at an exercise price of $4.10 per share so
that it became exercisable for 1,498,538 shares at an exercise price of $3.84 per share. No other terms of the
warrants were affected. All of the warrants were outstanding as of March 31, 2006. All of the warrants were
outstanding as of March 31, 2006.
In October 2004, the Company sold 3,508,772 shares of its common stock at $3.42 per share for aggregate proceeds
of approximately $12,000,000, before placement fees and other offering expenses. The purchaser also received a
five year warrant to purchase 1,403,509 shares of 8x8 common stock at an exercise price of $4.10 per share. The
shares issued in this offering were issued under a shelf registration statement previously filed with the Securities and
Exchange Commission. The Company paid total cash fees of six percent of the gross proceeds to the placement
agents, and issued three year warrants to purchase 175,438 common shares at $3.42 per share and 70,175 common
shares at $4.10 per share. All of the warrants were outstanding as of March 31, 2006.
In June 2004, the Company sold 4,800,000 shares of its common stock at $2.50 per share for aggregate proceeds of
approximately $12,000,000, before placement fees and other offering expenses. The purchaser also received a five
year warrant to purchase 1,920,000 shares of 8x8 common stock at an exercise price of $3.00 per share. The shares
Year s Ende d Mar ch 3 1 ,
2006 2005 2004
Common stock options.................................................... 8,871 7,146 6,213
Warrants............................................................................
.
8,417 6,117 2,319
17,288 13,263 8,532