TiVo 2003 Annual Report Download - page 62

Table of Contents
Net Loss Per Common Share
Basic and diluted net loss per common share is calculated in accordance with SFAS No. 128, "Earnings Per Share." Basic net loss per common share is
computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding excluding repurchasable
common stock and unvested restricted stock outstanding of 655,044 shares, 524,268 shares, and 627,880 shares for the fiscal years ended January 31, 2004,
2003, and 2002, respectively. The net loss attributable to common stockholders is calculated by deducting the Series A redeemable convertible preferred stock
dividend, accretion to redemption value of Series A redeemable convertible preferred stock, and the repurchasable common stock from the net loss.
The weighted average number of shares outstanding used in the computation of basic and diluted net loss per share does not include the effect of the
following potentially outstanding common stock. The effect of these potentially outstanding shares were not included in the calculation of diluted net loss per
share because the effect would have been antidilutive:
Number of shares
Fiscal Year Ended January 31,
.
2004 2003 2002
Series A redeemable convertible preferred stock — — 1,600,000
Series A convertible preferred stock — — 1,111,861
Repurchasable common stock 546,662 524,268 627,880
Unvested restricted stock outstanding 108,382 — —
Number of common shares issuable for convertible notes payable 2,619,048 5,125,313 8,119,266
Options to purchase common stock 13,213,370 11,438,096 10,634,966
Potential shares to be issued from ESPP 217,163 235,918 204,533
Warrants to purchase common stock 5,504,781 5,800,209 8,539,812
Total 22,209,406 23,123,804 30,838,318
Comprehensive Loss
The Company has no material components of other comprehensive income or loss and, accordingly, the Comprehensive Loss is the same as the net loss
for all periods presented.
Fair Value of Financial Instruments
The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term maturity of
these instruments.
Because the Company's convertible notes are not publicly traded, the Company estimates the fair value of its outstanding convertible notes by utilizing
the value of the common stock that the notes are convertible into. As these convertible notes are deeply in the money, the Company estimates that the
convertible notes can be valued using the fair value of the underlying stock.
As of January 31, 2004, the convertible notes payable long-term, face value of $10,450,000, were convertible (using the conversion price then in effect
of $3.99) into 2,619,048 shares of the Company's common stock. The closing price of the Company's common stock on January 30, 2004, as quoted on the
Nasdaq, was $10.75. If converted, the total fair value of these shares at the closing price would have been $28.2 million.
As of January 31, 2003, the convertible notes payable long-term, face value of $10,450,000, were convertible (using the conversion price then in effect
of $3.99) into 2,619,048 shares of the Company's common stock. The closing price of the Company's common stock on January 31, 2003, as quoted on the
Nasdaq, was $5.17. If converted, the total fair value of these shares at the closing price would have been $13.5 million. The convertible notes payable-related
parties long-term, face value of $10,000,000, were convertible (using the conversion price of $3.99 then in effect) into 2,506,265 shares of the Company's
common stock at January 31, 2003. If converted, the total fair value of these shares at the closing price would have been $13.0 million.
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