TiVo 2003 Annual Report Download - page 70

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Table of Contents
• Interest expense and other for the year ended January 31, 2004 includes coupon interest expense of $732,000; amortization of the discount
pertaining to the value of the warrants issued on convertible notes payable of $388,000; and amortization of the discount pertaining to the value of
beneficial conversion of $1.4 million. Interest expense and other for the year ended January 31, 2003 included coupon interest expense of $2.0
million; amortization of the discount pertaining to the value of the warrants issued on convertible notes payable of $3.5 million; which included
accelerated amortization of $2.4 million recorded due to conversions of notes payable during the year; and amortization of the discount pertaining
to the value of beneficial conversion of $12.2 million, which included accelerated amortization of $9.5 million due to the conversion of notes
payable during the year.
• Interest expense and other-related parties for the year ended January 31, 2004 includes coupon interest of $669,000; amortization of the discount
pertaining to the value of the warrants issued on convertible notes payable-related parties of $1.2 million; which includes accelerated amortization
of $878,000 due to conversions of notes payable – related parties during the year; and amortization of the discount pertaining to the value of the
beneficial conversion of $4.8 million, which includes accelerated amortization of $3.6 million due to conversions of notes payable – related parties
during the year. Interest expense and other-related parties for the year ended January 31, 2003 included coupon interest of $1.0 million;
amortization of the discount pertaining to the value of the warrants issued on convertible notes payable-related parties of $1.3 million; which
included accelerated amortization of $679,000 due to conversions of notes payable – related parties during the year; and amortization of the
discount pertaining to the value of the beneficial conversion of $3.9 million, which included accelerated amortization of $2.7 million due to
conversions of notes payable – related parties during the year.
• The 7% coupon interest for the remaining outstanding noteholders is paid semi-annually with the next payment of $365,750 for convertible notes
payable scheduled for payment and paid on February 15, 2004.
• Amortization of the discount resulting from the issuance of warrants to noteholders on convertible notes payable and convertible notes payable-
related parties was $1.6 million and $4.8 million for the years ended January 31, 2004 and 2003, respectively.
• Amortization of the discount pertaining to the value of the beneficial conversion of the convertible notes payable and convertible notes payable-
related parties was $6.2 million and $16.1 million for the years ended January 31, 2004 and 2003, respectively.
9. REDEEMABLE CONVERTIBLE PREFERRED STOCK, COMMON STOCK AND STOCKHOLDERS' EQUITY
Redeemable Convertible Preferred Stock
In September 2000, the Company issued 2,711,861 shares of Series A convertible preferred stock for $30.00 per share to AOL in exchange for $81.4
million, before issuance costs of $2.4 million. Due to the redemption feature of these shares, they were classified as redeemable convertible preferred stock.
On January 30, 2001, pursuant to the terms of the Second Amendment to the Investment Agreement between the Company and AOL, the redemption
feature was removed from 1,111,861 shares of redeemable convertible preferred and these shares were classified as convertible preferred stock. As of January
31, 2002, there were 1,600,000 shares of current redeemable convertible preferred stock outstanding. As of April 30, 2002, the Company recorded accretion
of $1.4 million to increase the carrying value of the Series A Redeemable convertible preferred stock to its redemption value of $48.0 million. As of April 30,
2002, the Company redeemed the 1,600,000 shares of redeemable convertible preferred stock owned by AOL in exchange for $48.0 million in restricted cash.
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