Question-and-Answer Session
Operator
(Operator Instructions) Your first call comes from [Rob Wolgemas – Inside Investments]
[Rob Wolgemas – Inside Investments]
A couple of quick questions, one is about the convertible note holders. Is it possible to convert them without diluting the stock significantly?
Marvin Toland
I think I can only give the facts in this case. We do have $100 million authorized shares for the company. There's slightly more than 30 million currently outstanding and somewhat less than five million tied up by RSU option grants and future option grants.
Another approximately 20 million in our 19.9 million are in warrants given to term loan. Those are really the only rules that regard the conversion of the convertible holders.
[Rob Wolgemas – Inside Investments]
Is it possible with the convertible note holders to give them cash?
Marvin Toland
No. Our loan agreements don't allow that.
[Rob Wolgemas – Inside Investments]
Is there anyone at the company who you would say is protecting the rights of shareholders, either on your Board or on your management team?
Neil Fiske
I think as a Board and as a management team we have a set of very clear obligations to all of our stakeholders and we think about every stakeholder in all of the discussion we've had and the options we're pursing, and again I think from a shareholder standpoint, we believe that the path that we're on trying to get the converts to convert is the first step of restructuring our balance sheet is in the long term interests of the company and the shareholder because it doesn't do any of us any good to have a structure with too much debt on the balance sheet.
[Rob Wolgemas – Inside Investments]
We feel positive about the company, the product all that kind of thing. We just feel like in these kinds of situations, shareholders a lot of times get the short end of the stick especially in light of the fact that your business is in many ways improving and has over the last couple of years because of good decisions you've made in terms of the product.
So my other question was really more around the length of time that you got from the senior debt holders. Was it not possible to get more than one year relief because it seems like you gave up a lot really just to get 12 months of relief. Just interested to hear your comments on that.
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