“As Converted to Common Stock Basis” is a stock ownership concept that determines the rights and/or benefits of holders of Preferred Stock based on the assumption that all shares of Preferred Stock have converted into shares of Common Stock.

The issued and outstanding shares on an As Converted to Common Stock Basis include: (i) the actual shares of Common Stock then issued and outstanding; (ii) the number of shares of Common Stock that would result from the applicable conversion of the then outstanding shares of Preferred Stock, using the applicable Conversion Ratio for each series of Preferred Stock then outstanding; and (iii) all of the shares of Common Stock that would result from the exercise of all of the then outstanding convertible securities (e.g., Stock Options and Warrants).

For more information regarding the As Converted to Common Stock Basis, please see the related resources from the Legal INCubator: