POTBELLY CORP | 2013 | FY | 3


A summary of the status of the Company’s issued warrants as of December 29, 2013 is set forth below:

 

Unexercised Warrants

   Number of
Warrants
 

Outstanding—December 25, 2011

     378,996   

Issuance of warrants at $8.16 per share (a)

     241,704   

Exercise of warrants at $5.46 per share

     (261,104
  

 

 

 

Outstanding—December 30, 2012

     359,596   

Exercise of warrants at $0.01 per share

     (117,892
  

 

 

 

Outstanding—December 29, 2013

     241,704   
  

 

 

 

 

(a) As part of the initial investment by outside investors in 2001, the Company issued stock warrants convertible to 200,000 shares of common stock at an exercise price of $5.00 per share, which expired on September 1, 2011. After the expiration of these warrants and to recognize past and continued service to the Board, the Company issued an additional 241,704 warrants at an exercise price of $8.16 per share. The Company used the following assumptions for purposes of valuing these warrants granted in 2011: common stock fair value of $8.16 per share; expected life of warrants-five years; volatility-53%; risk-free interest rate-1.05%; and dividend yield-0%.

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