Zhone Technologies Annual Report 2004

Series A
redeemable
convertible
preferred stock
Series AA
redeemable
convertible
preferred stock
Series B
redeemable
convertible
preferred stock Common stock Additional
Shares Amount Shares Amount Shares Amount Shares Amount
paid-in
capital
Notes
receivable
from
stockholders
Deferred
stock
compensation
Other
comprehensive Accumulated
loss deficit
Total
stockholders’
equity
(deficit)
Balances as of December 31, 2003 ....................... — — — — — — 76,629 77 787,567 (550) (4,444) (14) (595,757) 186,879
Exercise of stock options for cash ........................ — — — — — — 640 1 1,034 — — — — 1,035
Issuance of common stock in connection with employee stock
purchase plan ...................................... — — — — — — 120 0 346 — — — — 346
Amortization of deferred compensation related to stock option
grants ............................................ — — — — — — — — — — 1,734 — — 1,734
Reversal of unamortized deferred compensation ............. — — — — — — — — (2,352) — 2,352 — — —
Reversal of stock-based compensation .................... — — — — — — — — (135) — — — — (135)
Non-cash stock based compensation expense and other ....... — — — — — — 103 — 119 — — — — 119
Issuance of warrants for services ......................... — — — — — — — — 21 — — — — 21
Issuance of common stock and stock options for acquisition . . . — — — — — — 16,647 16 75,661 — (180) — — 75,497
Comprehensive loss:
Netloss......................................... — — — — — — — — — — — — (35,646) (35,646)
Foreign currency translation adjustment ............... — — — — — — — — — — — 24 — 24
Unrealized loss on available for sale securities .......... — — — — — — — — — — — (90) — (90)
Total comprehensive loss ............................... (35,712)
Balances as of December 31, 2004 ....................... — $— — $— — $— 94,139 $ 94 $862,261 $(550) $ (538) $ (80) $(631,403) $229,784
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See accompanying notes to consolidated financial statements.