 | 1650 TYSONS BOULEVARD SUITE 300 MCLEAN, VIRGINIA 22102 TELEPHONE: 703.760.7700 FACSIMILE: 703.760.7777 WWW.MOFO.COM | morrison & foerster llp new york, san francisco, los angeles, palo alto, san diego, washington, d.c. denver, northern virginia, orange county, sacramento, walnut creek, century city tokyo, london, beijing, shanghai, hong kong, singapore, brussels |
March 6, 2007
Barbara C. Jacobs
Assistant Director
Division of Corporation Finance
Securities and Exchange Commission
100 F Street, N.E.
Room 4561
Washington, DC 20549
Assistant Director
Division of Corporation Finance
Securities and Exchange Commission
100 F Street, N.E.
Room 4561
Washington, DC 20549
| Re: | Sourcefire, Inc. Registration Statement on Form S-1 filed October 25, 2006, as amended on December 12, 2006, December 22, 2006, January 19, 2007, February 14, 2007, February 23, 2007, February 28, 2007 and March 6, 2007 File No. 333-138199 |
Dear Ms. Jacobs:
We enclose herewith, on behalf of Sourcefire, Inc. (the “Company”), as requested by the Staff during a telephone conversation with the Company today, a revised version of Exhibit E to the Company’s response letter to the Securities and Exchange Commission, dated December 12, 2006. Should you have any additional questions or concerns, please call me at 703-760-7700.
Sincerely,
/s/ Jacob D. Bernstein
Jacob D. Bernstein, Esq.
| cc: | E. Wayne Jackson, III Joseph M. Boyle, Esq. Thomas J. Knox, Esq. Jeffrey S. Marcus, Esq. |
EXHIBIT E
Updated to 12/31/06 (on March 1, 2007)
Updated to 12/31/06 (on March 1, 2007)
| Number of | Fair Value of | |||||||||||||||||||||||||||||||||||||||||||||||||
| Options or Equity | Exercise or | the Underlying | ||||||||||||||||||||||||||||||||||||||||||||||||
| Grant or | Description or Name of | Reason for Grant or | Instruments | Conversion | Shares of | Deferred | Comp Expense 12 | Remaining | Comp Expense | Comp Expense | Comp Expense | Comp Expense | Authoritative | |||||||||||||||||||||||||||||||||||||
| Issuance Date | Type of Security | Option or Equity Holder | Issuance | Granted or Issued | Price | Common Stock | Compensation | mos - 2006 | Expense | 2007 | 2008 | 2009 | 2010 | Guidance | Legend | |||||||||||||||||||||||||||||||||||
| 10/27/05 | Non-qualified Stock Option | Employees | Performance Grant | 6,157 | $ | 8.36 | $ | 8.36 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | APB 25 | A | ||||||||||||||||||||||||||||
| 01/26/06 | Non-qualified Stock Option | Employees | Employment Grant | 171,489 | $ | 8.36 | $ | 8.36 | $ | 751,259 | $ | 207,746 | $ | 543,513 | $ | 207,652 | $ | 176,388 | $ | 149,826 | $ | 9,647 | FAS123R | A | ||||||||||||||||||||||||||
| 04/27/06 | Non-qualified Stock Option | Employees | Employment Grant | 453,178 | $ | 5.26 | $ | 5.26 | $ | 902,792 | $ | 335,256 | $ | 567,536 | $ | 255,983 | $ | 217,387 | $ | 104,072 | $ | (9,906 | ) | FAS123R | B | |||||||||||||||||||||||||
| 10/19/06 | Non-qualified Stock Option | Employees | Perf/Empt Grant | 399,603 | $ | 9.48 | $ | 9.48 | $ | 1,922,373 | $ | 143,437 | $ | 1,778,936 | $ | 626,014 | $ | 495,388 | $ | 420,714 | $ | 236,820 | FAS123R | F | ||||||||||||||||||||||||||
| 11/15/06 | Non-qualified Stock Option | Employees | Employment Grant | 56,955 | $ | 10.41 | $ | 10.41 | $ | 298,134 | $ | 12,814 | $ | 285,320 | $ | 95,849 | $ | 78,417 | $ | 66,617 | $ | 44,437 | FAS123R | F | ||||||||||||||||||||||||||
| 12/14/06 | Non-qualified Stock Option | Employees | Employment Grant | 38,484 | $ | 11.34 | $ | 11.34 | $ | 216,492 | $ | 3,248 | $ | 213,244 | $ | 65,638 | $ | 58,441 | $ | 49,656 | $ | 39,509 | FAS123R | F | ||||||||||||||||||||||||||
| $ | 4,091,050 | $ | 702,501 | $ | 3,388,549 | $ | 1,251,136 | $ | 1,026,021 | $ | 790,885 | $ | 320,507 | |||||||||||||||||||||||||||||||||||||
| 05/24/06 | Series D Redeemable Preferred Stock | Investors | Equity Raise | 2,979,804 | $ | 11.44 | $ | 5.26 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | C, G | |||||||||||||||||||||||||||||
| 06/30/06 | Series D Redeemable Preferred Stock | Investors | Equity Raise | 284,645 | $ | 11.44 | $ | 5.26 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | C, G | |||||||||||||||||||||||||||||
| 07/28/06 | Restricted Common Stock | Board of Directors | Board Service | 15,394 | $ | 0.001 | $ | 7.63 | $ | 117,500 | $ | 48,958 | $ | 68,542 | $ | 68,542 | $ | — | $ | — | $ | — | FAS123R | D | ||||||||||||||||||||||||||
| 08/23/06 | Restricted Common Stock | Board of Directors | Board Service | 12,315 | $ | 0.001 | $ | 7.63 | $ | 94,000 | $ | 31,333 | $ | 62,667 | $ | 62,667 | $ | — | $ | — | $ | — | FAS123R | E | ||||||||||||||||||||||||||
| 4,418,024 | $ | 4,302,550 | $ | 782,792 | $ | 3,519,758 | $ | 1,382,345 | $ | 1,026,021 | $ | 790,885 | $ | 320,507 | ||||||||||||||||||||||||||||||||||||
| LEGEND | DESCRIPTION | |
| A | Fair Value as determined by the Board of Directors, using the distribution dictated by the Merger Agreement with Check Point Software Technologies, Ltd. | |
| B | March 31, 2006 valuation performed by independent third-party valuation specialist, and includes 165,332 shares originally priced at $8.36 (post-split) that were cancelled and reissued at $5.26 (post-split), resulting in incremental compensation expense of $62,000 that is being recognized over the remaining vesting term. | |
| C | Valuation determined by 3rd party accredited investor who had not previously invested in the Company. | |
| D | July 2006 fair value performed by management, with a perspective of unrelated third-party valuation specialist | |
| E | August 25, 2006 valuation performed by unrelated third-party valuation specialist | |
| F | Valuations performed by management, updating the August 25th data from the independent 3rd party valuation specialist for actual Q3 results and adjusting the weighting of M&A v. IPO scenario for the Market Approach | |
| G | As a result of the reverse stock split the preferred stock conversion ratio was adjusted to .61576. | |