Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges and Preferred Share Dividends
(in thousands)
Fiscal Year Ended December 31, 2010 (X) | Fiscal Year Ended December 31, 2011 | Fiscal Year Ended December 31, 2012 | Fiscal Year Ended December 31, 2013 | Three Months Ended March 31, 2014 | ||||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest related to the Credit Facility | $ | — | $ | — | $ | — | $ | 432 | $ | 328 | ||||||||||
Interest portion of rental expense* | 3 | 28 | 53 | 60 | 37 | |||||||||||||||
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Total fixed charges | $ | 3 | $ | 28 | $ | 53 | $ | 492 | $ | 365 | ||||||||||
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Earnings: | ||||||||||||||||||||
Pre-tax loss from continuing operations | $ | (6,834 | ) | $ | (3,464 | ) | $ | (11,636 | ) | $ | (19,742 | ) | $ | (9,779 | ) | |||||
Fixed charges | 3 | 28 | 53 | 492 | 365 | |||||||||||||||
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Total earnings | $ | (6,831 | ) | $ | (3,436 | ) | $ | (11,583 | ) | $ | (19,250 | ) | $ | (9,414 | ) | |||||
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Preferred dividend requirement | $ | 9 | $ | 1,178 | $ | 2,035 | $ | — | $ | — | ||||||||||
Combined fixed charges and preferred dividends | $ | 12 | $ | 1,206 | $ | 2,088 | $ | 492 | $ | 365 | ||||||||||
Ratio of earnings to combined fixed charges and preferred dividends | (a | ) | (b | ) | (c | ) | (d | ) | (e | ) |
* | Represents estimated interest associated with certain facility, equipment and vehicle leases (at an assumed rate of 33% of total rent expense for facility and equipment leases, which management believes is a reasonable approximation of the interest factor). |
(X) | From inception (December 1, 2010) through December 31, 2010. |
(a) | Earnings for the period ended December 31, 2010 were inadequate to cover combined fixed charges and preferred dividends. The coverage deficiency was approximately $6.8 million. |
(b) | Earnings in fiscal year ended December 31, 2011 were inadequate to cover combined fixed charges and preferred dividends. The coverage deficiency was approximately $4.6 million. |
(c) | Earnings in fiscal year ended December 31¸ 2012 were inadequate to cover combined fixed charges and preferred dividends. The coverage deficiency was approximately $13.7 million. |
(d) | Earnings in the fiscal year ended December 31, 2013 were inadequate to cover combined fixed charges and preferred dividends. The coverage deficiency was approximately $19.7 million. |
(e) | Earnings in the three months ended March 31, 2014 were inadequate to cover combined fixed charges and preferred dividends. The coverage deficiency was approximately $9.8 million. |