Rent the Runway Inc

12. Redeemable Preferred Stock

During the year ended January 31, 2022, the Company sold 1,437,541 shares of Series G redeemable preferred stock in exchange for $21.2 million. Upon consummation of the IPO, the Company accreted the carrying value of $409.3 million of the redeemable preferred stock to the liquidation value of $414.9 million and the Company’s 32,575,462 outstanding shares of redeemable preferred stock were converted into 1,628,773 shares of the Company’s Class A common stock. The accretion to liquidation value did not have a net impact on the Company’s additional paid-in capital. There was no outstanding redeemable preferred stock as of January 31, 2024 and 2023. Refer to Note 2, Summary of Significant Accounting Policies for discussion of the Company’s Reverse Stock Split.

Redemption

The redeemable preferred stock was redeemable upon a liquidation event, such as voluntary or involuntary liquidation, dissolution, or winding up of the Company, which is outside of the Company’s control. Accordingly, these shares were considered contingently redeemable and were classified outside of stockholders’ deficit as mezzanine equity on the Consolidated Balance Sheets. The Company accreted the carrying values of the redeemable preferred stock to their liquidation values upon the Company’s IPO.