Broad-based Weighted Average

Broad-based Weighted Average is an anti-dilution method that adjusts the price per share of the preferred stock of a prior investor due to the issuance of new preferred shares. The prior investor’s preferred stock is adjusted at a weighted average rate of the previously issued stock and the new preferred shares. This method uses all common stock outstanding on a fully diluted basis (including all convertible securities, warrants and options) in determining the new weighted average price.