This excerpt taken from the CNQR 10-Q filed May 7, 2009.
Note 5. Investments
In January 2009, we made an investment of $4.0 million, including transaction costs, in RideCharge, Inc. (RideCharge), a leading provider of ground travel booking that allows business travelers to book, pay and get reimbursed for ground transportation. Our investment consists of 3.2 million shares of preferred stock and warrants to purchase an additional 1.6 million shares of preferred stock at $1.25 per share.
Because our preferred stock in RideCharge does not meet all the characteristics of in-substance common stock, we have accounted for our investment under the cost method with net accumulated earnings recorded only to the extent of distributed dividends. We have not accounted for the warrants separately because they do not qualify as free standing derivatives. We have reported our investment in RideCharge in Deferred Costs and Other Long-term Assets on our balance sheet.