[Akarnani]

I have no knowledge of the deal and am not involved in anyway; this sounds like the 409A for the common stock came down not the preferred valuation. Valuations can't be moved without someone buying stock at a lower price to make the lower price "real". If there was no investment, they didn't Lower the valuation. 409As are different, happen every year to enable common equity grants to the team. What is probably happening is the team's option grants are at a lower price because the inputs to the 409A formulae (including how the stock market is doing) have come down.