On March 31, 2003, we renegotiated the terms of the Centra notes. Pursuant to the renegotiated terms, we have extended the maturity date of the notes from December 1, 2004 to April 1, 2006, reduced the interest rate from 12.0% per annum to 6.0% per annum, and fixed the conversion price at $1.00, subject to adjustment in accordance with anti-dilution protections. The previous conversion price was based on the trading price of our common stock. Immediately upon completion of this restructuring, PVC Funding Partners acquired slightly more than 50% of the face value of the notes from Centra. The remaining interest is held by Centra.
As of March 27, 2002, we retired a subordinated note payable to New England Financial, including accrued interest, totaling approximately $2.5 million, by issuing 274,369 shares of our common stock, based on a per share price of $5.54, which was the closing price of our common stock one day immediately prior to the retirement date of the note. New England Financial subsequently assigned the 274,369 shares to New England Financial Distributors. We have agreed to register these shares.
Aspects of our business depend upon our ability to store, retrieve, process, and manage data and to maintain and upgrade our data processing capabilities. If our data processing capabilities were to be interrupted for any extended period of time, or if we were to lose stored data, experience failures in our backup operations, or experience programming errors, or if other computer problems were to arise, we could lose customers and revenue. We expect that our future growth will depend on our ability to process and manage claims data more efficiently, and to provide more meaningful healthcare information to our customers, than our competitors. We may not be able to efficiently upgrade our systems to meet future demands, and we may not be able to develop, license, or otherwise acquire software to address these market demands as well or as readily as our competitors.
As our competitors' healthcare information systems increase in complexity and overall capabilities, and the functionality of these systems further overlap, we could be subject to claims that our technology infringes on the proprietary rights of third parties. These claims, even if without merit, could subject us to costly litigation and could require the resources, time, and attention of our technical, legal, and management personnel to defend. The failure to develop non-infringing technology or trade names, or to obtain a license on commercially reasonable terms, could adversely affect our operations and revenues.
As a participant in the healthcare industry, we are affected by or may be affected by regulations related to privacy of patient information, provider contracting, claims adjudication procedures, licensing, and the Internet.
. failure to meet our product development and sales milestones; . failure to comply with our debt and Series C convertible preferred stock covenants; . demand for our common stock; . technological innovations by us or our competitors or in competing technologies; . new product announcements by us or by our competitors; . timeliness in introduction of new products; . announcements by us or our competitors of significant contracts, acquisitions, partnerships, joint ventures, or capital commitments; . failure to successfully build our new outsourcing business units; . operating revenues and operating results failing to meet the expectations of securities analysts or investors in any quarter; . announcements by third parties of significant claims or proceedings against us; . disclosure of unsuccessful results in our efforts to expand our ability to market, sell and provide our services or in our ability to enhance our existing products or develop new products; . changes in financial estimates by securities analysts; . investor perception of our industry or its prospects; and . general technological or economic trends.
The financial statements required by this item are listed in Item 14(a)(1) and are submitted at the end of this Annual Report on Form 10-K.