Fourth Quarter 2011 Compared to Fourth Quarter 2010. If the Platform apps that currently generate revenue fail to grow or maintain their users and engagement, if Platform developers do not continue to introduce new apps that attract users and create engagement, if Platform developers reduce their advertising on Facebook, if we fail to maintain good relationships with Platform developers or attract new developers, or if Platform apps outside of social games do not gain popularity and generate significant revenue, our financial performance and ability to grow revenue could be adversely affected. In addition, from time to time we may introduce new products, including in areas where we currently do not compete, which could increase our exposure to patent and other intellectual property claims from competitors and non-practicing entities. The growth and expansion of our business and products create significant challenges for our management, operational, and financial resources, including managing multiple relations with users, advertisers, Platform developers, and other third parties. We have mandated the use of our Payments infrastructure for game apps on Facebook, and fees related to Payments are generated almost exclusively from games. The following table illustrates this per share dilution.
Zuckerberg as of December 31, 2011, options to purchase 124,848,924 shares of Class B common stock were vested as of December 31, 2011 and the Class B common stock underlying such options will be eligible for sale approximately six months after the date of this prospectus. We intend to use the net proceeds to us from our initial public offering for working capital and other general corporate purposes; however, we do not currently have any specific uses of the net proceeds planned. We may not be successful in developing relationships with key participants in the mobile industry or in developing products that operate effectively with these technologies, systems, networks, or standards. In addition, spammers attempt to use our products to send targeted and untargeted spam messages to users, which may embarrass or annoy users and make Facebook less user-friendly. We will not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders. Registration Statement on Form S-1 As filed with the Securities and Exchange Commission on February 1, 2012 Registration No.
Currently, substantially all of the Payments transactions between our users and Platform developers are for virtual goods used in social games. Our marketing and sales expenses also include user-, developer-, and advertiser-facing marketing and promotional expenditures. Although we believe that we have adequately reserved for our uncertain tax positions, we can provide no assurance that the final tax outcome of these matters will not be materially different. Our business, financial condition, results of operations, and prospects may have changed since that date. If some or all of these events were to occur, our operations may be interrupted and our ability to fund our operations or obligations, as well as our business, financial results, and financial condition, could be adversely affected.
You should take whatever time is necessary to understand the information. The above questions, if not adequately addressed, can sink your chances of raising money. Although we believe that there are significant long-term benefits to Facebook resulting from increased engagement on Facebook-integrated websites, these benefits may not offset the possible loss of advertising revenue, in which case our business could be harmed. Your prospectus, whether for a private placement or public offering, should continuously flow, and hopefully at a smooth pace. The dissertation prospectus must be independently reviewed by all Supervisory Committee members who are to be on the Dissertation Reading Committee.
The third copy is forwarded to a member of the Steering Committee assigned to review the evaluations and approve the dissertation proposal on behalf of the Social Welfare Faculty. The risks and uncertainties described below are not the only ones we face. If we default on these leasing and credit obligations, our leasing partners and lenders may, among other things: require repayment of any outstanding lease obligations or amounts drawn on our credit facility; terminate our leasing arrangements and credit facility; terminate our access to the leased data centers we utilize; stop delivery of ordered equipment; sell or require us to return our leased equipment; or require us to pay significant damages. You should make sure that you understand the information in the prospectus. The chair and student together will review the evaluations and use the appropriate section on the chair's evaluation form to outline a plan for how any concerns raised in the evaluations will be addressed and how changes will be monitored. Because we have hundreds of millions of users, the plaintiffs in class action cases filed against us typically claim enormous monetary damages even if the alleged per-user harm is small or non-existent.
Key elements of our strategy are: Expand Our Global User Community. The principal purposes of our initial public offering are to create a public market for our Class A common stock and thereby enable future access to the public equity markets by us and our employees, obtain additional capital, and facilitate an orderly distribution of shares for the selling stockholders. We provide an online payments infrastructure that enables Platform developers to receive payments from our users in an easy-to-use, secure, and trusted environment. Our Data Use Policy governs the use of information that users have chosen to share using Facebook and how that information may be used by third parties. Financials This section of the prospectus summarizes the past, present and future financial position of the company. Accordingly, if users continue to increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, our revenue and financial results may be negatively affected.
As another example, applications on certain mobile devices may automatically contact our servers for regular updates with no user action involved, and this activity may cause our system to count the user associated with such a device as an active user of Facebook. Consider how much experience in a similar type of business the management brings to the company, and how much time each member of management will devote to the company. Accordingly, changes in exchange rates, and in particular a strengthening of the U. Our revenue is the net amount of the transaction representing our processing fee for the transaction. Our employee headcount and the scope and complexity of our business have increased significantly, with the number of full-time employees increasing from 2,127 as of December 31, 2010, to 3,200 as of December 31, 2011, and we expect headcount growth to continue for the foreseeable future. As a result, advertisers are able to differentiate their products and complement their marketing messages with trusted recommendations from users friends.
We also believe that giving people control over what they share is a fundamental principle of this rewiring. Following Supervisory Committee approval of the prospectus, the Social Work PhD Assistant Director officially establishes the Reading Committee with the Graduate School through MyGrad. You must give very detailed information in this chapter. Zuckerberg retains a significant portion of his holdings of Class B common stock for an extended period of time, he could, in the future, continue to control a majority of the combined voting power of our Class A common stock and Class B common stock. We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. Investors want to see the current market, and if the company will be sustainable in a future market.
Our mapping of the Social Graph enables Facebook and Platform developers to build more engaging user experiences that are based on these connections. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses, and related disclosures. Our Strategy We are in the early days of pursuing our mission to make the world more open and connected. Timeline and Resource Considerations This section provides a timeline for the completion of all phases of the dissertation and the resource requirements of each phase, thereby providing a series of benchmarks for both the candidate and committee to assess the progress of the dissertation research. Simplicity In addition to showing you can turn a profit, you will want to keep your prospectus flowing, no matter the length. This prospectus is not an offer to sell these securities and neither we nor the selling stockholders are soliciting offers to buy these securities in any state where the offer or sale is not permitted.
The information in this prospectus is not complete and may be changed. We have a saying: Move fast and break things. We currently require Payments integration in games on Facebook, and we may seek to extend the use of Payments to other types of apps in the future. The Proposing Release notes that Form N-6, adopted in 2002, is the most recently adopted of the Forms. After our initial public offering, we will have outstanding shares of our Class A common stock and shares of our Class B common stock, based on the number of shares outstanding as of December 31, 2011.