v2.4.0.8
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2014
Stock-Based Compensation  
Stock-Based Compensation

 

 

11.Stock-Based Compensation

 

The Company maintains two share-based employee compensation plans: the 2008 Stock Incentive Plan (the “2008 Plan”) and the 2014 Equity Incentive Plan (the “2014 Plan”). The 2008 Plan provided for the grant of incentive stock options to the Company’s employees, and for the grant of nonstatutory stock options, restricted stock awards and deferred stock awards to the Company’s employees, directors and consultants. The 2014 Plan provides for the grant of incentive stock options to the Company’s employees, and for the grant of nonstatutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights, performance stock awards and other forms of stock compensation to the Company’s employees, including officers, consultants and directors. The 2014 Plan also provides for the grant of performance cash awards to the Company’s eligible employees, consultants and directors. Shares reserved but unissued under the 2008 Plan are included as shares reserved for issuance under the 2014 Plan. No further options or stock awards can be granted under the 2008 Plan, and all outstanding stock awards granted under the 2008 Plan will continue to be governed by their existing terms.

 

The Company’s stock-based compensation expense included in the unaudited condensed consolidated statements of operations is as follows:

                                                                                                                                                                                         

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2013

 

2014

 

2013

 

2014

 

 

 

(in thousands)

 

Servicing and support

 

$
79 

 

$
436 

 

$
272 

 

$
1,050 

 

Technology and content development

 
39 

 
269 

 
102 

 
578 

 

Program marketing and sales

 
41 

 
191 

 
131 

 
512 

 

General and administrative

 
480 

 
1,351 

 
1,202 

 
3,346 

 

Total stock-based compensation expense

 

$
639 

 

$
2,247 

 

$
1,707 

 

$
5,486 

 

 

A total of 2,800,000 shares of the Company’s common stock are reserved for issuance pursuant to the 2014 Plan. In addition, the shares reserved for issuance under the 2014 Plan will include (a) those shares reserved but unissued under the 2008 Plan, and (b) shares returned to the 2008 Plan as the result of expiration or termination of awards (provided that the maximum number of shares that may be added to the 2014 Plan pursuant to (a) and (b) is 5,943,348 shares). The number of shares of the Company’s common stock that may be issued under the 2014 Plan will automatically increase on January 1 of each year, for a period of ten years, from January 1, 2015 continuing through January 1, 2024, by 5% of the total number of shares of the Company’s common stock outstanding on December 31st of the preceding calendar year, or a lesser number of shares as may be determined by the Company’s board of directors.

 

The following is a summary of the option activity:

                                                                                                                                                                                      

 

 

Number of
Options

 

Weighted-Average
Exercise Price per
Share

 

Weighted-Average
Remaining
Contractual Term
(in years)

 

Aggregate
Intrinsic
Value
(in thousands)

 

Outstanding balance at December 31, 2013

 
5,883,885

 

$
3.53

 
7.45

 

$
36,884

 

Granted

 
1,314,970

 
11.22

 
9.06

 

 

 

Exercised

 
(552,137

)
2.21

 
5.45

 

 

 

Forfeited

 
(364,061

)
3.53

 

 

 

 

 

Expired

 

—

 

—

 

 

 

 

 

Outstanding balance at September 30, 2014

 
6,282,657

 
5.23

 
7.48

 
64,938

 

Exercisable at September 30, 2014

 
3,212,353

 
2.65

 
6.28

 
41,563

 

Vested and expected to vest at September 30, 2014

 
6,030,608

 
5.12

 
7.43

 
63,172

 

 

Total compensation cost related to the nonvested options not yet recognized as of September 30, 2014 was $10.8 million and will be recognized over a weighted average period of approximately 2.6 years.

 

The aggregate intrinsic value of the employee options exercised during the nine months ended September 30, 2014 was $7.4 million.