|
10. Stock incentive plans:
In March, 2011, our board of directors approved the 2011 Plan under which 4,000,000 shares of common stock are reserved for issuance. The 2011 Plan provides for the grant of incentive and nonstatuatory stock options, stock appreciation rights, restricted shares of our common stock, stock units, and performance cash awards. As of January 1 of each year commencing in 2012, the number of shares of common stock reserved for issuance under the 2011 Plan shall automatically be increased by a number equal to the lesser of (a) 4.5% of the total number of shares of common stock then outstanding, (b) 3,000,000 shares of common stock and (c) as determined by our board of directors. As of June 30, 2011, options to purchase 2,163,809 shares of common stock have been granted under the 2011 Plan.
No further awards will be made under our 2001 Plan, and it was terminated following the completion of our IPO (Note 1). Options outstanding under the 2001 Plan will continue to be governed by their existing terms.
We recognized stock-based compensation expense as follows:
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
(in thousands) |
|
|
Network operations |
|
$ |
92 |
|
$ |
41 |
|
$ |
110 |
|
$ |
84 |
|
|
Development and technology |
|
125 |
|
32 |
|
161 |
|
62 |
|
|
Selling and Marketing |
|
134 |
|
45 |
|
174 |
|
88 |
|
|
General and administrative |
|
344 |
|
122 |
|
456 |
|
242 |
|
|
Total stock-based compensation expense |
|
$ |
695 |
|
$ |
240 |
|
$ |
901 |
|
$ |
476 |
|
The stock compensation expense above for the three and six months ended June 30, 2011 includes a $29,000 adjustment for an expense which was capitalized in offering costs as a reduction of additional paid in capital.
The following weighted average assumptions were used for stock options granted during these periods:
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend yield |
|
None |
|
None |
|
None |
|
None |
|
|
Volatility rate |
|
49.8 |
% |
68.4 |
% |
49.8 |
% |
68.4 |
% |
|
Expected term |
|
6.5 |
|
6.2 |
|
6.4 |
|
6.2 |
|
|
Risk free interest rate |
|
2.5 |
% |
3.0 |
% |
2.5 |
% |
3.0 |
% |
A summary of the stock option activity under the Plan is as follows:
|
|
|
Number of
Options |
|
Weighted
Average
Exercise
Price |
|
Weighted-
Average
Remaining
Contract
Life (years) |
|
Aggregate
Intrinsic
Value |
|
|
|
|
(in thousands, except years) |
|
|
Outstanding at December 31, 2010 |
|
5,288 |
|
$ |
1.25 |
|
6.3 |
|
$ |
38,279 |
|
|
Granted |
|
102 |
|
$ |
8.50 |
|
9.8 |
|
|
|
|
Exercised |
|
(87 |
) |
$ |
1.25 |
|
6.1 |
|
|
|
|
Cancelled/forfeited |
|
(10 |
) |
$ |
1.75 |
|
|
|
|
|
|
Outstanding at March 31, 2011 |
|
5,293 |
|
$ |
1.40 |
|
6.1 |
|
$ |
37,587 |
|
|
Granted |
|
2,164 |
|
$ |
13.50 |
|
9.8 |
|
|
|
|
Exercised |
|
(477 |
) |
$ |
0.94 |
|
3.1 |
|
$ |
5,890 |
|
|
Cancelled/forfeited |
|
— |
|
|
|
|
|
|
|
|
Outstanding at June 30, 2011 |
|
6,980 |
|
$ |
5.18 |
|
7.3 |
|
$ |
28,843 |
|
|
Vested & expected to vest at June 30, 2011 |
|
6,839 |
|
$ |
5.09 |
|
7.3 |
|
$ |
28,579 |
|
|
Exercisable at June 30, 2011 |
|
3,785 |
|
$ |
1.27 |
|
5.6 |
|
$ |
23,264 |
| |