|
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 nonstatutory 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 September 30, 2011, options to purchase 2,224,835 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 |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
(in thousands) |
|
|
Network operations |
|
$ |
186 |
|
$ |
22 |
|
$ |
297 |
|
$ |
106 |
|
|
Development and technology |
|
228 |
|
28 |
|
388 |
|
91 |
|
|
Selling and marketing |
|
264 |
|
41 |
|
438 |
|
130 |
|
|
General and administrative |
|
694 |
|
115 |
|
1,152 |
|
357 |
|
|
Total stock-based compensation expense |
|
$ |
1,372 |
|
$ |
206 |
|
$ |
2,275 |
|
$ |
684 |
|
The following weighted average assumptions were used for stock options granted during these periods:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend yield |
|
None |
|
None |
|
None |
|
None |
|
|
Volatility rate |
|
49.9 |
% |
66.7 |
% |
49.8 |
% |
67.6 |
% |
|
Expected term |
|
5.7 |
|
6.0 |
|
6.4 |
|
6.1 |
|
|
Risk free interest rate |
|
1.6 |
% |
2.0 |
% |
2.4 |
% |
2.5 |
% |
A summary of the stock option activity under the two plans 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 |
|
2,329 |
|
$ |
13.15 |
|
9.6 |
|
|
|
|
Exercised |
|
(600 |
) |
$ |
1.00 |
|
3.6 |
|
|
|
|
Cancelled/forfeited |
|
(42 |
) |
$ |
5.98 |
|
|
|
|
|
|
Outstanding at September 30, 2011 |
|
6,975 |
|
$ |
5.22 |
|
7.1 |
|
$ |
27,311 |
|
|
Vested and expected to vest at September 30, 2011 |
|
6,840 |
|
$ |
5.13 |
|
7.0 |
|
$ |
27,098 |
|
|
Exercisable at September 30, 2011 |
|
3,876 |
|
$ |
1.28 |
|
5.4 |
|
$ |
22,771 |
| |