|
9. Stock incentive plans
In March, 2011, our board of directors approved the 2011 Equity Incentive Plan (“2011 Plan”) under which 5,511,288 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, the number of shares of common stock reserved for issuance under our stock incentive 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.
No further awards will be made under our Amended and Restated 2001Stock Incentive Plan (“2001 Plan”), which terminated pursuant to its term. Options outstanding under the 2001 Plan will continue to be governed by their existing terms.
The weighted average assumptions used for newly issued stock option grants for the six months ended June 30, 2012 were an expected term of 6.1 years, an expected volatility of 49.9%, a risk free rate of return of 1.1% and no expected dividends.
We recognized stock-based compensation expense as follows:
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Network operations |
|
$ |
105 |
|
$ |
92 |
|
$ |
111 |
|
$ |
110 |
|
|
Development and technology |
|
222 |
|
125 |
|
421 |
|
161 |
|
|
Selling and marketing |
|
191 |
|
134 |
|
401 |
|
174 |
|
|
General and administrative |
|
434 |
|
344 |
|
1,012 |
|
456 |
|
|
Total stock-based compensation |
|
$ |
952 |
|
$ |
695 |
|
$ |
1,945 |
|
$ |
901 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at December 31, 2011 |
|
6,601 |
|
$ |
5.50 |
|
7.0 |
|
$ |
30,996 |
|
|
Granted |
|
379 |
|
$ |
9.60 |
|
|
|
|
|
|
Exercised |
|
(1,407 |
) |
$ |
1.34 |
|
|
|
|
|
|
Cancelled/forfeited |
|
(192 |
) |
$ |
10.89 |
|
|
|
|
|
|
Outstanding at June 30, 2012 |
|
5,381 |
|
$ |
6.68 |
|
6.96 |
|
$ |
30,344 |
|
|
Vested and expected to vest at June 30, 2012 |
|
5,219 |
|
$ |
6.49 |
|
6.91 |
|
$ |
30,268 |
|
|
Exercisable at June 30, 2012 |
|
2,831 |
|
$ |
2.08 |
|
5.26 |
|
$ |
27,322 |
|
|