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Stock incentive plans
 3 Months Ended
Mar. 31, 2013
Stock incentive plans  
Stock incentive plans

10. Stock incentive plans

 

In March 2011, our board of directors approved the 2011 Equity Incentive Plan (“2011 Plan”).  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.  As of March 31, 2013, 7,108,013 shares of common stock are reserved for issuance.

 

No further awards will be made under our 2001 Plan, and it will be terminated.  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
March 31,

 

 

 

2013

 

2012

 

Network operations

 

$

166

 

$

5

 

Development and technology

 

(43

)

200

 

Selling and marketing

 

118

 

210

 

General and administrative

 

361

 

578

 

Total stock-based compensation

 

$

602

 

$

993

 

 

A summary of the stock option activity under the Plan is as follows:

 

 

 

Number of
Options (000’s)

 

Weighted
Average
Exercise
Price

 

Weighted-
Average
Remaining
Contract
Life (years)

 

Aggregate
Intrinsic
Value

 

Outstanding at December 31, 2012

 

5,045

 

$

6.50

 

6.44

 

$

14,742

 

Granted

 

466

 

$

6.61

 

 

 

 

 

Exercised

 

(167

)

$

1.28

 

 

 

 

 

Cancelled/forfeited

 

(407

)

$

11.71

 

 

 

 

 

Outstanding at March 31, 2013

 

4,937

 

$

6.26

 

6.59

 

$

8,960

 

Vested and expected to vest at March 31, 2013

 

4,750

 

$

6.16

 

6.49

 

$

8,956

 

Exercisable at March 31, 2013

 

2,711

 

$

3.74

 

4.71

 

$

8,788

 

 

The significant assumptions used for newly issued stock option grants for the three months ended March 31, 2013 were an expected term of 6.25 years, an expected volatility of 49.2%, a risk free interest rate of 1.0% and no expected dividends.

 

In March 2013, we issued restricted stock units (“RSU”) to executive and non-executive personnel. The RSUs generally vest over a two year period with 50% of the RSUs vesting when the individual completes 12 months of continuous service and the remaining 50% vesting on a quarterly basis thereafter. A summary of the RSU activity under the 2011 Plan is as follows:

 

 

 

Number of Shares
(000’s)

 

Weighted Average
Grant-Date Fair
Value

 

Nonvested at December 31, 2012

 

—

 

$

—

 

Granted

 

605

 

6.05

 

Vested

 

—

 

—

 

Forfeited

 

—

 

—

 

Nonvested at March 31, 2013

 

605

 

$

6.05