Classmates.com 2003 Annual Report Download - page 67

The number of option shares exercisable at June 30, 2003, 2002 and 2001 were 10.3 million, 8.0 million and 0.9 million, respectively with
weighted average exercise prices of and $10.61, $9.53 and $14.87, respectively.
No stock-based charges were recognized during the six months ended December 31, 2003. The following table summarizes the stock-
based charges that have been included in the following captions for each of the periods presented (in thousands):
Acceleration of Stock Options and Restricted Stock Awards
In July 2000, certain employees and officers were granted restricted stock awards totaling approximately 0.5 million shares of common
stock. The shares of common stock subject to such awards vested ratably over twelve quarterly installments beginning in August 2000. In
connection with the award, the Company recorded deferred stock-based charges of approximately $7.8 million. In October 2001, the Board of
Directors authorized that the remaining unvested restricted stock awards immediately become fully vested. As a result, approximately
0.3 million shares of restricted common stock became vested, and the remaining balance of $1.5 million in deferred stock-based charges was
expensed.
F-32
In March 2002, the Board of Directors authorized the acceleration of approximately 0.8 million previously unvested stock options and
restricted stock awards for six employees, including four officers. In connection with this acceleration, the Company recorded a stock-based
charge of $1.3 million.
In April 2002, approximately 0.1 million shares of restricted common stock became vested in connection with the sale of Simpli (see
Note 2). In connection with this acceleration, the Company recorded a stock
-based charge of $0.6 million.
Employee Stock Purchase Plan
The Company has a 2001 Employee Stock Purchase Plan ("ESPP"), which expires in the year 2011, and under which an aggregate of
3.0 million shares of the Company's common stock have been authorized and reserved for issuance. Under the ESPP, each eligible employee
may authorize payroll deductions of up to 15% of their compensation to purchase shares of common stock on two "purchase dates" each year at
a purchase price per share equal to 85% of the lower of (i) the closing selling price per share of common stock on the employee's entry date into
the two
-
year offering period in which the purchase date occurs or (ii) the closing selling price per share on the purchase date. Each offering
Prices
Number
of Shares
Average
Remaining
Contractual
Life
Average
Exercise
Price
Number
of Shares
Average
Exercise
Price
Number
of Shares
Average
Exercise
Price
$
0.11
-
$
1.27
3,744
7.7
$
1.22
2,785
$
1.22
237
$
1.23
1.53
-
3.33
1,377
7.0
3.00
1,138
3.08
—
—
3.43
-
5.77
2,842
8.1
5.38
1,981
5.56
—
—
5.97
-
9.19
349
8.4
7.89
112
7.85
—
—
9.34
-
13.17
368
7.1
11.40
290
11.32
—
—
13.33
-
18.33
3,281
9.1
17.83
2,230
17.85
—
—
18.40
-
30.00
481
7.6
23.99
253
26.00
—
—
30.11
-
43.33
298
5.9
37.97
282
36.08
—
—
44.59
-
118.54
467
6.0
65.90
432
66.31
—
—
$
0.11
-
$118.54
13,207
7.9
$
10.83
9,503
$
11.35
237
$
1.23
Year Ended June 30,
2003 2002 2001
Operating expenses:
Cost of billable services
$
8
$
99
$
29
Cost of free services
—
60
353
Sales and marketing
20
548
5,442
Product development
6
1,785
6,267
General and administrative
73
3,925
7,196
Total stock-based charges $
107
$
6,417
$
19,287