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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2008, 2009 and 2010
NOTE 11: STOCKHOLDERS' EQUITY (Continued)
Warrants
In 2008, the Company issued 22,346 warrants to purchase shares of common stock to a former executive based on a separation agreement
at an exercise price of $1.70 per share and issued 20,000 warrants to purchase shares of common stock to one of its distribution partners at an
exercise price of $1.50 per share. During the year ended December 31, 2008, 23,846 warrants were exercised resulting in additional paid-in
capital of less than $0.1 million.
In 2009, the Company issued 20,000 warrants to purchase shares of common stock to one of its distribution partners at an exercise price of
$1.50 per share. No warrants were exercised in 2009.
In 2010, the Company did not issue any warrants to purchase shares of common stock. Prior to October 2010, 15,382 warrants were
exercised, resulting in additional paid-in capital of less than $0.1 million. In conjunction with the Company's initial public offering in October
2010, 696,270 warrants were exercised, of which 102,065 were retained by the Company as consideration for the exercise price, resulting in net
shares issued in connection with warrant exercises of 594,205. As such, the exercise of warrants during the year ended December 31, 2010
resulted in additional paid-in capital to the Company of less than $0.1 million.
A summary of warrant activity for the twelve months ended December 31, 2008, 2009 and 2010 is as follows:
87
Number
of Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
Warrants outstanding
December 31, 2007
688,183
$
1.69
6.3
Granted
42,346
1.61
Exercised
(23,846
)
1.53
Warrants outstanding
December 31, 2008
706,683
$
1.69
5.2
Granted
20,000
1.50
Exercised
—
—
Warrants outstanding
December 31, 2009
726,683
$
1.69
4.3
Granted
—
—
Cancelled
(15,031
)
1.69
Exercised
(711,652
)
1.69
Warrants outstanding
December 31, 2010
—
$
—
—
Exercisable and
outstanding
December 31, 2010
—
$
—
—