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Table of Contents
NetSpend Holdings, Inc.
Notes to Consolidated Financial Statements (Continued)
December 31, 2011, 2010 and 2009
NOTE 12: STOCKHOLDERS' EQUITY (Continued)
A summary of warrant activity for the twelve months ended December 31, 2011, 2010 and 2009 is as follows:
The fair values of warrants issued during the year ended December 31, 2009 were valued at the grant date using the Black-Scholes option
pricing model using the following average assumptions for the year ended December 31, 2009.
NOTE 13: SHARE BASED PAYMENT
Stock Incentive Plans
In October 2010, the Company adopted a new equity incentive plan, the Amended and Restated NetSpend Holdings, Inc. 2004 Equity
Incentive Plan (the "2004 Plan"), which amended and replaced the Company's prior option plan. As of December 31, 2011, the Company had
reserved 25,104,980 shares of its common stock for issuance under the 2004 Plan. The number of shares reserved for issuance under the 2004
Plan will increase annually by a number of shares equal to the lesser of (1) 3% of the total outstanding shares of the Company's capital stock as
of immediately prior to the increase, (2) 3,000,000 or (3) such lesser amount as is determined by the Company's board of directors.
85
Number
of Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term (Years)
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
—
$
—
—
Granted
—
—
Exercised
—
—
Warrants outstanding December 31, 2011
—
$
—
—
Exercisable and outstanding December 31,
2011
—
$
—
—
2009
Expected volatility
60
%
Expected dividend yield
—
Expected term
5 years
Risk free rate
1.7
%
Weighted average fair value per warrant at issuance date
$
1.80