Stamps.com 2001 Annual Report Download - page 64

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STAMPS.COM INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
1,229,551 shares based on 40,985,054 shares outstanding on the last day of December 1999. The automatic increase on January 1, 2001 was
1,489,627 based upon 49,654,227 shares outstanding on the last day of 2000.
In no event will this annual increase exceed 1,564,715 shares. In addition, no participant in the 1999 Plan may be granted stock options or
direct stock issuances for more than 1,125,000 shares of common stock in total in any calendar year.
Options granted under the 1999 Plan generally vest 25% per year, and the Board of Directors has the discretion with respect to vesting periods
applicable to a particular grant. Each option granted has a 10 year contractual life. During 2001, 2000 and 1999, the Company issued options to
purchase 1,557,434, 9,839,198 and 5,290,800 shares of common stock, respectively, at prices which included approximately $96,100,
$24,662,000 and $11,995,000 of a compensation element in 2001, 2000 and 1999, respectively. The total of deferred compensation is being
recognized as expense over the vesting periods of the related options and has been presented as a reduction of stockholders' equity in the
accompanying balance sheets. The current year amortization of deferred compensation expense of $2,521,000 is included as a general and
administrative expense.
A summary of stock option activity is as follows (in thousands, except per share amounts, amounts reflect the 3/2 split from June 1999):
Options
Outstanding
Weighted
----------- Average
Number of
Exercise
Options Price
-----------
--------
Beginning Balance at January 1, 1999............. 1,937 $ .07
Granted.......................................... 5,291 10.74
Forfeited........................................ (49) 2.65
Exercised........................................ (91) .15
Increase in available options.................... -- --
------
Balance at December 31, 1999..................... 7,088 8.17
Granted.......................................... 8,854 10.23
Forfeited........................................ (4,450) 13.40
Exercised........................................ (2,255) 0.59
Increase in available options.................... -- --
Issued in iShip transaction...................... 985 4.98
------
Balance at December 31, 2000..................... 10,222 8.81
Granted.......................................... 1,557 2.42
Forfeited........................................ (7,682) 8.92
Exercised........................................ (945) 0.90
Increase in available options.................... -- --
------
Balance at December 31, 2001..................... 3,152 $ 7.76
======
The weighted-average fair value of stock grants for the years ended December 31, 2001, 2000 and 1999 were approximately $1.86, $9.91 and
$9.35, respectively. Fair value is calculated using the Black-Scholes valuation method.
F-19
2002. EDGAR Online, Inc.