Support.com 2009 Annual Report Download - page 69

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Table of Contents
SUPPORT.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table represents stock option activity for the years ended December 31, 2007, 2008, and 2009:
Number of
Shares
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
(in ‘000’s)
Outstanding options at December 31, 2006 13,580,874 $ 5.33 6.44 $ 13,048
Granted 3,291,254 $ 4.89
Exercised (1,292,953) $ 3.33
Forfeited (2,840,410) $ 7.36
Outstanding options at December 31, 2007 12,738,765 $ 4.98 5.82 $ 3,377
Granted 4,100,988 $ 3.02
Exercised (2,333) $ 0.10
Forfeited (3,203,840) $ 4.87
Outstanding options at December 31, 2008 13,633,580 $ 4.41 4.54 $ 243
Granted 8,301,338 $ 2.36
Exercised (244,770) $ 1.47
Forfeited (11,011,091) $ 4.60
Outstanding options at December 31, 2009 10,679,057 $ 2.70 5.08 $ 2,559
Options vested and expected to vest 10,435,875 $ 2.70 5.06 $ 2,491
Exercisable at December 31, 2009 2,430,306 $ 3.65 4.09 $ 282
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had they all
exercised their options on December 31, 2009, 2008, and 2007. This amount will change based on the fair market value of our stock. The total aggregate intrinsic
value of options exercised under our stock option plans was $561,000, $8,000 and $7.4 million for the years ended December 31, 2009, 2008 and 2007,
respectively. The total fair value of options vested during 2009, 2008 and 2007 was $3.8 million, $4.9 million and $4.6 million, respectively.
At December 31, 2009, there was $15.1 million of unrecognized compensation cost related to existing options outstanding which is expected to be
recognized over a weighted average period of 3.0 years.
Employee Stock Purchase Plan
In the second quarter of 2009 we sold our Enterprise business to Consona. A sale of this nature qualified as the sale of “substantially all the assets of the
business,” and according to the terms of the ESPP plan document such a sale automatically terminates the ESPP. As a result of the automatic termination of the
ESPP, we reversed all ESPP expenses related to the purchase period as of the time of the termination and refunded all amounts to the employees.
In the first quarter of 2009, prior to the sale of the Enterprise business, there was a purchase made and 74,041 shares were issued through the Purchase
Plan. For the years ended December 31, 2008 and 2007, there were 127,301 and 131,436 shares, respectively, issued through the Purchase Plan.
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Source: Support.com, Inc., 10-K, March 12, 2010 Powered by Morningstar® Document Research℠