Travelzoo 2004 Annual Report Download - page 63

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TRAVELZOO INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
The following table presents the activity related to stock options granted by the Company for the years
ended December 31, 2002, 2003, and 2004.
Year Ended December 31,
2004 2003 2002
Outstanding at beginning of year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,401,938 2,401,938 2,368,349
Granted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì 35,000
ExercisedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (173,589) Ì Ì
Cancelled ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì (1,411)
Outstanding at end of year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,228,349 2,401,938 2,401,938
Exercisable at end of yearÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,228,349 2,401,938 2,401,938
Weighted-average fair value of options granted during the
year ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì $ 0.06
The following table summarizes information about stock options outstanding as of December 31, 2004:
Shares Weighted-Average
Outstanding and Remaining Weighted-Average
Exercise Price Exercisable Contractual Life Exercise Price
$1.00 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,158,349 7.08 years $1.00
$2.00 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 60,000 7.83 years 2.00
$3.00 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,000 8.25 years 3.00
2,228,349 7.11 years 1.04
In October 2003, the Company completed an underwritten secondary oÅering of 402,500 shares of
common stock sold by the Company's Chief Executive OÇcer and principal stockholder. The oÅering was
intended primarily to allow the Company to satisfy the requirement for listing on the NASDAQ SmallCap
Market that the Company have 300 round lot holders. The costs of the oÅering of $328,000 were paid for by
the Company and were included in general and administrative expenses.
In October 2004, the Company completed a private placement oÅering of 750,000 newly-issued shares of
common stock for gross proceeds of $30.0 million to a group of investors. The proceeds from the oÅering are
intended to be used for general corporate purposes, including new product development and marketing
expenditures, and potential acquisitions or strategic investments.
(6) SigniÑcant Customer Information and Segment Reporting
SFAS No. 131, Disclosure about Segments of an Enterprise and Related Information, establishes
standards for the reporting by business enterprises of information about operating segments, products and
services, geographic areas, and major customers. The method for determining what information to report is
based on the way that management organizes the operating segments within a company for making
operational decisions and assessing performance. As of December 31, 2004, the Company had one operating
segment: online advertising.
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