Incredimail 2008 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2008 Incredimail annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 122

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122

F - 25
normal trading restrictions. During 2008, the Company repurchased 300,564 of its Ordinary shares for a total consideration of
$882,000 which were recorded as treasury shares, at cost as part of shareholders
’
equity.
d.
Share option plans:
In 2003, the Company adopted a share option plan (“the 2003 Option Plan”). Under the 2003 Option Plan, employees, officers and
non-
employees may be granted options to acquire Ordinary shares. Pursuant to the 2003 Option Plan, the Company has reserved for
issuance a total of 2,368,000 Ordinary shares. As of December 31, 2008, 911,195 options were still available for future grant under
the 2003 Option Plan.
Options granted under the 2003 Plan vested over three to four years from the grant date. The options expire no later than five years
from the date of grant.
The Company recognizes compensation costs using the straight line attribution method, but not less than the grant date fair value of
the options vested at the balance
-
sheet date.
INCREDIMAIL LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10:
-
SHAREHOLDERS
’
EQUITY (Cont.)
A summary of the activity in the share options granted to employees and directors as of December 31, 2008 and related information
is as follows:
Number of
options
Weighted
average
exercise
price
Weighted average
remaining
contractual term
Aggregate
intrinsic
value
(Years)
U.S.
dollars
in thousands
Outstanding at January 1, 2008
1,109,320
$
4.93
*)
3.58
$
2,128
Granted
412,500
$
3.35
Exercised
(95,780
)
$
1.72
Expired
(122,000
)
$
4.92
Forfeited
(12,000
)
$
4.50
Outstanding at December 31, 2008
1,292,040
$
4.08
3.28
$
62
Exercisable at December 31, 2008
529,340
$
4.41
2.40
$
61
*)
After adjustment with respect to re-pricing, for further information see below.
The weighted-average grant-date fair value of options granted during the years 2006, 2007 and 2008 was $2.57, $2.46 and $1.32,
respectively.
As of December 31, 2008, the total compensation cost related to options granted to employees, not yet recognized amounted to
$1,157,000. The cost is expected to be recognized over a weighted average period of 2.43 years.
Aggregate intrinsic value of options exercised in 2006, 2007 and 2008 amounted to $39,000, $444,673 and $76,000, respectively.
In February 2008, the Company’s Board of Directors resolved to re-price 516,100 options which were previously granted to the
Company’s employees to the fair market value as of that date. The Company accounted for the re-pricing as a modification in
accordance with SFAS 123R and recorded an additional compensation expense, in the amount of $309,000 which will be
recognized over the remaining vesting period or immediately for vested options.
NOTE 11:
-
SUPPLEMENTARY DATA ON SELECTED CONSOLIDATED STATEMENTS OF OPERATIONS
a.
Goodwill impairment and other charges: