Incredimail 2009 Annual Report Download - page 104

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INCREDIMAIL LTD .
AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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, 2009, 574,887 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.
A summary of the activity in the share options granted to employees and directors for the year ended December 31,
2009 and related information is as follows:
The weighted-average grant-date fair value of options granted during the years 2007, 2008 and 2009
was $2.46, $1.32 and $1.68, respectively.
As of December 31, 2009, the total compensation cost related to options granted to employees, not yet recognized,
amounted to $1,186,242. The cost is expected to be recognized over a weighted average period of 2.17 years.
Aggregate intrinsic value of options exercised in 2007, 2008 and 2009 amounted to $444,673, $76,000 and $281,000
respectively.
In February 2008, the Company's Board of Directors resolved to reprice 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 repricing
as a modification in accordance with ASC 718 and recorded an additional compensation expense, in the amount of
$309,000 which are recognized over the vesting period, or immediately for vested options.
On February 3, 2006, the Company affected an Initial Public Offering ("IPO") of its Ordinary shares on the Nasdaq
Capital Market. On the closing date of the IPO, the Company granted to its underwriters an option to purchase
175,000 Ordinary shares at a price per share of $9.375. The option shall expire five years following the grant date.
NOTE
10
:
-
SHAREHOLDERS' EQUITY (Cont.)
d.
Share option plans:
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, 2009
1,292,040
$
4.08
3.28
$
62
Granted
425,000
$
7.11
Exercised
(302,117
)
$
3.26
Cancelled
(71,342
)
$
3.49
Forfeited
(21,150
)
$
2.31
Outstanding at December 31, 2009
1,332,431
$
5.30
3.20
$
6,185
Exercisable at December 31, 2009
496,631
$
5.28
2.04
$
2,335
e.
Options granted to underwriter:
F
-
23