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LEAPFROG ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except share, per share and percent data)
A summary of the activity under the stock option plans is as follows.
Optioned Class A Shares
Reserved but
Unoptioned
Shares
Number
of
Shares
Price
per
Share
Weighted-
Average
Exercise
Price
Balances, December 31, 1999 ....................... 1,222,788 3,277,212 $ 2.37-5.00 $ 2.68
Increase in options reserved ......................... 5,500,000 — —
Optionsgranted ................................... (3,516,500) 3,516,500 5.00-7.50 5.21
Options exercised .................................. — (1,380,676) 2.37 2.37
Options canceled .................................. 831,826 (831,826) 2.37-5.00 4.06
Balances, December 31, 2000 ....................... 4,038,114 4,581,210 2.37-7.50 4.51
Optionsgranted ................................... (3,722,750) 3,722,750 5.00-7.50 5.00
Options exercised .................................. — (173,741) 2.37-5.00 4.72
Options canceled .................................. 862,108 (862,108) 2.37-5.00 4.99
Balances, December 31, 2001 ....................... 1,177,472 7,268,111 2.37-7.50 4.72
Increase in options reserved ......................... 7,250,000 —
Optionsgranted ................................... (4,041,580) 4,041,580 5.00-19.71 10.41
Options exercised .................................. — (529,261) 2.37-10.00 3.99
Options canceled .................................. 583,377 (583,377) 2.37-19.71 5.32
Balances, December 31, 2002 ....................... 4,969,269 10,197,053 $ 2.37-19.71 $ 6.96
The following table summarizes information concerning outstanding and exercisable options as of
December 31, 2002:
Class A Options Outstanding Class A Options Exercisable
Range of
Exercise
Price
Number
Outstanding
Weighted-
Average
Remaining
Contractual
Life (Years)
Weighted-
Average
Exercise
Price
Number
Exercisable
Weighted-
Average
Exercise
Price
$2.37 897,535 4.19 $ 2.37 894,191 $ 2.37
5.00 5,699,670 8.11 5.00 3,600,006 5.00
6.25 200,000 7.00 6.25 83,325 6.25
7.50 253,333 7.44 7.50 97,769 7.50
10.00 1,392,185 9.08 10.00 290,889 10.00
12.50 1,562,830 9.20 12.50 190,119 12.50
19.71 191,500 9.81 19.71 1,353 19.71
$2.37-19.71 10,197,053 8.06 $ 6.96 5,157,652 $ 5.17
During the years ended December 31, 2002, 2001 and 2000, the Company granted options to consultants to
purchase 124,580, 165,250 and 40,000 shares of Class A common stock at average exercise prices of $9.89,
$5.00 and $5.00 per share, respectively. These options were granted in exchange for consulting services
performed. The Company determined the fair value of these options using the Black-Scholes valuation model.
Compensation expense related to options to consultants was $349, $420 and $100 for the years ended December
31, 2002, 2001 and 2000, respectively. Included in the 124,580 options granted to consultants in 2002 are 40,000
options issued in connection with the conversion of stock appreciation rights that were originally issued in prior
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