Support.com 2014 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 2014 Support.com 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 80

  • 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

Table of Contents
Pursuant to approval by the Company's Compensation Committee, the Company issued 425,000 stock options to certain key executives on February 10, 2015. These stock options were not included in the
computation of the basic and diluted earnings (loss) per share for the year ended December 31, 2014 because they were not outstanding during this period.
The following table sets forth the computation of basic and diluted net earnings (loss) per share (in thousands, except per share amounts):
Year Ended December 31,
2014 2013 2012
Net income (loss) $ (3,483) $ 10,383 $ (5,424)
Basic:
Weighted-average shares of common stock outstanding 53,834 51,553 48,798
Shares used in computing basic net earnings (loss) per share 53,834 51,553 48,798
Basic net earnings (loss) per share $ (0.06) $ 0.20 $ (0.11)
Diluted:
Weighted-average shares of common stock outstanding 53,834 51,553 48,798
Add: Common equivalent shares outstanding — 2,272 —
Shares used in computing diluted net earnings (loss) per share 53,834 53,825 48,798
Diluted net earnings (loss) per share $ (0.06) $ 0.19 $ (0.11)
Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss, which relate entirely to accumulated foreign currency translation losses associated with our foreign subsidiaries and unrealized (losses) on
investments, consisted of the following (in thousands):
Foreign
Currency
Translation
Losses
Unrealized
Losses on
Investments Total
Balance as of December 31, 2012 $ (1,501 ) $ — $ (1,501 )
Current-period other comprehensive loss (357 ) (16 ) (373 )
Balance as of December 31, 2013 (1,858 ) (16 ) (1,874 )
Current-period other comprehensive loss (117 ) (37 ) (154 )
Balance as of December 31, 2014 $ (1,975 ) $ (53 ) $ (2,028 )
Realized gains/losses on investments reclassified from accumulated other comprehensive loss are reported as interest income and other, net in our consolidated statements of operations.
The amounts noted in the consolidated statements of comprehensive loss are shown before taking into account the related income tax impact. The income tax effect allocated to each component of other
comprehensive income for each of the periods presented is not significant.
Stock-Based Compensation
We apply the provisions of ASC 718, Compensation - Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based payment awards, including grants of
stock and options to purchase stock, made to employees and directors based on estimated fair values.
Determining Fair Value of Share-Based Payments
Valuation and Attribution Method: Stock-based compensation expense for service-based stock options and employee stock purchase plan (“ESPP”) is estimated at the date of grant based on the fair value of
awards using the Black-Scholes-Merton option pricing model. Stock-based compensation expense for market-based stock options is estimated at the date of grant based on the fair value of awards using the Monte-
Carlo simulation model. Stock-based compensation expense for RSUs is estimated at the date of grant based on the number of shares granted and the quoted price of the Company’s common stock on the grant
date. Stock options vest on a graded schedule; however we recognize the expense over the requisite service period based on the straight-line method for service-based stock options and the accelerated method for
market-based stock options, which is generally four years for stock options, three years or four years for RSUs and six months for ESPP, net of estimated forfeitures. These limitations require that on any date the
compensation cost recognized is at least equal to the portion of the grant-date fair value of the award that is vested at that date. The Company estimates pre-vesting forfeitures at the time of grant by analyzing
historical data and revises those estimates in subsequent periods if actual forfeitures differ from those estimates. The total expense recognized over the vesting period will only be for those awards that ultimately vest.
Risk-free Interest Rate: We base our risk-free interest rate on the yield currently available on U.S. Treasury zero coupon issues for the expected term of the stock options.
47
EDGAR Stream is a copyright of Issuer Direct Corporation, all rights reserved.