Support.com 2014 Annual Report Download - page 56

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Table of Contents
Stock Options
The following tables represent stock option activity for the years ended December 31, 2014, 2013, and 2012:
Number of
Shares
Weighted
Average
Exercise Price
per Share
Weighted
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic Value
(in thousands)
Outstanding options at December 31, 2011 10,789,590 $ 2.99 4.25 $ 8
Granted 875,150 $ 3.09
Exercised (1,375,431) $ 2.44
Forfeited (759,712) $ 3.39
Outstanding options at December 31, 2012 9,529,597 $ 3.05 3.63 $ 12,595
Granted 557,750 $ 4.74
Exercised (4,266,423) $ 2.52
Forfeited (438,533) $ 4.27
Outstanding options at December 31, 2013 5,382,391 $ 3.55 3.66 $ 4,039
Granted 1,492,750 $ 2.23
Exercised (376,804) $ 2.32
Forfeited (2,982,300) $ 3.50
Outstanding options at December 31, 2014 3,516,037 $ 3.16 6.28 $ 3
Options vested and expected to vest 3,336,740 $ 3.18 6.09 $ 3
Exercisable at December 31, 2014 1,674,147 $ 3.62 3.62 $ -
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders had they all exercised their options on December 31, 2014, 2013,
and 2012. This amount will change based on the fair market value of our stock. The total aggregate intrinsic value of options exercised under our stock option plans was $71,000, $8.9 million, and $2.4 million for the
years ended December 31, 2014, 2013, and 2012, respectively. The total fair value of options vested during 2014, 2013, and 2012 was $845,000, $1.7 million, and $2.8 million, respectively.
During the second quarter of 2014, the Company’s Compensation Committee approved the grant of (i) 750,000 market-based stock options to the Company’s new President and Chief Executive Officer, and (ii)
112,500 market-based stock options to certain key executives. The market-based stock options shall only be exercisable, to the extent vested, upon the Company’s achievement of specified stock price thresholds. In
accordance with ASC 718, the Company estimated the grant-date fair values of its market-based stock options as $1.27 - $1.33 per share with derived service periods of 1.87 - 4.52 years using a Monte-Carlo
simulation model.
On February 11, 2014, Joshua Pickus, the Company’s former President and Chief Executive Officer submitted his written resignation effective April 1, 2014. Also effective April 1, 2014, Mr. Pickus resigned as a
member of the Company’s Board of Directors. In connection with Mr. Pickus’ resignation the Compensation Committee of the Board of Directors, considering all relevant factors and the best interest of the Company's
stockholders, approved the extension of the post-termination exercise period for the vested portions of each of Mr. Pickus’ outstanding stock option grants from 90 days following his termination to December 31,
2014, in order to permit the orderly exercise and disposition of shares under his vested grants prior to their expiration. No other terms of the stock options were modified. As part of the modification of the stock
options, the Company recorded an incremental stock-based compensation expense of approximately $193,000 in the three months ended March 31, 2014.
On December 13, 2012, the Compensation Committee of the Board of Directors extended the term of 700,000 stock options granted to the Company’s Chief Executive Officer and President. The stock options
were granted on April 6, 2006, and were originally scheduled to expire on April 6, 2013. After the extension, the stock options will expire on April 6, 2016. The stock options were granted under the Company’s
Amended and Restated 1998 Stock Option Plan. At the time of the extension, the exercise price of the stock options exceeded the current fair market value of the Company’s common shares. No other terms of the
stock options were modified. As part of the modification of the stock options, the Company recorded incremental stock-based compensation expense of approximately $810,000 in the fourth quarter of 2012.
At December 31, 2014, there was $1.8 million of unrecognized compensation cost related to stock options which is expected to be recognized over a weighted average period of 2.03 years.
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