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Table of Contents
At December 31, 2014, there was $3.7 million of unrecognized compensation cost related to RSUs which is expected to be recognized over a weighted average period of 2.54 years.
Stock Repurchase Program
On April 27, 2005, our Board of Directors authorized the repurchase of up to 2,000,000 outstanding shares of our common stock. As of December 31, 2014, the maximum number of shares remaining that can
be repurchased under this program was 1,807,402. The Company does not intend to repurchase shares without a pre-approval from its Board of Directors.
Repurchase of Shares
On February 19, 2013, the Company entered into an agreement with Joshua Pickus, the Company’s former President and Chief Executive Officer, pursuant to which Mr. Pickus sold directly to the Company on
that day 1,000,000 shares of its common stock acquired by him in a same-day exercise of fully vested options which were due to expire at the end of their seven-year term on April 6, 2013. Under the agreement, the
purchase price per share was established as an amount equal to the lesser of (a) the closing price of the Company’s common stock in regular trading hours on the day of the sale as reported by Nasdaq less 5%, or
(b) the thirty-day simple moving average price of the Company’s common stock on the day of the sale. This formula produced a purchase price per share of $4.114, less the aggregate strike price due on exercise of
the options underlying the repurchased shares of $2.32 per share, which then resulted in a net cash outlay by the Company to acquire the shares of approximately $1.8 million (or $1.794 per share). The agreement
was approved by the independent members of the Company’s Board of Directors. The share repurchase amounted to $4.1 million and is classified under treasury stock within stockholders’ equity of the consolidated
balance sheets.
Note 9. Income Taxes
The components of our gain (loss) before income taxes are as follows (in thousands):
Year Ended December 31,
2014 2013 2012
United States $ (3,412) $ 10,513 $ (5,975)
Foreign 556 608 630
Total $ (2,856) $ 11,121 $ (5,345)
Gain from discontinued operations, before income taxes — — $ 18
Gain (loss) from continuing operations, before income taxes $ (2,856) $ 11,121 $ (5,327)
The provision for income taxes from continuing operations consisted of the following (in thousands):
Year Ended December 31,
Current: 2014 2013 2012
Federal $ — $ — $ —
State 34 132 54
Foreign 380 221 94
Total Current $ 414 $ 353 $ 148
Deferred
Federal $ 265 $ 265 $ 266
State 19 24 28
Foreign 42 130 (234)
Total Deferred 326 419 60
Total provision for income taxes $ 740 $ 772 $ 208
The provision for income taxes is comprised of estimates of current taxes due in domestic and foreign jurisdictions.
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