TeleNav 2014 Annual Report Download - page 103

Table of Contents
8. Stockholders’ equity
Undesignated preferred stock
We are authorized to issue 50,000,000 shares of undesignated preferred stock, par value $0.001 per share. The undesignated preferred
stock may be issued from time to time at the discretion of our board of directors. As of June 30, 2014 and 2013 , no shares of undesignated
preferred stock were issued or outstanding.
Common stock
We are authorized to issue 600,000,000 shares of $0.001 par value stock. The holders of each share of common stock have the right to one
vote.
Stock repurchase program
On November 15, 2010, October 27, 2011, October 23, 2012 and March 18, 2013, our Board of Directors authorized repurchase programs
for the repurchase of up to $20.0 million , $20.0 million , $20.0 million and $10.0 million , respectively, of our shares of common stock through
open market purchases.
Under the November 15, 2010 program, which we completed in the quarter ended September 30, 2011, we utilized $20.0 million of cash
to repurchase 2,037,743 shares of our common stock at an average purchase price of $9.79 per share. Under the October 27, 2011 program,
which we completed in the quarter ended December 31, 2012, we utilized $8.8 million of cash to repurchase 1,293,755 shares of our common
stock at an average purchase price of $6.82 per share. Under the October 23, 2012 program, which we completed in the quarter ended March 31,
2013, we utilized $20.0 million of cash to repurchase 2,625,415 shares of our common stock at an average purchase price of $7.62 per share.
Under the March 18, 2013 program, which we completed in the quarter ended March 31, 2014, we utilized $10.0 million of cash to repurchase
1,674,584 shares of our common stock at an average purchase price of $5.97 per share.
The repurchased shares are retired and designated as authorized but unissued shares. The timing and amount of repurchase transactions
under our stock repurchase programs depends on market conditions and other considerations. We use the par value method of accounting for our
stock repurchases. Under the par value method, common stock is first charged with the par value of the shares involved. The excess of the cost
of shares acquired over the par value is allocated to additional paid-in capital, or APIC, based on an estimated average sales price per issued
share with the excess amounts charged to retained earnings. As a result of our stock repurchases during fiscal 2014, we reduced common stock
and APIC by an aggregate of $4.1 million and charged $3.8 million to retained earnings. As a result of our stock repurchases during fiscal 2013,
we reduced common stock and APIC by an aggregate of $11.8 million and charged $14.5 million to retained earnings. As a result of our stock
repurchases during fiscal 2012, we reduced common stock and APIC by an aggregate of $4.6 million and charged $8.0 million to retained
earnings.
Stock plans
Under our 1999 Stock Option Plan, or 1999 Plan, 2002 Executive Stock Option Plan, or 2002 Plan, 2009 Equity Incentive Plan, or 2009
Plan, and 2011 Stock Option and Grant Plan, or 2011 Plan, eligible employees, directors, and consultants are able to participate in our future
performance through awards of nonqualified stock options, incentive stock options and restricted stock units, or RSUs, through the receipt of
such awards as authorized by our board of directors. Incentive stock options may be granted only to employees to purchase our common stock at
prices equal to or greater than the fair market value on the date of grant. Nonqualified stock options to purchase our common stock may be
granted at prices not less than 85% of the fair market value on the date of grant. Options generally vest over a four -year period beginning from
the date of grant and generally expire 10 years from the date of grant. RSUs generally vest annually over a four -year period beginning from the
date of grant. Prior to our IPO, we granted options outside of our stock option plans with terms substantially similar to the terms of options
granted under our plans.
As of June 30, 2014 , we had reserved 7,598,362
shares of common stock for issuance under our stock option and equity plans. On the first
day of each fiscal year, the number of shares available and reserved for issuance under the 2009 Plan will be annually increased by an amount
equal to the lesser of 1,666,666 shares of common stock; 4% of the outstanding shares of our common stock as of the last day of our
immediately preceding fiscal year; or an amount determined by our board of directors.
The information below regarding stock option and RSUs activity, stock options and RSUs outstanding and stock compensation expense
includes both continuing and discontinued operations.
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