| Summary of Option Activity Under Stock Option Plans |
Stock options may be granted as incentive or nonqualified options; however, no incentive stock options have been granted to date. The exercise price of options is at least equal to the market price of the stock as of the date of grant. Options may vest over various periods but typically vest on a quarterly basis over three years. Options expire after five years, ten years or within a specified time from termination of employment, if earlier. The Company issues new shares of common stock upon the exercise of stock options. The following table summarizes option activity:
|
Shares |
|
|
Weighted
Average
Exercise Price
Per Share |
|
|
Weighted Average
Remaining
Contractual Term
(Years) |
|
|
Aggregate Intrinsic
Value(1) |
|
Options outstanding, January 1, 2011 |
|
4,130,000 |
|
|
$ |
3.60 |
|
|
|
|
|
|
|
|
|
Granted at fair market value |
|
1,151,000 |
|
|
$ |
4.11 |
|
|
|
|
|
|
|
|
|
Granted at above fair market value |
|
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
Exercised |
|
(657,000 |
) |
|
$ |
2.08 |
|
|
|
|
|
|
|
|
|
Forfeited, cancelled, or expired |
|
(766,000 |
) |
|
$ |
4.92 |
|
|
|
|
|
|
|
|
|
Options outstanding, December 31, 2011 |
|
3,858,000 |
|
|
$ |
3.75 |
|
|
|
|
|
|
|
|
|
Granted at fair market value |
|
614,000 |
|
|
$ |
2.61 |
|
|
|
|
|
|
|
|
|
Granted at above fair market value |
|
568,000 |
|
|
$ |
2.45 |
|
|
|
|
|
|
|
|
|
Exercised |
|
(214,000 |
) |
|
$ |
2.12 |
|
|
|
|
|
|
|
|
|
Forfeited, cancelled, or expired |
|
(966,000 |
) |
|
$ |
3.63 |
|
|
|
|
|
|
|
|
|
Options outstanding, December 31, 2012 |
|
3,860,000 |
|
|
$ |
3.48 |
|
|
|
|
|
|
|
|
|
Granted at fair market value |
|
711,000 |
|
|
$ |
3.79 |
|
|
|
|
|
|
|
|
|
Granted at above fair market value |
|
978,000 |
|
|
$ |
3.72 |
|
|
|
|
|
|
|
|
|
Exercised |
|
(343,000 |
) |
|
$ |
2.07 |
|
|
|
|
|
|
|
|
|
Forfeited, cancelled, or expired |
|
(765,000 |
) |
|
$ |
4.23 |
|
|
|
|
|
|
|
|
|
Options outstanding, December 31, 2013 |
|
4,441,000 |
|
|
$ |
3.51 |
|
|
|
3.83 |
|
|
$ |
1,574,000 |
|
Options exercisable, December 31, 2013 |
|
2,688,000 |
|
|
$ |
3.51 |
|
|
|
3.17 |
|
|
$ |
1,343,000 |
|
Vested options expired during the twelve months ended December 31, 2013 |
|
90,000 |
|
|
$ |
11.24 |
|
|
|
|
|
|
$ |
— |
|
(1) |
The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of a grant. |
|
| Additional Information of Option Activity |
The following table summarizes additional information for those options that are outstanding and exercisable as of December 31, 2013:
|
|
Options Outstanding |
|
|
Exercisable |
|
Range of Exercise Prices |
|
Number
of Shares |
|
|
Weighted
Average
Exercise Price |
|
|
Weighted
Average
Remaining
Life (Years) |
|
|
Number
of Shares |
|
|
Weighted
Average
Exercise Price |
|
$ 0.82 — $1.99 |
|
|
445,000 |
|
|
$ |
1.51 |
|
|
|
5.08 |
|
|
|
340,000 |
|
|
$ |
1.42 |
|
$ 2.00 — $2.99 |
|
|
2,113,000 |
|
|
$ |
2.37 |
|
|
|
3.21 |
|
|
|
1,365,000 |
|
|
$ |
2.20 |
|
$ 3.00 — $3.99 |
|
|
121,000 |
|
|
$ |
3.19 |
|
|
|
3.09 |
|
|
|
72,000 |
|
|
$ |
3.25 |
|
$ 4.00 — $4.99 |
|
|
889,000 |
|
|
$ |
4.18 |
|
|
|
5.34 |
|
|
|
316,000 |
|
|
$ |
4.20 |
|
$ 5.00 — $5.99 |
|
|
562,000 |
|
|
$ |
5.20 |
|
|
|
4.08 |
|
|
|
286,000 |
|
|
$ |
5.34 |
|
$ 6.00 — $9.99 |
|
|
201,000 |
|
|
$ |
7.48 |
|
|
|
2.17 |
|
|
|
199,000 |
|
|
$ |
7.49 |
|
$ 10.00 — $13.99 |
|
|
61,000 |
|
|
$ |
11.19 |
|
|
|
1.36 |
|
|
|
61,000 |
|
|
$ |
11.19 |
|
$ 14.00 — $18.51 |
|
|
49,000 |
|
|
$ |
14.15 |
|
|
|
0.43 |
|
|
|
49,000 |
|
|
$ |
14.15 |
|
Total |
|
|
4,441,000 |
|
|
$ |
3.51 |
|
|
|
3.83 |
|
|
|
2,688,000 |
|
|
$ |
3.51 |
|
|
| Cash Proceeds, Along With Fair Value Disclosures Related to Grants, Exercises, and Vesting Options |
Cash proceeds, along with fair value disclosures related to grants, exercises, and vesting options, are as follows for the years ended December 31 (in thousands, except per share amounts):
|
Years Ended
December 31, |
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
Proceeds from stock options exercised |
$ |
707 |
|
|
$ |
455 |
|
|
$ |
1,244 |
|
Tax benefit related to stock options exercised(1) |
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Intrinsic value of stock options exercised(2) |
$ |
860 |
|
|
$ |
91 |
|
|
$ |
1,328 |
|
Weighted-average fair value of options granted |
$ |
1.82 |
|
|
$ |
1.39 |
|
|
$ |
2.97 |
|
Total fair value of shares vested during the year |
$ |
1,544 |
|
|
$ |
1,737 |
|
|
$ |
1,259 |
|
(1) |
Excess tax benefits received related to stock option exercises are presented as financing cash inflows. Currently the Company does not receive a tax benefit related to the exercise of stock options due to its net operating losses. |
(2) |
The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant. |
|