Stock incentive plans

3 Months Ended

Mar. 31, 2013

Stock incentive plans

Stock incentive plans

10. Stock incentive plans

In March 2011, our board of directors approved the 2011 Equity Incentive Plan (“2011 Plan”).  The 2011 Plan provides for the grant of incentive and nonstatuatory stock options, stock appreciation rights, restricted shares of our common stock, stock units, and performance cash awards.  As of January 1 of each year, the number of shares of common stock reserved for issuance under our stock incentive plan shall automatically be increased by a number equal to the lesser of (a) 4.5% of the total number of shares of common stock then outstanding, (b) 3,000,000 shares of common stock and (c) as determined by our board of directors.  As of March 31, 2013, 7,108,013 shares of common stock are reserved for issuance.

No further awards will be made under our 2001 Plan, and it will be terminated.  Options outstanding under the 2001 Plan will continue to be governed by their existing terms.

We recognized stock-based compensation expense as follows:

	Three Months Ended March 31,
	2013			2012
Network operations	$	166		$	5
Development and technology	(43		)	200
Selling and marketing	118			210
General and administrative	361			578
Total stock-based compensation	$	602		$	993

A summary of the stock option activity under the Plan is as follows:

	Number of Options (000’s)		Weighted Average Exercise Price		Weighted- Average Remaining Contract Life (years)	Aggregate Intrinsic Value
Outstanding at December 31, 2012	5,045		$	6.50	6.44	$	14,742
Granted	466		$	6.61
Exercised	(167	)	$	1.28
Cancelled/forfeited	(407	)	$	11.71
Outstanding at March 31, 2013	4,937		$	6.26	6.59	$	8,960
Vested and expected to vest at March 31, 2013	4,750		$	6.16	6.49	$	8,956
Exercisable at March 31, 2013	2,711		$	3.74	4.71	$	8,788

The significant assumptions used for newly issued stock option grants for the three months ended March 31, 2013 were an expected term of 6.25 years, an expected volatility of 49.2%, a risk free interest rate of 1.0% and no expected dividends.

In March 2013, we issued restricted stock units (“RSU”) to executive and non-executive personnel. The RSUs generally vest over a two year period with 50% of the RSUs vesting when the individual completes 12 months of continuous service and the remaining 50% vesting on a quarterly basis thereafter. A summary of the RSU activity under the 2011 Plan is as follows:

	Number of Shares (000’s)	Weighted Average Grant-Date Fair Value
Nonvested at December 31, 2012	—	$	—
Granted	605	6.05
Vested	—	—
Forfeited	—	—
Nonvested at March 31, 2013	605	$	6.05