Stock incentive plans

6 Months Ended

Jun. 30, 2013

Stock incentive plans

Stock incentive plans

11. 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 June 30, 2013, 7,108,013 shares of common stock are reserved for issuance.

No further awards will be made under our Amended and Restated 2001 Stock Incentive Plan (“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 EndedJune 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Network operations	$	231	$	105	$	397	$	111
Development and technology	142		222		99		421
Selling and marketing	340		191		458		401
General and administrative	532		434		893		1,012
Total stock-based compensation	$	1,245	$	952	$	1,847	$	1,945

A summary of the stock option activity 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	887		$	6.88
Exercised	(243	)	$	1.20
Canceled/forfeited	(532	)	$	11.24
Outstanding at June 30, 2013	5,157		$	6.33	6.72	$	10,082
Vested and expected to vest at June 30, 2013	4,960		$	6.25	6.62	$	10,073
Exercisable at June 30, 2013	2,726		$	4.01	4.75	$	9,895

The weighted average assumptions used for newly issued stock option grants for the six months ended June 30, 2013 were an expected term of 6.25 years, an expected volatility of 49.43%, a risk free rate of return of 1.07% and no expected dividends.

During the six months ended June 30, 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 is as follows:

	Number of Shares (000’s)		Weighted Average Grant-Date Fair Value
Nonvested at December 31, 2012	—		$	—
Granted	771		$	6.18
Vested	—		$	—
Forfeited	(7	)	$	6.05
Nonvested at June 30, 2013	764		$	6.18