Note 10: Capital Stock

On the Effective Date, all shares of common and preferred equity securities previously issued by WMI were cancelled and extinguished. As of the Effective Date, and pursuant to WMIHC’s Amended and Restated Articles of Incorporation, WMIHC is authorized to issue up to 500,000,000 shares of common stock and up to 5,000,000 shares of blank check preferred stock, each with a par value of $0.00001 per share. 200,000,000 shares of common stock were issued by WMIHC pursuant to the Court approved Plan and in reliance on Section 1145 of the Bankruptcy Code on the Effective Date.

WMIHC issued restricted share grants to members of the board of directors totaling zero and $550 thousand of aggregate intrinsic value during the three months ended June 30, 2013 and year ended December 31, 2012, respectively. The restricted shares vest over a three year period and the resulting unamortized value related to the unvested restricted share grant totals $315 thousand and $407 thousand at June 30, 2013 and December 31, 2012, respectively. The unamortized value of $315 thousand at June 30, 2013 will be amortized over the next one year and nine months. Net stock-based compensation totaled $92 thousand and zero for the six months ended June 30, 2013 and 2012, respectively. The share grants were issued at the fair market value determined to be the trading price at the close of business on October 18, 2012, the date the grants were approved by the board of directors.

A summary of WMIHC’s restricted share award activity for the six months ended June 30, 2013 and year ended December 31, 2012 is presented below:


	Number of Restricted Stock Awards Outstanding		Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value (in thousands)
Outstanding—January 1, 2012		—	$	—	$	—
Restricted stock awards granted		1,156,078		0.4761		550
Restricted stock awards released or forfeited		—		—		—

Outstanding—December 31, 2012		1,156,078		0.4761		550
Restricted stock awards granted		—		—		—
Restricted stock awards released or forfeited		—		—		—

Outstanding—June 30, 2013		1,156,078	$	0.4761	$	550

WMIHC has issued the total number of shares subject to the restricted stock grants; however, until vested they are subject to repurchase. The restricted shares vest 1/3 per year over a three year period annually on March 19th. On June 30, 2013, 770,714 shares remained subject to repurchase. On March 19, 2013, 385,364 shares vested. As of December 31, 2012, all 1,156,078 of the shares were subject to repurchase. WMIHC has the right, but not the obligation, to repurchase any unvested (but issued) shares of common stock at $0.0001 per share upon the termination of service in the case of a director.

A summary of the Company’s restricted shares issued and subject to repurchase as of the six months ended June 30, 2013 and year ended December 31, 2012, respectively, is presented below:


Shares subject to repurchase—January 1, 2012			—
Shares issued subject to vesting during the period			1,156,078
Unvested shares repurchased			—
Shares vested during the period			—

Unvested shares—December 31, 2012			1,156,078
Shares issued subject to vesting during the period			—
Unvested shares repurchased			—
Shares vested during the period			385,364

Unvested shares—June 30, 2013			770,714

As of June 30, 2013, and December 31, 2012, 201,156,078 shares of WMIHC’s common stock were issued and outstanding. No shares of WMIHC’s preferred stock are issued or outstanding. See Note 13: Net (loss) Income Per Common Share for further information.