RADS » Topics » Stock Options

This excerpt taken from the RADS 10-Q filed May 7, 2009.

Stock Options

The exercise price of each stock option equals the market price of Radiant’s common stock on the date of grant. Most options are scheduled to vest equally over a three or four-year period or when certain stock performance requirements are met. These stock performance requirements include a provision that allows for early vesting if certain stock price targets are met. The Company recognizes stock-based compensation expense using the graded vesting attribution method. Outstanding options expire no later than ten years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The weighted average assumptions used in the model for the three month periods ended March 31, 2009 and 2008 are outlined in the following table:

 

     Three Months Ended
     March 31, 2009    March 31, 2008

Expected volatility

           69%            50%

Expected life (in years)

           3-4            3-4

Expected dividend yield

           0.00%            0.00%

Risk-free interest rate

           1.57%            2.14%

The computation of the expected volatility assumption used in the Black-Scholes-Merton calculations for new grants is based on a combination of historical and implied volatilities. When establishing the expected life assumption, the Company reviews annual historical employee exercise behavior of option grants with similar vesting periods. The risk free interest rate is based on the U.S. Treasury yield curve at the grant date, using a remaining term equal to the expected life of the option. The total expenses to be recorded in future periods will depend on several variables, including the number of share-based awards that vest, pre-vesting cancellations and the fair value of those vested awards.

A summary of the changes in stock options outstanding under our equity-based compensation plans during the three months ended March 31, 2009 is presented below:

 

(in thousands, except per share data)    Number of
Shares
    Weighted-
Average
Exercise
Price
   Weighted-
Average
Remaining
Contractual
Term (in
years)
   Aggregate
Intrinsic
Value

Outstanding at December 31, 2008

   6,359     $ 10.66    3.25    $ —  

Granted

   506     $ 3.25      

Exercised

   —       $ —        

Forfeited or cancelled

   (79 )   $ 9.35      
                        

Outstanding at March 31, 2009

   6,786     $ 10.13    3.71    $ 841
                        

Vested or expected to vest at March 31, 2009

   6,673     $ 10.16    3.68    $ 780

Exercisable at March 31, 2009

   4,784     $ 10.86    3.24    $ 83

The weighted average grant-date fair value of options granted during the three-month periods ended March 31, 2009 and 2008 were $1.63 and $5.47, respectively. The total intrinsic value, the difference between the exercise price and the market price on the date of exercise, of options exercised during the three-month period ended March 31, 2008 was approximately $1.0 million. No options were exercised during the three-month period ended March 31, 2009. The total fair value of options that vested during each of the three-month periods ended March 31, 2009 and 2008 was approximately $2.1 million and $1.0 million, respectively. Radiant had approximately 2.0 million and 2.2 million unvested options outstanding as of March 31, 2009 and 2008, respectively, with a weighted-average grant-date fair value of $3.59 and $2.60, respectively. Of the 2.0 million and 2.2 million options that were unvested at March 31, 2009 and 2008, respectively, there were 0.3 million and 0.4 million options, respectively, that had a vesting period based on stock performance requirements. At March 31, 2009 and 2008, the Company recognized equity-based compensation expense equal to approximately $1.1 million and $0.8 million, respectively, related to employee and director stock options. The unvested options had a total unrecognized compensation expense as of March 31, 2009 and 2008 equal to approximately $3.1 million and $6.1 million, respectively, net of estimated forfeitures, which will be recognized over the weighted average periods of 1.3 years and 1.4 years, respectively. Cash received from stock options exercised was approximately $1.0 million during the three-month period ended March 31, 2008. No options were exercised during the three-month period ended March 31, 2009.

 

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RADIANT SYSTEMS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

(unaudited)

 

This excerpt taken from the RADS 10-Q filed Nov 7, 2008.

Stock Options

The exercise price of each stock option equals the market price of Radiant’s common stock on the date of grant. Most options are scheduled to vest equally over a three or four-year period or when certain stock performance requirements are met. These stock performance requirements include a provision that allows for early vesting if certain stock price targets are met. The Company recognizes stock-based compensation expense using the graded vesting attribution method. Outstanding options expire no later than ten years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The weighted average assumptions used in the model for the three and nine-month periods ended September 30, 2008 and 2007 are outlined in the following table:

 

     Three Months Ended
September 30,
  Nine Months Ended
September 30,
     2008   2007   2008   2007

Expected volatility

   52%   47%   50%-52%   47-49%

Expected life (in years)

   3-4   3-4   3-4   3-4

Expected dividend yield

   0.00%   0.00%   0.00%   0.00%

Risk-free interest rate

   2.6%   4.1%   2.1%-3.3%   4.1%-5.0%

The computation of the expected volatility assumption used in the Black-Scholes-Merton calculations for new grants is based on a combination of historical and implied volatilities. When establishing the expected life assumption, the Company reviews annual historical employee exercise behavior of option grants with similar vesting periods. The risk free interest rate is based on the U.S. Treasury yield curve at the grant date, using a remaining term equal to the expected life of the option. The total expenses to be recorded in future periods will depend on several variables, including the number of share-based awards that vest, pre-vesting cancellations and the fair value of those vested awards.

A summary of the changes in stock options outstanding under our equity-based compensation plans during the nine months ended September 30, 2008 is presented below:

 

(in thousands, except per share data)    Number of
Shares
    Weighted-Average
Exercise Price
   Weighted-Average
Remaining
Contractual Term
(in years)
   Aggregate
Intrinsic
Value

Outstanding at December 31, 2007

   5,798     $ 10.34    4.01    $ 42,886

Granted

   727     $ 14.22      

Exercised

   (224 )   $ 7.21      

Forfeited or cancelled

   (93 )   $ 12.33      
                        

Outstanding at September 30, 2008

   6,208     $ 10.88    3.43    $ 7,290
                        

Vested or expected to vest at September 30, 2008

   6,121     $ 10.86    3.42    $ 7,236

Exercisable at September 30, 2008

   4,383     $ 10.58    3.33    $ 5,963

The weighted average grant-date fair value of options granted during the three-month periods ended September 30, 2008 and 2007 were $3.87 and $5.35, respectively. The weighted average grant-date fair value of options granted during the nine-month periods ended September 30, 2008 and 2007 were $5.41 and $4.61, respectively. The total intrinsic value, the difference between the exercise price and the market price on the date of exercise, of options exercised during the three-month periods ended September 30, 2008 and 2007, was approximately $0.1 million and $4.1 million, respectively, and $1.5 million and $6.1 million for the nine-month periods ended September 30, 2008, and 2007, respectively. The total fair value of options that vested during each of the three-month periods ended September 30, 2008 and 2007 was approximately $0.1 million. The total fair value of options that vested during the nine-month periods ended September 30, 2008 and 2007 was approximately $0.1 million and $0.9 million, respectively. Radiant had approximately 1.8 million unvested options outstanding at both September 30, 2008 and 2007, with a weighted-average grant-date fair value of $0.58 and $3.03, respectively. Of the 1.8 million options that were unvested at September 30, 2008 and 2007, there were 0.1 million and 0.4 million options, respectively, that had a vesting period based on stock performance requirements. At September 30, 2008 and 2007, the Company recognized equity-based compensation expense equal to approximately $0.9 million related to employee and director stock options. The unvested options had a total unrecognized compensation expense as of September 30, 2008 and 2007 equal to approximately $4.0 million and $5.0 million, respectively, net of estimated forfeitures, which will be recognized over the weighted average period of 1.22 years and 1.50 years, respectively. Cash received from stock option exercises was approximately $0.1 million and $3.4 million during the three-month periods ending September 30, 2008 and 2007, respectively, and $1.6 million and $5.5 million for the nine-month periods ended September 30, 2008 and 2007, respectively.

 

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This excerpt taken from the RADS 10-Q filed May 9, 2008.

Stock Options

The exercise price of each stock option equals the market price of Radiant’s common stock on the date of grant. Most options are scheduled to vest equally over a three or four-year period or when certain stock performance requirements are met. These stock performance requirements include a provision that allows for early vesting if certain stock price targets are met. The Company recognizes stock-based compensation expense using the graded vesting attribution method. Outstanding options expire no later than ten years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average assumptions used in the model for the three-month periods ended March 31, 2008 and 2007 are outlined in the following table:

 

     Three Months
Ended
March 31, 2008
    Three Months
Ended
March 31, 2007
 

Expected volatility

   50 %   49 %

Expected life (in years)

   3-4     3-4  

Expected dividend yield

   0.00 %   0.00 %

Risk-free interest rate

   2.14 %   4.51 %

The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on a combination of historical and implied volatilities. When establishing the expected life assumption, the Company reviews annual historical employee exercise behavior of option grants with similar vesting periods. The risk free interest rate is based on the U.S. Treasury yield curve at the grant date, using a remaining term equal to the expected life of the option. The total expenses to be recorded in future periods will depend on several variables, including the number of share-based awards that vest, pre-vesting cancellations and the fair value of those vested awards.

A summary of the changes in stock options outstanding under our equity-based compensation plans during the three months ended March 31, 2008 is presented below:

 

(in thousands, except per share data)    Number of
Shares
    Weighted-
Average
Exercise
Price
   Weighted-
Average
Remaining
Contractual
Term (in
years)
   Aggregate
Intrinsic
Value

Outstanding at December 31, 2007

   5,798     $ 10.34    4.01    $ 42,886

Granted

   695     $ 14.37      

Exercised

   (123 )   $ 8.04      

Forfeited or cancelled

   (27 )   $ 10.38      
                        

Outstanding at March 31, 2008

   6,343     $ 10.83    3.93    $ 25,730
                        

Vested or expected to vest at March 31, 2008

   6,138     $ 10.82    3.92    $ 25,132

Exercisable at March 31, 2008

   4,105     $ 10.50    3.71    $ 19,581

The weighted average grant-date fair value of options granted during the three-month periods ended March 31, 2008 and 2007 were $5.47 and $5.70, respectively. The total intrinsic value, the difference between the exercise price and the market price on the date of exercise, of options exercised during the three-month periods ended March 31, 2008 and 2007, was approximately $1.0 million and $0.9 million, respectively. The total fair value of options that vested during each of the three-month periods ended March 31, 2008 and 2007 was approximately $0.1 million. At March 31, 2008 and 2007, Radiant had approximately 2.2 million and 2.4 million unvested options outstanding with a weighted-average grant-date fair value of $2.60 and $2.99, respectively. Of the 2.2 million and 2.4 million options that were unvested at March 31, 2008 and 2007, there were 0.1 million and 0.4 million options, respectively, that had a vesting period based on stock performance requirements. At March 31, 2008 and 2007, the Company recognized equity-based compensation expense equal to approximately $0.8 million related to employee and director stock options. The unvested options had a total unrecognized compensation expense as of March 31, 2008 and 2007 equal to approximately $6.1 million and $6.5 million, respectively, net of estimated forfeitures, which will be recognized over the weighted average period of 1.44 years and 1.62 years, respectively. Cash received from stock option exercises was approximately $1.0 million during each of the three-month periods ended March 31, 2008 and 2007.

 

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Table of Contents
This excerpt taken from the RADS 10-Q filed Oct 26, 2007.

Stock Options

The exercise price of each stock option equals the market price of Radiant’s common stock on the date of grant. Most options are scheduled to vest equally over a three or four-year period or when certain stock performance requirements are met. These stock performance requirements include a provision that allows for early vesting if certain stock price targets are met. The Company recognizes stock-based compensation expense using the graded vesting attribution method. Outstanding options expire no later than ten years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average assumptions used in the model for the three and nine-month periods ended September 30, 2007 and 2006 are outlined in the following table:

 

     Three Months
Ended
September 30, 2007
    Three Months
Ended
September 30, 2006
    Nine Months
Ended
September 30, 2007
    Nine Months
Ended
September 30, 2006
 

Expected volatility

   47 %   53 %   47-49 %   53-55 %

Expected life (in years)

   3-4     3-4     3-4     3-4  

Expected dividend yield

   0.00 %   0.00 %   0.00 %   0.00 %

Risk-free interest rate

   4.1 %   4.6 %   4.1% - 5.0 %   4.6% - 5.4 %

 

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The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on a combination of historical and implied volatilities. When establishing the expected life assumption, the Company reviews annual historical employee exercise behavior of option grants with similar vesting periods. The risk free interest rate is based on the U.S. Treasury yield curve at the grant date, using a remaining term equal to the expected life of the option. The total expenses to be recorded in future periods will depend on several variables, including the number of share-based awards that vest, pre-vesting cancellations and the fair value of those vested awards.

A summary of the changes in stock options outstanding under Radiant’s equity-based compensation plans during the nine months ended September 30, 2007 is presented below:

 

(in thousands, except per share data)

   Number of
Shares
    Weighted-
Average
Exercise
Price
   Weighted-
Average
Remaining
Contractual
Term
(in years)
   Aggregate
Intrinsic
Value

Outstanding at December 31, 2006

   6,284     $ 9.58    4.95   

Granted

   725     $ 12.44      

Exercised

   (834 )   $ 6.71      

Forfeited or cancelled

   (207 )   $ 9.84      

Outstanding at September 30, 2007

   5,968     $ 10.32    4.22    $ 37,009

Vested or expected to vest at September 30, 2007

   5,666     $ 10.33    4.22    $ 35,291

Exercisable at September 30, 2007

   4,130     $ 10.41    4.12    $ 26,472

The weighted average grant-date fair value of options granted during the three-month periods ended September 30, 2007 and 2006 were $5.35 and $4.16, respectively. The weighted average grant-date fair value of options granted during the nine-month periods ended September 30, 2007 and 2006 were $4.61 and $5.22, respectively. The total intrinsic value, the difference between the exercise price and the market price on the date of exercise, of options exercised during the three month periods ended September 30, 2007 and 2006, was approximately $4.1 million and $0.9 million, respectively, and $6.1 million and $4.4 million for the nine month periods ended September 30, 2007 and 2006, respectively. The total fair value of options that vested during the three-month periods ended September 30, 2007 and 2006 was approximately $0.1 million and $0.1 million, respectively. The total fair value of options that vested during the nine month periods ended September 30, 2007 and 2006 was approximately $0.9 million and $0.5 million, respectively. At September 30, 2007, Radiant had approximately 1.8 million unvested options outstanding with a weighted-average grant-date fair value of $3.03. Of the 1.8 million options that were unvested at September 30, 2007, there were 0.4 million options that had a vesting period based on stock performance requirements. The unvested options have a total unrecognized compensation expense of approximately $5.0 million, net of estimated forfeitures, which will be recognized over the weighted average period of 1.5 years. Cash received from stock option exercises was approximately $3.4 million and $0.8 million during the three month periods ending September 30, 2007 and 2006, respectively, and $5.5 million and $3.2 million for the nine month periods ended September 30, 2007 and 2006, respectively.

 

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Table of Contents
This excerpt taken from the RADS 10-Q filed Jul 27, 2007.

Stock Options

The exercise price of each stock option equals the market price of Radiant’s common stock on the date of the grant. Most options are scheduled to vest equally over a three or four-year period or when certain stock performance requirements are met. These stock performance requirements include a provision that allows for early vesting if certain stock price targets are met. The Company recognizes stock-based compensation expense using the graded vesting attribution method. Outstanding options expire no later than ten years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average assumptions used in the model for the three and six-month periods ended June 30, 2007 and 2006 are outlined in the following table:

 

     Three Months
Ended
June 30, 2007
   Three Months
Ended
June 30, 2006
   Six Months
Ended
June 30, 2007
   Six Months
Ended
June 30, 2006

Expected volatility

   48%    55%    48-49%    55%

Expected life (in years)

   3-4        3-4        3-4        3-4    

Expected dividend yield

   0.00%    0.00%    0.00%    0.00%

Risk-free interest rate

   5.0%    5.4%    4.5%-5.0%    4.8%-5.4%

 

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Table of Contents

The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on a combination of historical and implied volatilities. When establishing the expected life assumption, the Company reviews annual historical employee exercise behavior of option grants with similar vesting periods. The risk free interest rate is based on the U.S. Treasury yield curve at the grant date, using a remaining term equal to the expected life of the option. The total expenses to be recorded in future periods will depend on several variables, including the number of share-based awards that vest, pre-vesting cancellations and the fair value of those vested awards.

A summary of the changes in stock options outstanding under Radiant’s equity-based compensation plans during the six months ended June 30, 2007 is presented below:

 

(in thousands, except per share data)

   Number of
Shares
    Weighted-
Average
Exercise
Price
  

Weighted-
Average
Remaining
Contractual
Term

(in years)

   Aggregate
Intrinsic
Value

Outstanding at December 31, 2006

   6,284     $ 9.58    4.95   

Granted

   671     $ 12.27      

Exercised

   (328 )   $ 6.42      

Forfeited or cancelled

   (95 )   $ 9.50      

Outstanding at June 30, 2007

   6,532     $ 10.01    4.51    $ 27,587

Vested or expected to vest at June 30, 2007

   6,209     $ 10.01    4.49    $ 26,543

Exercisable at June 30, 2007

   4,610     $ 10.04    4.39    $ 21,238

The weighted average grant-date fair value of options granted during the three-month periods ended June 30, 2007 and 2006 were $6.24 and $5.27, respectively. The weighted average grant-date fair value of options granted during the six-month periods ended June 30, 2007 and 2006 were $5.72 and $5.28, respectively. The total intrinsic value, the difference between the exercise price and the market price on the date of exercise, of options exercised during the three-month periods ended June 30, 2007 and 2006, was approximately $1.2 million and $0.3 million, respectively and $2.1 million and $3.5 million for the six-month periods ended June 30, 2007, and 2006, respectively. The total fair value of options that vested during the three-month periods ended June 30, 2007 and 2006 was approximately $0.1 million and $0.2 million, respectively. The total fair value of options that vested during the six-month periods ended June 30, 2007 and 2006 was approximately $0.2 million and $0.4 million, respectively. At June 30, 2007, Radiant had approximately 1.9 million unvested options outstanding with a weighted-average grant-date fair value of $2.43. Of the 1.9 million options that were unvested at June 30, 2007, there were 0.4 million options that had a vesting period based on stock performance requirements. The unvested options have a total unrecognized compensation expense of approximately $4.9 million, net of estimated forfeitures, which will be recognized over the weighted average period of 1.78 years. Cash received from stock option exercises was approximately $1.1 million and $0.3 million during the three-month periods ending June 30, 2007 and 2006, respectively, and $2.1 million and $2.4 million for the six-month periods ended June 30, 2007 and 2006, respectively.

 

10


Table of Contents
This excerpt taken from the RADS 10-Q filed May 4, 2007.

Stock Options

The exercise price of each stock option equals the market price of Radiant’s stock on the date of grant. Most options are scheduled to vest equally over a three or four-year period or when certain stock performance requirements are met. These stock performance requirements include a provision that allows for early vesting if certain stock price targets are met. The Company recognizes stock-based compensation expense using the graded vesting attribution method. Outstanding options expire no later than ten years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The weighted average assumptions used in the model for the three-month periods ended March 31, 2007 and 2006 are outlined in the following table:

 

     Three Months
Ended
March 31, 2007
    Three Months
Ended
March 31, 2006
 

Expected volatility

   49 %   55 %

Expected life (in years)

   4     4  

Expected dividend yield

   0.00 %   0.00 %

Risk-free interest rate

   4.51 %   4.87 %

 

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Table of Contents

The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on a combination of historical and implied volatilities. When establishing the expected life assumption, the Company reviews annual historical employee exercise behavior of option grants with similar vesting periods. The risk free interest rate is based on the U.S. Treasury yield curve at the grant date, using a remaining term equal to the expected life of the option. The total expenses to be recorded in future periods will depend on several variables, including the number of share-based awards that vest, pre-vesting cancellations and the fair value of those vested awards.

A summary of the changes in stock options outstanding under Radiant’s equity-based compensation plans during the three months ended March 31, 2007 is presented below:

 

(in thousands, except per share data)    Number of
Shares
    Weighted-
Average
Exercise
Price
   Weighted-
Average
Remaining
Contractual
Term
(in years)
   Aggregate
Intrinsic
Value

Outstanding at December 31, 2006

   6,284     $ 9.58    4.95   

Granted

   644     $ 12.23      

Exercised

   (154 )   $ 6.25      

Forfeited or cancelled

   (52 )   $ 8.52      

Outstanding at March 31, 2007

   6,722     $ 9.92    4.77    $ 27,697

Vested or expected to vest at March 31, 2007

   6,442     $ 9.92       $ 26,798

Exercisable at March 31, 2007

   4,291     $ 10.09    4.49    $ 19,354

The weighted average grant-date fair value of options granted during the three month periods ended March 31, 2007 and 2006 were $5.70 and $5.37, respectively. The total intrinsic value, the difference between the exercise price and the market price on the date of exercise, of options exercised during the three month periods ended March 31, 2007 and 2006, was approximately $0.9 million and $3.2 million, respectively. The total fair value of options that vested during the three month periods ended March 31, 2007 and 2006 was approximately $0.1 million and $0.2 million, respectively. At March 31, 2007, Radiant had approximately 2.4 million unvested options outstanding with a weighted-average grant-date fair value of $2.99. Of the 2.4 million options that were unvested at March 31, 2007, there were 0.4 million options that had a vesting period based on stock performance requirements. The unvested options have a total unrecognized compensation expense of approximately $6.5 million, net of estimated forfeitures, which will be recognized over the weighted average period of 1.62 years. Cash received from stock option exercises was approximately $1.0 million and $2.1 million during the three month periods ending March 31, 2007 and 2006, respectively.

 

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