These excerpts taken from the RNOW 10-K filed Mar 6, 2009.
(p) Stock-Based Compensation
On January 1, 2006, the Company adopted the provisions of Statement of Financial Accounting Standards No. 123(R), Share Based Payment, (SFAS 123R), for its stock-based compensation plans. Under SFAS 123R, stock-based compensation costs are recognized based on the estimated fair value at the grant date for all stock-based awards. The Company estimates grant date fair values using the Black-Scholes-Merton option pricing model, which requires assumptions of the life of the award and the stock price volatility over the term of the award. The Company records compensation cost of stock-based awards using the straight line method, which is recorded into earnings over the vesting period of the award. Pursuant to the income tax provisions included in SFAS 123R, the Company has elected the short cut method of computing its hypothetical pool of additional paid-in capital that is available to absorb future tax benefit shortfalls.
The Company has elected to use the modified prospective transition method as permitted under SFAS 123R and therefore has not restated its financial results for prior periods. Under this transition method, compensation cost recorded in the years ended December 31, 2006, 2007 and 2008 includes the cost for all stock-based awards granted prior to, but not yet vested as of December 31, 2005, based on the grant-date fair value estimated in accordance with the original provisions of SFAS 123. Compensation expense for all stock-based awards granted after December 31, 2005 was based on the grant-date fair value estimated in accordance with the provisions of SFAS 123R.
From time to time the Company may grant stock options to consultants. The Company accounts for consultant stock options in accordance with SFAS 123R and Emerging Issues Task Force Consensus Issue No. 96-18 (EITF 96-18), Accounting for Equity Instruments that are Issued to Other Than Employees for Acquiring, or in Conjunction With Selling, Goods or Services. Compensation expense for the grant of stock options to consultants is determined based on the estimated fair value of the stock options at the measurement date as defined in EITF 96-18 and is recognized over the vesting period. No awards were granted to non-employees during the years ended December 31, 2006, 2007, and 2008.
This excerpt taken from the RNOW 10-Q filed Nov 9, 2006.
This excerpt taken from the RNOW 10-Q filed Aug 9, 2006.
This excerpt taken from the RNOW 10-Q filed May 10, 2006.