Notes to Consolidated Financial Statements
(CON TINUE D)
exchanged for common stock at the IPO. The unit grants generally
vest over four years of continual service and have an
initial cost per unit of $0.01. The fair value of these grants was
determined by the Company at the grant date and was equal
to the fair market value of the units at the date of grant. The
fair value is amortized to compensation expense on a straightline
basis over the vesting period. The unrecognized future
compensation cost is US $32,832 (2009: US $0.9 million) and
will be fully recognized by April 20, 2011.
Employees
As of December 31, 2010 the total unrecognized compensation
cost for these unit grants was US $31,857 (2009: US $0.9
million), which is being amortized over the remaining weighted
average vesting period of four months (2009: 1.25 years). The
compensation recognized in operating expenses for unit
grants for the year ended December 31, 2010 was US $0.3 million
(2009: US $2.1 million). Since inception to December 31,
2010, 1,447,869 units granted have vested. The initial cost of
the unit grants to the employees was forgiven by the Company
and was treated as additional compensation to the employee.
No unit grants were made during the years ended December
31, 2010 and 2009.
Non-employees
As of December 31, 2010 the total unrecognized compensation
cost for these unit grants was US $975 (2009: US $1,845),
which is being amortized over the remaining weighted average
vesting period of four months (2009: 2 years). The compensation
recognized in operating expenses for unit grants
for the year ended December 31, 2010 was US $2,071 (2009:
US $2,466). Since inception to December 31, 2010, 101,144
units granted have vested. The initial cost of the unit grants to
the non-employees was forgiven by the Company and was
treated as additional compensation to the non-employee.
The Company did not issue any unit grants during the years
ended December 31, 2010 and 2009.
Summary Unit Grant Information
The Company determined the estimated unit price of the
grants at the measurement date by using a combination of
an independent valuation of the Company's units and internal
analysis of milestones of the Company throughout the year.
Effective with the recapitalization from a limited liability
company to a corporation on May 23, 2007 and the IPO, the
units granted to employees and nonemployees were converted
to shares based upon the IPO conversion of 1 unit to
0.8606 shares.
A summary of unit grant activity under the unit grant plan is
summarized as follows:
Number
of Shares*
Outstanding at December 31, 2008 1,515,891
Granted -
Forfeited (34,003)
Outstanding at December 31, 2009 1,481,888
Granted -
Forfeited -
Outstanding at December 31, 2010 1,481,888
*Units granted under the plan converted to shares
The total shares granted under unit grant agreements included
in the statement of shareholders' equity include both vested
and non-vested shares. The remaining unvested shares were
fully vested on April 20, 2011.
(b) 2007 Equity Compensation Plan
On May 23, 2007, the Board of Directors approved the
TyraTech, Inc. 2007 Equity Compensation Plan (the Plan), as
amended, which authorizes up to a maximum of ten percent
of the issued share capital of the Company (5,183,746 shares
at December 31, 2010) to be made available for granting of
awards to all employees and non-employee directors. These
share awards can be in the form of options to purchase capital
stock, stock appreciation rights (SA Rs), restricted shares, and
other option stock based awards the Board of Directors'
Remuneration Committee shall determine. The Remuneration
Committee, which is comprised of all independent Directors,
determines the number of shares, the term, the frequency and
date, the type, the exercise periods, any performance criteria
pursuant to which awards may be granted and the restrictions
and other terms of each grant of restricted shares in accordance
with terms of the Plan.
40
