Quarterly report pursuant to Section 13 or 15(d)

Convertible, Redeemable Preferred Stock, Stock Options, Common Stock and Warrants (Tables)

v2.4.0.6
Convertible, Redeemable Preferred Stock, Stock Options, Common Stock and Warrants (Tables)
 3 Months Ended
Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Convertible, Redeemable Preferred Stock
The following is a summary of activity of Row 44's convertible, redeemable preferred stock for the three months ended March 31, 2013:

(in thousands)
 
 
 
 
 
 
 
Row 44 Preferred Stock
Series A-1
Series A-2
Series B-1
Series B-2
Series C-1
Series C-2
Total
Balance - January 1, 2013
$
9,245

$
21,454

$
27,488

$
19,981

$
24,535

$
19,837

$
122,540

Cumulative dividends
60

139

179

129

170

141

818

Accretion of preferred stock
—

—

—

—

57

67

124

Conversion to common stock
(9,305
)
(21,593
)
(27,667
)
(20,110
)
(24,762
)
(20,045
)
(123,482
)
Balance - March 31, 2013
$
—

$
—

$
—

$
—

$
—

$
—

$
—

Schedule of Stock Options, Valuation Assumptions
Fair values of the stock options were determined using the Black-Scholes model and the following level 3 assumptions:

Stock Value (low value of range) (per share)
$
9.94

Stock Value (high value of range) (per share)
$
10.04

Weighted-Average Expected Term
4.87 years

Risk-Free Rate
0.77
%
Expected Stock Volatility
50.00
%
Dividend Yield
—
%
Schedule of Share-based Compensation, Stock Options, Activity
Stock option activity for three months ended March 31, 2013 is as follows:

Row 44 2011 Equity Incentive Plan
Shares
Weighted Average Exercise Price
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value (in thousands)
Outstanding - January 1, 2013
43,686,492

$
0.11

7.95 years

$
9,187

     Granted
—

—

—

—

     Exercised-cashless (Global Eagle)
(40,644,825
)
0.11

—

—

     Exercised-cash
(225,000
)
0.10

—

—

     Forfeited
(2,816,667
)
0.10

—

—

Outstanding - January 31, 2013
—

$
—

—

$
—



Global Eagle Stock Option Plan
Shares
Weighted Average Exercise Price
Weighted Average Remaining Contractual Term
Aggregate Intrinsic Value (in thousands)
Outstanding - January 31, 2013
—

$
—

—

$
—

     Granted
3,350,000

9.94

4.88 years

10,250

     Exercised
—

—

—

—

     Forfeited
—

—

—

—

Outstanding - March 31, 2013
3,350,000

9.94

4.88 years

10,250

Exercisable at March 31, 2013
6,252

10.00

4.89 years

—

Expected to vest at March 31, 2013
3,343,748

$
9.94

4.88 years

$
10,250

Schedule of Share-based Compensation, Stock Options, by Exercise Price Range
The following is a summary of the Company's stock options outstanding at March 31, 2013:

Exercise Price
Number Outstanding
Weighted Average Remaining Contractual Life
Number Exercisable
Weighted Average Remaining Contractual Life
$
10.00

2,325,000

4.84 years
6,252

4.89 years
$
9.79

1,025,000

4.93 years
—

n/a
Schedule of Share-based Compensation Expense Allocation
The fair value of stock options vested and related stock-based compensation recognized, during the three months ended March 31, 2013, and 2012, amounted to $0.5 million and $0.5 million, respectively, and was included in salaries and wages and research and development expenses as follows:

 
Three Months Ended March 31,
(in thousands)
2013
2012
Salaries and wages
$
496

$
443

Research and development
—

16

                            Total
$
496

$
459

Schedule of Share-based Compensation, Warrants, by Exercise Price Range
The following is a summary of all Row 44 warrants (exercise price per warrant and number of warrants presented using the conversion ratio to Global Eagle common stock used in the Row 44 Merger) outstanding at March 31, 2013:

Exercise Price per Warrant (as converted)
Number of Warrants (as converted)
Class of Shares
Weighted Average Remaining Life
 
$
4.41

4,282

Common
3.94 years
 
8.82

685,199

Common
3.97 years
 
23.53

32,119

Common
1.74 years
 Total outstanding
 
721,600



 
$
8.74

734,451

Series C-2
4.18 years
Total outstanding
 
734,451



Row 44 Warrants
  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Share-based Compensation, Warrants, Activity
The following is a summary of Row 44 warrants for common stock convertible into GEE common stock for the three months ended March 31, 2013:

Row 44 Warrants for Common Stock - Upon Exercise Convertible to Global Eagle Common Stock
Number of Warrants
Weighted Average Exercise price
Weighted Average Remaining Contractual Term
Outstanding - January 1, 2013
84,612,107

$
0.0801

4.92 years
     Granted
2,414,524

—


     Exercised
(65,964,131
)
0.0001


     Forfeited
—

—


Outstanding - January 31, 2013
21,062,500

0.3214

4.03 years
     Granted
—

—


     Exercised
—

—


     Forfeited
—

—


Outstanding - March 31, 2013
21,062,500

0.3214

3.87 years
Exercisable at March 31, 2013
21,062,500

0.3214

3.87 years
Global Eagle Acquisition Warrants
  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Schedule of Share-based Compensation, Warrants, Activity
The following is a summary of Global Eagle warrants for the three months ended March 31, 2013:

Global Eagle Warrants
Number of Warrants
Weighted Average Exercise price
Weighted Average Remaining Contractual Term
Outstanding - January 31, 2013
25,992,500

$
11.50

5.00 years
     Granted
666,667

11.50


     Exercised
—

—


     Forfeited
—

—


Outstanding - March 31, 2013
26,659,167

11.50

4.92 years
Exercisable at March 31, 2013
26,659,167

11.50

4.92 years