Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

Equity Offering and Stock-Based Compensation Plan

v2.4.0.8
Equity Offering and Stock-Based Compensation Plan
 9 Months Ended
Sep. 30, 2013
Equity Offering and Stock-Based Compensation Plan [Abstract]  
Equity Offering and Stock-Based Compensation Plan

Note 9. Equity Offering and Stock-Based Compensation Plan

On September 18, 2013, the Company completed an offering of 5,175,000 of its ordinary shares and received net proceeds of $462.9 million.

Stock-based compensation expense for stock options and restricted stock units ("RSUs") was allocated as follows (in thousands):

  Three Months Ended   Nine Months Ended
  September 30,   September 30,
  2013       2012       2013       2012
Cost of sales $       793   $       -   $       2,059   $       -
Research and development, net   821     -     2,567     -
Selling, general and administrative   4,998     784     12,837     1,897
Total stock-based compensation expenses $ 6,612   $ 784   $ 17,463   $ 1,897

A summary of stock option activity for the nine months ended September 30, 2013 is as follows:

                          Weighted
    Number                   Average
    of Options   Per Share   Exercise
    Outstanding   Exercise Price   Price
Shares under option                                        
       at January 1, 2013   3,315,917     $       2.21    -    $       46.87   $       11.83
Granted   358,239       74.95   -     91.56     84.88
Exchanged for MakerBot options                            
       from merger   77,631       2.74   -     7.30     4.76
Exercised          (1,265,673 )     2.21   -     46.87     7.91
Forfeited   (26,651 )     6.52   -     46.87     34.80
Shares under option                            
       at September 30, 2013   2,459,463     $ 2.21   -   $ 91.56   $ 24.03
Shares exercisable under option                            
       at September 30, 2013   1,412,361     $ 2.21   -   $ 46.87   $ 8.94

The outstanding options generally have a term of ten years from the grant date. Options granted become exercisable over the vesting period, which is normally a four-year period beginning on the grant date, subject to the employee's continuing service to the Company.

The weighted-average grant date fair value of options that were granted during the nine months ended September 30, 2013 was $45.98.

The following table provides the assumptions used in the Black-Scholes pricing model valuation of options granted during the nine months ended September 30, 2013:

Risk-free interest rate 0.61 - 1.54%
Expected option term 5.11 years
Expected price volatility 55.86 - 56.87%
Dividend yield -

During the three months ended September 30, 2013 and 2012 the Company issued 618,006 and 115,660 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $4.0 million and $2.1 million for the three months ended September 30, 2013 and 2012, respectively. During the nine months ended September 30, 2013 and 2012 the Company issued 1,265,673 and 207,800 shares, respectively, upon the exercise of stock options. This resulted in an increase in equity of $10.0 million and $3.6 million for the nine months ended September 30, 2013 and 2012, respectively.

During the three months ended September 30, 2013, the Company granted RSUs for 191,608 ordinary shares of the Company. Stock-based compensation expense equal to the aggregate fair value of the RSUs at grant date of $18.5 million, less an estimate of forfeitures, is being recorded on a straight-line basis over the four-year vesting period.

At September 30, 2013, approximately $64.4 million of total unrecognized compensation expense related to unvested stock-based compensation granted under the Company's plans. The cost is expected to be recognized over a weighted-average period of 3.6 years.