Stratasys Ltd. Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Stock Options (Tables)

Stock Options (Tables)

12 Months Ended

Dec. 31, 2013

A summary of the stock option activity (reflecting historical Stratasys Inc. stock options prior to the Stratasys-Objet merger date) for the years ended December 31, 2013, 2012 and 2011 is as follows:

								Weighted
	Number							Average
	of Options		Per Share					Exercise
	Outstanding		Exercise Price					Price
Shares under option
at January 1, 2011	1,182,650		$	8.27	-	$	33.06	$	15.16
Granted in 2011	325,000			21.08	-		25.95		25.42
Exercised in 2011	(423,783	)		8.27	-		24.65		14.61
Expired in 2011	(3,000	)		12.49	-		12.49		12.49
Forfeited in 2011	(43,600	)		9.30	-		25.50		16.08
Shares under option
at December 31, 2011	1,037,267			9.30	-		33.06		18.59
Granted in 2012	336,750			46.87	-		46.87		46.87
Objet options from merger in 2012	3,286,909			2.21	-		15.64		6.10
Exercised in 2012	(1,322,047	)		2.21	-		33.06		11.50
Forfeited in 2012	(22,962	)		9.30	-		46.87		31.05
Shares under option
at December 31, 2012	3,315,917			2.21	-		46.87		11.84
Granted in 2013	388,131			74.95	-		120.51		86.22
MakerBot options from merger in 2013	77,631			2.74	-		7.30		4.76
Exercised in 2013	(1,741,953	)		2.21	-		74.95		7.18
Forfeited in 2013	(32,293	)		2.74	-		91.56		30.40
Shares under option
at December 31, 2013	2,007,433		$	2.21	-	$	120.51	$	29.66

Schedule of Stock Options Exercisable

A summary of stock options exercisable at December 31, 2013, 2012 and 2011 is as follows:

							Weighted
	Number						Average
	of	Per Share					Exercise
	Shares	Exercise Price					Price
Options exercisable at
December 31, 2013	1,013,848	$	2.21	-	$	74.95	$	11.36

Options exercisable at
December 31, 2012	2,281,298	$	2.21	-	$	46.87	$	7.32

Options exercisable at
December 31, 2011	210,520	$	9.30	-	$	26.15	$	16.44

Schedule of Stock Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2013:

	Options Outstanding					Options Exercisable
	Number		Weighted-			Number
	Outstanding		Average	Weighted-		Exercisable		Weighted-
	at		Remaining	Average		at		Average
Exercise	December 31,		Contractual	Exercise		December 31,		Exercise
Prices	2013		Life in Years	Price		2013		Price
$2.21 - $7.82		773,770	4.3	$	5.94		618,965	$	5.53
9.30 - 18.26		508,832	3.5		15.40		269,989		15.19
18.78 - 74.95		370,179	4.6		43.63		124,894		31.97
82.15 - 120.51		354,652	9.5		87.27		0		-
		2,007,433			29.66		1,013,848		11.36
Aggregate
intrinsic value	$	59,536,686				$	11,516,404

Schedule of Stock-based Compensation

Stock-based compensation expenses included in the Company's Statements of Operations were:

	2013		2012		2011
Cost of sales	$	2,980	$	603	$	-
Research and development, net		3,491		960		-
Selling, general and administrative		17,791		7,311		1,587
Total stock-based compensation expenses	$	24,262	$	8,874	$	1,587

Stock Options [Member]

Schedule of Stock Option Assumptions

The following assumptions were applied in determining the compensation cost:

	2013		2012		2011
Risk-free interest rate		1.4% - 1.7%		0.8%		0.9% - 1.5%
Expected option term		5.1 - 5.2 years		4.5 years		4.5 years
Expected price volatility		56% - 57%		62%		55%
Dividend yield		-		-		-
Weighted average grant date fair value	$	40.94	$	22.36	$	10.67