QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Accelerated filer Non-accelerated filer Smaller reporting company
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Substantially all options issued prior to December 2008 were repriced to $0.35 per share at that time. The weighted average fair value of options vested during the nine months ended December 31, 2012 and 2011 was $0.30 per share and $0.27 per share, respectively. No options were exercised during the nine months ended December 31, 2012.
Salon recognized stock-based compensation expense of $146 and $251 during the nine months ended December 31, 2012 and 2011, respectively.
On October 17, 2012, Salon signed a new office lease agreement to relocate its San Francisco headquarters to 870 Market Street, Suite 528, San Francisco, California. The three-year lease, covering approximately 2,405 square feet in space, commenced on December 1, 2012 and will terminate on November 30, 2015.
On November 29, 2010, certain stockholders abandoned their interest in 63 shares of Salon Series A Preferred Stock, by surrendering their interest to the Company for no consideration.
Salon believes that its original, award-winning content allows Salon to attract and retain users who are more affluent, better educated and more likely to make online purchases than typical Internet users. Salon believes its user profile makes its Website a valuable media property for advertisers and retailers who are allocating marketing resources to target consumers online.
adserving costs.
The Company did not incur income from discontinued operations for the three months ended December 31, 2012. Salon incurred $0.01 million in income from discontinued operations for the three month period ended December 31, 2011 primarily due to subscription revenue. For the nine months ended December 31, 2012, income from discontinued operations increased 357% to $0.23 compared to $0.05 for the nine month period ended December 31, 2011. The increase primarily stems from the gain on the sale of the Well subscription service on September 20, 2012.
Our success greatly depends on the continued contributions of our senior management and other key sales, marketing and operations personnel. While we have employment agreements with some key management, these employees may voluntarily terminate their employment at any time. We may not be able to successfully retain existing personnel or identify, hire and integrate new personnel; and we do not have key person insurance policies in place for these employees.
If any of these circumstances occurred, Salon’s business could be harmed. Salon’s insurance policies may not adequately compensate it for losses that may occur due to any failures of or interruptions in its systems. Salon does not presently have a formal disaster recovery plan.