Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 6 Months Ended
Jun. 30, 2015
Equity [Abstract]  
Stockholders' Equity

(12)

Stockholders’ Equity

Common Stock, par value $0.001 per share

We are authorized to issue up to 9,000,000 shares of common stock. There were 5,379,798 and 5,653,529 shares of common stock issued and 5,370,298 and 5,646,119 shares outstanding on June 30, 2015 and December 31, 2014, respectively.

As of June 30, 2015, 261,694 shares of common stock were reserved for issuance in connection with incentive stock based awards and common stock to be granted to members of our board of directors, employees and third parties.

Stock Repurchase Program

As of June 30, 2015, our board of directors has approved for repurchase an aggregate of $6,000,000 our common stock.  Our board of directors did not establish an end date for this stock repurchase program.  Shares of common stock may be purchased from time to time on the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act, in privately negotiated transactions, including transactions with Liberty Media and its affiliates, or otherwise.  As of June 30, 2015, our cumulative repurchases since December 2012 under our stock repurchase program totaled 1,547,431 shares for $5,379,148, and $620,852 remained available under our stock repurchase program.

The following table summarizes our share repurchase activity for the six months ended:

 

 

 

June 30, 2015

 

 

June 30, 2014

 

Share Repurchase Type

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

Open Market and Privately Negotiated Repurchases (a)

 

 

288,156

 

 

$

1,093,955

 

 

 

188,420

 

 

$

612,903

 

Liberty Media (b)

 

 

—

 

 

 

—

 

 

 

92,889

 

 

 

340,000

 

May 2014 ASR Agreement (c)

 

 

—

 

 

 

—

 

 

 

112,500

 

 

 

600,000

 

Total Repurchases

 

 

288,156

 

 

$

1,093,955

 

 

 

393,809

 

 

$

1,552,903

 

 

(a)

As of June 30, 2015, $35,795 of common stock repurchases had not settled, nor been retired, and were recorded as Treasury stock within our unaudited consolidated balance sheets and unaudited consolidated statements of stockholders’ equity.  

(b)

On April 25, 2014, we completed the final purchase installment under an agreement with Liberty Media.

(c)

In May 2014, we entered into an accelerated share repurchase agreement (the “May 2014 ASR Agreement”) under which we prepaid $600,000 to a third-party financial institution to repurchase our common stock.  Under the May 2014 ASR Agreement, we received an initial delivery of 112,500 shares of our common stock during the six months ended June 30, 2014 which were retired upon settlement.  Subsequent to June 30, 2014, we received 39,346 shares of our common stock and $93,596 for the unused portion of the original prepayment under the May 2014 ASR Agreement.

Preferred Stock, par value $0.001 per share

We are authorized to issue up to 50,000 shares of undesignated preferred stock with a liquidation preference of $0.001 per share.  There were no shares of preferred stock issued or outstanding as of June 30, 2015 and December 31, 2014.

Warrants

We have issued warrants to purchase shares of our common stock in connection with distribution and programming agreements.  As of December 31, 2014, 16,667 warrants to acquire an equal number of shares of common stock with an exercise price of $2.50 per share were outstanding and fully vested.  During the three months ended June 30, 2015, the remaining 16,667 warrants were exercised on a net settlement basis, resulting in the issuance of 6,010 shares of our common stock.  Except for an insignificant amount of warrant expense associated with the extension of the warrants during the three months ended March 31, 2015, we did not incur warrant related expenses during the three and six months ended June 30, 2015 and 2014.  Warrants were included in our calculation of diluted net income per common share as the effect was dilutive for the three and six months ended June 30, 2014.  As of June 30, 2015, there were no warrants outstanding.