Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Limelight Networks, Inc. (1391127) 10-Q published on Jul 18, 2019 at 2:13 pm
Reporting Period: Jun 29, 2019
We apply the straight-line attribution method to recognize compensation costs associated with awards that are not subject to graded vesting. For awards that are subject to graded vesting and performance based awards, we recognize
compensation costs separately for each vesting tranche. We also estimate when and if performance-based awards will be earned. If an award is not considered probable of being earned, no amount of share-based compensation is recognized. If the award is deemed probable of being earned, related compensation expense is recorded over the estimated service period. To the extent our estimates of awards considered probable of being earned changes, the amount of share-based compensation recognized will also change.
In June 2013, our stockholders approved our 2013 Employee Stock Purchase Plan (ESPP), authorizing the issuance of 4,000 shares. In May 2019, our stockholders approved the adoption of Amendment 1 to the ESPP. Amendment 1 increased the number of shares authorized to 9,000 shares (an increase of 5,000 shares) and amended the maximum number of shares of common stock that an eligible employee may be permitted to purchase during each offering period to be 5 shares. The ESPP allows participants to purchase our common stock at a 15% discount of the lower of the beginning or end of the offering period using the closing price on that day. During the three and six months ended June 30, 2019, we issued 449 shares under the ESPP. Total cash proceeds from the purchase of the shares under the ESPP was approximately $1,095. As of June 30, 2019, shares reserved for issuance to employees under this plan totaled 4,585, and we held employee contributions of $294 (included in other current liabilities) for future purchases under the ESPP.
Our general and administrative expense increased in aggregate dollars and increased as a percentage of total revenue for the three months ended June 30, 2019, versus the comparable 2018 period. For the six months ended June 30, 2019, our general and administrative expense decreased in aggregate dollars and increased as a percentage of revenue versus the comparable 2018 period.
The decrease in aggregate dollars for the six months ended June 30, 2019, versus the comparable 2018 period was primarily driven by the decrease in litigation expenses due to the settlement of our intellectual property lawsuits, and to a lessor extent a reduction in payroll and related employee costs (reduced salary expense and lower variable compensation). These decreases were offset by increased professional fees and increased other costs consisting of bad debt expense and fees and licenses.
Interest expense was $10 for the three months ended June 30, 2019, versus $7 for the comparable 2018 period. For the six months ended June 30, 2019, interest expense was $20 versus $66 for the comparable 2018 period. The decrease in the six months ended June 30, 2019 was due to fees incurred during the comparable 2018 period associated with the Fourth Amendment (Fourth Amendment) to the Loan and Security Agreement (the Credit Agreement) with Silicon Valley Bank (SVB) originally entered into in November 2015.