Tellurian Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation (Tables)

Stock-Based Compensation (Tables)

9 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The following table summarizes the stock option activity for the nine months ended March 31, 2014:



	Number of Shares			WAEPS ⁽¹⁾
Fiscal year opening balance	7,788,957			$1.33
Granted	3,000,000			$1.03
Forfeited	(41,666	)		$1.05
Balance at March 31, 2014	10,747,291			$1.25
Weighted average remaining contractual term	6.4		years

⁽¹⁾ Weighted average exercise price per share

Fair Value of Shares Issued Under the Stock Plan and Weighted-Average Assumptions

The fair value of stock options granted under the 2012 Stock Incentive Plan or the 1998 Stock Plan was estimated using the following weighted-average assumptions for the nine months ended:



	March 31,
	2014								2013
	PBOs ⁽¹⁾					Market Based ⁽²⁾			PBOs
Number of options	1,500,000					1,500,000			1,007,500
Weighted average grant date fair value per share	$0.57					$0.69			$0.61
Expected dividend	0					0			0
Forfeiture rate	0					0			0
Risk free interest rate	1.5	%	-	1.7	%		2.8	%	0.6	%	-	0.8	%
Expected life (years)	0.4		-	1.6			2.6		5.1		-	6.0
Expected volatility (based on historical price)	61.7	%	-	61.9	%		66.6	%	60.3	%	-	63.5	%

⁽¹⁾ The term related to these PBOs were estimated using an average probabilistic weighted method.

⁽²⁾ The Company assumed market based options will be voluntarily exercised at the midpoint of vesting, and the contractual term.