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)

6 Months Ended

Dec. 31, 2014

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

The following table summarizes the stock option activity for the six months ended December 31, 2014:



	Number of Shares			WAEPS ⁽¹⁾
Fiscal year opening balance	10,492,291			$1.26
Granted	1,650,000			$1.80
Exercised	(494,791	)		$1.09
Forfeited/canceled	(2,882,085	)		$1.14
Expired	(12,500	)		$1.03
Balance at December 31, 2014	8,752,915			$1.41
Weighted average remaining contractual term	6.15		years

⁽¹⁾ Weighted average exercise price per share

Weighted-Average Assumptions

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



	December 31,
	2014						2013
	PBOs ⁽¹⁾			Market Based⁽²⁾			PBOs ⁽¹⁾			Market Based⁽²⁾
Number of options	1,250,000			400,000			1,500,000			1,500,000
Weighted-average grant date fair value per share	$0.88			$1.17			$0.57			$0.69
Expected dividend yield	—%			—%			—%			—%
Forfeiture rate	15.0%			15.0%			—%			—%
Risk free interest rate	1.7%			2.4%			1.5%	-	1.7%	2.8%
Expected life (years)	5.3	-	5.4	3.2	-	3.9	0.4	-	1.6	2.6
Expected volatility (based on historical price)	53.6%	-	54.1%	64.4%			61.7%	-	61.9%	66.6%

⁽¹⁾The terms 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 between vesting and the contractual term.