DRIVIN G ROWTH - Dr. Reddy's

248
notes to financial statements
Information with respect to plan activity is as follows:
Number
of Shares
Authorised and outstanding at December 31, 2000 –
Granted 186,000
Exercised –
Outstanding March 31, 2001 186,000
Granted 109,500
Exercised –
Cancelled (2,000)
Outstanding March 31, 2002 293,500
Weighted average remaining contractual life 8.8 years
All options issued at $ 0.18, the weighted average per share.
On the first anniversary of the effective vesting date, participant shall vest in 25% of the option. For the three (3) years beginning
on the first anniversary of the participant’s employment date, participant shall vest in a portion of the option until fully vested. At
December 31, 2001, options to purchase 68,430 shares of common stock were vested and exercisable at eighteen cents ($ 0.18)
per share.
The Company has elected to Follow APB No. 25 and related interpretations in accounting for its stock options since, the alternative
fair value accounting provided for under FAS 123 requires the use of option valuation models that were not developed for use in
valuing stock options. Under APB Opinion No. 25, if the exercise price of the Company’s stock options is equal to the fair market
value of the underlying stock on the date of the grant, no compensation expense is recognised.
Proforma information regarding net income and net income per common share is required by FAS 123, which requires that the
information be determined as if the Company has accounted for its common stock options granted subsequent to December 31,
1994 under the fair value method. Pro forma information is not presented since the compensation cost for the stock options is
insignificant for the year ended March 31, 2002 and the three months ended March 31, 2001.
REDDY US THERAPEUTICS, INC. | FINANCIALS | ANNUAL REPORT 2001-2002