Stockholders' Equity | Note 8 — Stockholders’ Equity Tencent Investment On April 29, 2015, the Company entered into a Purchase Agreement with Tencent Holdings Limited (“Tencent”) and Tencent’s controlled affiliate, Red River Investment Limited (“Red River”). Pursuant to the Purchase Agreement, the Company issued to Red River in a private placement an aggregate of 21,000 shares of the Company’s common stock (the “Shares”) at a purchase price of $6.00 per share, for aggregate net proceeds of $125,15 6 , after offering expenses. The Company issued 12,500 of the Shares to Red River on April 29, 2015 and issued the remaining 8,500 Shares at a second closing on June 3, 2015. Acquisitions On August 20, 2014, as part of the consideration for its acquisition of Cie Games, the Company issued an aggregate of 9,983 shares of its common stock to Cie Games’ former shareholders, of which approximately 2,139 shares will be held back by Glu for 18 months to satisfy potential indemnification claims under the Cie Games merger agreement. On May 14, 2014, as consideration for its acquisition of PlayFirst, the Company issued an aggregate of 2,849 shares of its common stock to PlayFirst’s former shareholders, which is net of shares withheld to cover a net working capital adjustment, stockholders’ agent expenses and tax obligations of former PlayFirst shareholders. Of the 2,849 shares issued in the acquisition, 1,500 are being held in escrow and will be retained by the Company for 24 months to satisfy potential indemnification claims under the PlayFirst merger agreement. During the third quarter of 2014, approximately 24 shares that were being held back pursuant to the PlayFirst merger agreement were cancelled to satisfy a net working capital adjustment . Shares Issued in Connection with the Blammo Earnout On August 1, 2011, the Company completed the acquisition of Blammo Games Inc. (“Blammo”), by entering into a Share Purchase Agreement (the “Share Purchase Agreement”) by and among the Company, Blammo and each of the owners of the outstanding share capital of Blammo (“the Sellers”). Pursuant to the terms of the Share Purchase Agreement, the Company agreed to issue to the Sellers, in the aggregate, 1,000 shares of the Company’s common stock plus up to an additional 3,313 shares of the Company’s common stock (the “Additional Shares”) if Blammo achieved specified Net Revenue (as such term is defined in the Share Purchase Agreement) targets during the fiscal years ending March 31, 2013, March 31, 2014 and March 31, 2015. As of September 30, 2014, the vesting conditions for these earn out shares for the respective fiscal years were attained. During the nine months ended September 30, 2014, the Company issued 1,185 shares in settlement of the last two tranches of the earn out. The fair value of these shares has been presented in additional paid-in capital on the Company’s unaudited condensed consolidated balance sheet Three of the five Sellers were also employees of Blammo and the contingent consideration issuing to these employees was not considered part of the purchase price, since vesting was contingent upon these employees’ continued service during the earn-out periods, see Note 9 for additional details on the fair value recognition and measurement of this contingent consideration. The fair value of the contingent consideration issued to the two Sellers who were not employees of Blammo was recorded as part of the purchase accounting and was fair valued at each subsequent reporting period. During the three and nine months ended September 30, 2015, the Company recorded no fair value adjustments for the non-employee contingent consideration, as the contingency related to the number of shares earned was resolved during the second quarter of 2014. During the three and nine months ended September 30, 2014, the Company recorded fair value expense adjustments of zero and $835 , respectively. In accordance with ASC 805, changes in the fair value of non-employee contingent consideration were recognized in general and administrative expense in the Company’s unaudited condensed consolidated statements of operations. Public Offering In June 2014, the Company sold in an underwritten public offering an aggregate of 9,861 shares of its common stock at a public offering price of $3.50 per share for net cash proceeds of approximately $32,058 after underwriting discounts and other offering expenses. Warrants to Purchase Common Stock Celebrity Warrants In September 2014, the Company issued to Kimsaprincess, Inc. (“KAP”) and two other entities associated with KAP’s president, Kim Kardashian West, a total of three warrants exercisable for up to an aggregate of 500 shares of the Company’s common stock (collectively, the “Kardashian Warrants”), subject to adjustments for dividends, reorganizations and other common stock events. Each of the Kardashian Warrants vests and becomes exercisable in equal monthly installments over the 60 -month term of the KAP License Agreement, subject to full acceleration or cessation of vesting under specified circumstances, as stipulated in the amended KAP License Agreement. The Company estimated the fair value of the warrants using a Black-Scholes valuation model. Key assumptions used in the Black Scholes valuation model for the three months ended September 30, 2015 included an expected term of 6.0 years volatility of 63.7% , risk-free interest rate of 1.62% and a dividend yield of 0% . Between August 7, 2015 and September 1, 2015, the Company issued warrants to celebrity licensors , and entities affiliated with one of the celebrity licensors, to purchase up to an aggregate of 1,100 shares of the Company’s common stock, subject to adjustments for dividends, reorganizations and other common stock events (collectively, the “Celebrity Warrants”). With respect to warrants covering 1,000 shares, such warrants vest with respect to 50% of the underlying shares upon public announcement of the related license agreement, with the remaining shares vesting in equal monthly installments over 24 months, subject to full acceleration in the event of (1) the Company’s full recoupment of the minimum guarantee payments under the related license agreement, (2) the termination of the license agreement due to the Company’s material breach of the agreement or (3) a change of control of the Company. With respect to warrants covering 100 shares, such warrants vest in equal monthly installments over 60 months, with up to 25% of the shares subject to accelerated vesting in the event the celebrity licensor approves game design documentation by a certain date and the related game commercially launches by a certain date. Vesting of each of the warrants will immediately terminate in the event that the Company terminates the related license agreement due to the celebrity licensor’s material breach of such agreement . The Company will estimate and record the fair value of these warrants using a Black-Scholes valuation model when the above vesting conditions have been met. Each of the Celebrity Warrants may, at the election of the holder, be either exercised for cash or net exercised on a cashless basis. During the three months ended September 30, 2015 , the Company recorded a warrant compensation benefit of $31 , due to mark to market valuation. During the nine months ended September 30, 2015, the Company recorded a warrant compensation charge of $19 9 , which was included within cost of r evenue. MGM Warrants In July 2013, the Company and MGM Interactive Inc. (“MGM”) entered into a warrant agreement that provided MGM the right to purchase up to 3,333 shares of the Company’s common stock (the “MGM Warrant”), subject to adjustments for dividends, reorganizations and other common stock events. Of the 3,333 shares of the Company’s common stock underlying the MGM Warrant, 333 shares were immediately vested and exercisable on the warrant agreement effective date and the remaining shares would vest and become exercisable based on conditions related to the Company releasing mobile games based on mutually agreed upon intellectual property licensed by MGM to the Company, which includes the right to build games based on the James Bond and Hercules film franchises. During the three months ended September 30, 2014, and in connection with the vesting of warrants associated with the commercial release of the Hercules game, the Company recorded $1,126 of non-cash warrant related expense in cost of revenues as the game was not expected to generate meaningful revenues over its lifetime. Key assumptions used in the Black Scholes valuation model for the three months ended September 30, 2014 included an expected term of 5.00 years, volatility of 56.8% , a risk-free interest rate of 1.77% , and a dividend yield of 0% . During the three months ended September 30, 2015, 1,000 shares underlying the MGM Warrants vested in conjunction with the commercial release of the Company’s game, James Bond: World of Espionage , which occurred on September 29, 2015. During the three months ended September 30, 2015, the Company recorded $1,925 of non-cash warrant related expense in cost of revenues as the James Bond: World of Espionage game is not expected to generate meaningful revenues over its lifetime. Key assumptions used in the Black Scholes valuation model for the three months ended September 30, 2015 included an expected term of 2.79 years, volatility of 50.8% , a risk-free interest rate of 0.97% , and a dividend yield of 0% . During the nine months ended September 30, 2015 and 2014, respectively, warrant holders exercised warrants to purchase 450 and 1,190 shares of the Company’s common stock, respectively, and the Company received gross proceeds of $67 5 and $2,786 , respectively, in connection with these exercises. Warrants outstanding as of September 30, 2015 were as follows: Number of Shares Weighted Outstanding Average Average Under Exercise Contractual Warrants Price Term Warrants outstanding, December 31, 2014 $ Granted Exercised Warrants outstanding, September 30, 2015 $ |