Share-based compensation

6 Months Ended

Jun. 30, 2013

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

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

Note 11: Share-based compensation

Recent Employment Agreement

On June 6, 2013, the Company entered into an agreement (the “Agreement”) with Michael Haller to serve as the Company’s Executive Vice President. The Agreement is for a one year term with a renewal option for additional one year terms. He is also entitled to certain shares of common stock and a cash bonus upon the achievement of certain milestones and vesting schedule as set forth in his Agreement. The Company will record stock compensation expense when it is probable that the milestones and vesting are to be achieved.

Issuance of restricted shares

The Company in periods preceding January 1, 2013 made grants of restricted shares vest one-third each six months from date of issue, except for a specific grant made on December 26, 2012, which vests three and eight months from the date of grant subject to the attainment of certain performance conditions which were achieved in March 2013. The restricted shares are valued using the closing market price on date of grant, of which the share-based compensation expense is recognized over their vesting period. For the three and six months ended June 30, 2013, and 2012, stock based compensation to employees and directors was $346 and $197, respectively and $705 and $229, respectively. 

A summary of the Company’s restricted stock as of June 30, 2013 is presented below:

	Number of shares		Weighted average grant date fair value
Non-vested at December 31, 2012		314,667	$	5.20
Granted		-		-
Vested		(137,331)		5.35
Forfeited		–		–
Non-vested at June 30, 2013		177,336	$	5.08

Unrecognized compensation cost

As of June 30, 2013 and 2012, unrecognized compensation costs related to non-vested share-based compensation arrangements was $831 and $1,281, respectively. That cost is expected to be recognized over a weighted average period of 0.70 years.

The Company has recorded the following amounts related to its share-based compensation expense in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss:

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
Selling, general and administrative	$	346	$	197	$	705	$	222
Research and development		-		–		-		7
	$	346	$	197	$	705	$	229

Of the stock-based expense for the three and six months ended June 30, 2013, and 2012, $nil and $15, respectively, was allocated to non-controlling interest.

Warrants

The following table summarizes information about warrants outstanding at June 30, 2013:

	Number of shares		Weighted average exercise price
Warrants outstanding at December 31, 2012		4,038,753	$	3.68
Issued		–		–
Exercised		(1,022,946)		3.59
Expired		–		–
Warrants outstanding at June 30, 2013		3,015,807	$	3.71

For the six months ended June 30, 2013, all issued warrants are exercisable and expire through 2017. There were no warrants issued for the six months ended June 30, 2012. On April 26, 2013, the Company made an offer to the holders of the Company’s $3.85 Common Stock Purchase Warrants (the “Warrants”), which are held by a limited number of accredited investors providing if such investors exercised one Warrant, they would have the right to exchange up to two additional Warrants (for each Warrant exercised) for 5/8ths per share of Common Stock per Warrant exchanged. The results of the offer were that holders of 715,742 Warrants elected to exercise their Warrants.

In addition, the allowed maximum of 1,431,486 Warrants was exchanged for 894,683 shares of the Company’s Common Stock, issuable upon NYSE MKT approval by no later than June 30, 2013. No shares were approved or issued as of June 30, 2013. Accordingly, the warrant holders are entitled to exercise their warrants pursuant to their original terms with no further effect. Total proceeds received from the exercise of 715,742 Warrants were $2,756.

During the three and six months ending June 30, 2013, 307,204 of the Company’s $3.00 Common Stock Purchase Warrants were exercised. Of the warrant conversions, 210,529 were cashless and 96,675 were exercised for total proceeds of $290.