Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Stock based compensation

Summary of recognized stock based compensation

For the three and nine months ended September 30, 2014 and 2013, the Company recognized stock-based compensation as follows: 

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in 000’s)	2014		2013		2014		2013
Employee compensation:
Stock options	$	88	$	55	$	277	$	343
Employee warrants	43		31		133		90
Management restricted stock	10		2		112		19
Total employee stock-based compensation expense	$	141	$	88	$	522	$	452
Non-employee compensation
Board restricted stock	$	42	$	67	$	268	$	201
Board stock options	61		26		182		79
Subtotal non-employee stock-based compensation expense	$	103	$	93	$	450	$	280
Amortization of prepaid services	—		5		11		5
Total non-employee stock-based compensation expense	$	103	$	98	$	461	$	285
Total stock-based compensation expense	$	244	$	186	$	983	$	737

Schedule of assumptions used in calculating the fair value of warrants granted using the Black Sholes Merton option-pricing model

The assumptions used in calculating the fair value of non-employee common stock options and warrants granted during the nine months ended September 30, 2014 and 2013, using the Black-Scholes-Merton option-pricing model are set forth in the following table:

	Nine Months Ended September 30,
	2014		2013
Expected volatility	51.0	%	n/a
Expected life (in years)	5.0		n/a
Expected dividend yield	—		n/a
Risk-free interest rate	1.74	%	n/a

Summary of employee stock options activity

Activity with respect to employee stock options is summarized as follows: 

	Number of Shares (000's)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term(in years)	Aggregate Intrinsic Value (in 000’s)
Outstanding, December 31, 2013	1,804		$	4.54
Granted	55		$	4.23
Exercised	(115	)	$	3.71
Unvested options forfeited or cancelled	(411	)	$	4.24
Vested options expired	(189	)	$	4.37
Outstanding, September 30, 2014	1,144		$	4.74	7.2	$	604
Vested at September 30, 2014	675		$	5.20	6.5	$	295
Vested or expected to vest at September 30, 2014 (a)	1,063		$	4.79	7.1	$	554

^(a) Includes forfeiture adjusted unvested shares.

Shares authorized under stock option plans, by exercise price range

The following summary information reflects stock options outstanding, vested and expected to vest, and related details as of September 30, 2014:

	Stock Options Outstanding				Options Exercisable
Exercise Price	Number Outstanding (000's)	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price		Vested and Expected to Vest (000's)	Weighted Average Exercise Price
$1.30	16	1.1	$	1.30	16	$	1.30
$1.31 - $3.99	323	5.3	$	3.93	305	$	3.93
$4.00 - $4.30	450	8.5	$	4.12	395	$	4.12
$4.31 - $4.99	40	8.7	$	4.51	32	$	4.52
$5.00 - $7.62	315	7.3	$	6.67	315	$	6.67
Total	1,144	7.2	$	4.74	1,063	$	4.79

Summary of restricted stock activity

Activity with respect to restricted stock is summarized as follows: 

	Number of Shares (000's)		Weighted Avg. Grant Date Fair Value
Unvested at December 31, 2013	314		$	3.31
Granted	—		$	—
Vested	(10	)	$	4.34
Forfeited	—		$	—
Unvested at September 30, 2014	304		$	3.28

Outstanding options & warrants by individual price

The table below reflects the outstanding options and warrants by exercise price:

Options (000's)	Employee Warrants (000's)	Non-employee Warrants (000's)	Exercise Price
	203		$	1.04
16			$	1.30
		13	$	1.73
	199		$	1.93
	222		$	2.57
	212		$	2.59
	222		$	3.43
	116		$	3.46
	276		$	3.75
		50	$	3.80
		548	$	3.81
32			$	3.86
191	105		$	3.93
100		85	$	3.96
20			$	4.05
272			$	4.06
		55	$	4.08
57			$	4.11
101			$	4.30
	116		$	4.32
15			$	4.33
		16	$	4.37
		49	$	4.50
	105		$	4.58
25			$	4.61
105			$	5.71
	70		$	5.90
105			$	6.67
105			$	7.62
1,144	1,846	816

Employee | Warrant

Stock based compensation

Schedule of assumptions used in calculating fair value of options using the Black Scholes Merton option-pricing model

The assumptions used in calculating the fair value of employee common stock options and warrants granted during the nine months ended September 30, 2014 and 2013, using the Black-Scholes-Merton option-pricing model are set forth in the following table:

	Nine Months Ended September 30,
	2014		2013
Expected volatility	51.0	%	60.0	%
Expected life (in years)	5.2		5.2
Expected dividend yield	—		—
Risk-free interest rate	1.73	%	0.71	%

Summary of common stock warrants activity

Activity with respect to employee common stock warrants is summarized as follows: 

	Number of Shares (000's)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in 000’s)
Outstanding, December 31, 2013	1,876		$	3.09
Granted	—		$	—
Exercised	(30	)	$	2.54
Unvested warrants forfeited or cancelled	—		$	—
Vested warrants expired	—		$	—
Outstanding, September 30, 2014	1,846		$	3.10	4.1	$	3,112
Vested at September 30, 2014	1,694		$	2.94	3.8	$	3,073
Vested or expected to vest at September 30, 2014 (a)	1,836		$	3.09	4.1	$	3,111

^(a) Includes forfeiture adjusted unvested shares.

Nonemployee | Warrant

Stock based compensation

Summary of common stock warrants activity

Activity with respect to non-employee common stock warrants is summarized as follows:    

	Number of Shares (000's)		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term(in years)	Aggregate Intrinsic Value (000's)
Outstanding, December 31, 2013	1,989		$	3.84
Granted	49		$	4.50
Exercised	(897	)	$	3.62
Unvested warrants forfeited or cancelled	—		$	—
Vested warrants expired	(325	)	$	4.51
Outstanding, September 30, 2014	816		$	3.86	1.8	$	716
Vested at September 30, 2014	816		$	3.86	1.8	$	716
Vested or expected to vest at September 30, 2014 (a)	816		$	3.86	1.8	$	716