Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

7.  Stock-Based Compensation

The following table summarizes the stock-based compensation expense, net of amounts capitalized, we recorded in our Unaudited Condensed Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2012 and 2011, respectively, by classification:

	Three Months Ended September 30,					Nine Months Ended September 30,
Statement of Operations Classification	2012		2011			2012		2011
Costs of revenue	$	6,700	$	300		$	17,100	$	2,300
Selling and marketing expense		33,200		(6,200	)		84,800		2,700
General and administrative expense		71,000		28,700			404,700		46,300
Research and development expense		82,600		14,000			252,400		20,100
	$	193,500	$	36,800		$	759,000	$	71,400

The following table presents summaries of the status and activity of our stock option awards for the three-month period ended September 30, 2012.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding – June 30, 2012		14,161,715		$	0.19
Granted		700,000			0.15
Exercised		(436,363	)		0.08
Forfeited or expired		(902,991	)		0.19
Outstanding – September 30, 2012		13,522,361		$	0.19		7.31	$	1,472,800

The following table presents summaries of the status and activity of our stock option awards for the nine-month period ended September 30, 2012.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding – December 31, 2011		11,636,694		$	0.18
Granted		4,612,500			0.20
Exercised		(567,176	)		0.08
Forfeited or expired		(2,159,657	)		0.20
Outstanding – September 30, 2012		13,522,361		$	0.19		7.31	$	1,472,800

The weighted average fair value of options granted during the three and nine-month periods ended September 30, 2012 was $0.13 and $0.16, respectively. Of the options outstanding as of September 30, 2012, 5,975,242 were vested, 7,309,111 were estimated to vest in future periods and 238,008 were estimated to be forfeited prior to their vesting.

All options are exercisable immediately upon grant. Options vest, generally, ratably over a 33-month period commencing in the fourth month after the grant date. We have the right to repurchase common stock issued upon the exercise of an option upon an optionee's termination of service to us prior to full vesting at the option's exercise price.

The following table presents summaries of the status and activity of our restricted stock awards for the three and nine-month periods ended September 30, 2012.

	Number of Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Recognition Period (Years)		Unrecognized Compensation Cost Remaining
Outstanding – December 31, 2011 and June 30, 2012		—	$	—
Awarded		3,964,500		0.18
Released		—		—
Forfeited		—		—
Outstanding – September 30, 2012		3,964,500	$	0.18		2.87	$	693,800

As of September 30, 2012, there was approximately $1,202,200 of total unrecognized compensation cost, net of estimated forfeitures, related to stock-based compensation attributable to all the outstanding stock options and restricted stock awards. That cost is expected to be recognized over a weighted-average period of approximately twenty six months.