Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

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-month periods ended March 31, 2013 and 2012, respectively, by classification:

	Three Months Ended March 31,
Statement of Operations Classification	2013		2012
Costs of revenue	$	2,100	$	6,300
Selling and marketing expense		40,500		26,400
General and administrative expense		94,900		73,100
Research and development expense		48,300		83,600
	$	185,800	$	189,400

The following table presents summaries of the status and activity of our stock option awards for the three-month period ended March 31, 2013.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)	Aggregate Intrinsic Value
Outstanding – December 31, 2012		14,174,000		$	0.20
Granted		—			—
Exercised		(431,500	)		0.14
Forfeited or expired		—			—
Outstanding – March 31, 2013		13,742,500		$	0.20	7.14	$5,897,500

Of the options outstanding as of March 31, 2013, 7,627,407 were vested, 5,895,614 were estimated to vest in future periods and 219,479 were estimated to be forfeited prior to their vesting.  As of March 31, 2013, there was approximately $457,100 of total unrecognized compensation cost, net of estimated forfeitures, related to stock-based compensation attributable to unvested stock options. Such cost is expected to be recognized over a weighted-average period of approximately eleven months.

All options are exercisable immediately upon grant.  Options vest, 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.

During the three-month period ended March 31, 2013, we awarded 385,000 shares of restricted common stock, which vest ratably, over a 33-month period; however, no shares vest until after three months from the date of the restricted stock award. We include the common stock underlying the restricted stock award in shares outstanding once the common stock underlying the restricted stock award has vested and the restriction has been removed ("releases" or "released").

The following table presents summaries of the status and activity of our restricted stock awards for the three-month period ended March 31, 2013.  We did not issue any restricted stock awards during the three-month period ended March 31, 2012.

	Number of Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Recognition Period (Years)	Unrecognized Compensation Cost Remaining
Unreleased – December 31, 2012		4,043,123		$	0.18
Awarded		385,000			0.45
Released		(362,031	)		0.18
Forfeited		—			—
Outstanding – March 31, 2013		4,066,092		$	0.21	2.39	$       779,700

As of March 31, 2013, there was approximately $730,200 of total unrecognized compensation cost, net of estimated forfeitures, related to stock-based compensation attributable to the unreleased restricted stock awards. That cost is expected to be recognized over a weighted-average period of approximately twenty-nine months.