Stock-Based Compensation

6 Months Ended

Jun. 30, 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 and six-month periods ended June 30, 2013 and 2012, respectively, by classification:

	Three Months Ended June 30,				Six Months Ended June 30,
Statement of Operations Classification	2013		2012		2013		2012
Costs of revenue	$	1,700	$	4,100	$	3,800	$	10,400
Selling and marketing expense		38,400		25,200		78,900		51,600
General and administrative expense		84,600		260,600		179,500		333,700
Research and development expense		80,000		86,200		128,300		169,800
	$	204,700	$	376,100	$	390,500	$	565,500

The following table presents summaries of the status and activity of our stock option awards for the three-month period ended June 30, 2013.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)	Aggregate Intrinsic Value
Outstanding – March 31, 2013		13,742,500		$	0.20
Granted		—			—
Exercised		(319,878	)		0.15
Forfeited or expired		(154,406	)		0.21
Cancellation of unearned performance option		(133,818	)		0.19
Outstanding – June 30, 2013		13,134,398		$	0.20	6.67	$2,082,500

The following table presents summaries of the status and activity of our stock option awards for the six-month period ended June 30, 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		(751,378	)		0.15
Forfeited or expired		(154,406	)		0.21
Cancellation of unearned performance option		(133,818	)		0.23
Outstanding – June 30, 2013		13,134,398		$	0.20	6.67	$2,082,500

Of the options outstanding as of June 30, 2013, 8,177,325 were vested, 4,786,187 were estimated to vest in future periods and 170,886 were estimated to be forfeited prior to their vesting.  As of June 30, 2013, there was approximately $342,800 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 and six-month periods ended June 30, 2013, we awarded 145,000 and 580,000 shares of restricted common stock respectively, 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 June 30, 2013.  We did not issue any restricted stock awards during the three-month period ended June 30, 2012.

	Number of Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Recognition Period (Years)	Unrecognized Compensation Cost Remaining
Unreleased – March 31, 2013		4,066,092		$	0.21
Awarded		145,000			0.40
Released		(414,858	)		0.21
Forfeited		—			—
Outstanding – June 30, 2013		3,796,234		$	0.22	2.17	$       747,200

The following table presents summaries of the status and activity of our restricted stock awards for the six-month period ended June 30, 2013.

	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		580,000			0.43
Released		(776,889	)		0.20
Forfeited		(50,000	)		0.36
Outstanding – June 30, 2013		3,796,234		$	0.22	2.17	$       747,200

As of June 30, 2013, there was approximately $706,200 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-six months.