Stock-Based Compensation

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2013 and 2012, respectively, by classification:

	Three Months Ended September 30,					Nine Months Ended September 30,
Statement of Operations Classification	2013			2012		2013		2012
Costs of revenue	$	(500	)	$	6,700	$	3,300	$	17,100
Selling and marketing expense		39,800			33,200		118,700		84,800
General and administrative expense		76,300			71,000		255,800		404,700
Research and development expense		74,400			82,600		202,700		252,400
	$	190,000		$	193,500	$	580,500	$	759,000

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

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding – June 30, 2013		13,134,398		$	0.20
Granted		23,000			0.44
Exercised		(708,594	)		0.18
Forfeited or expired		(77,745	)		0.20
Outstanding – September 30, 2013		12,371,059		$	0.20		6.12	$	4,161,600

The following table presents summaries of the status and activity of our stock option awards for the nine-month period ended September 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		23,000			0.44
Exercised		(1,459,972	)		0.17
Forfeited or expired		(232,151	)		0.20
Cancellation of unearned performance option		(133,818	)		0.19
Outstanding – September 30, 2013		12,371,059		$	0.20		6.12	$	4,161,600

Of the options outstanding as of September 30, 2013, 8,332,644 were vested, 3,906,226 were estimated to vest in future periods and 132,189 were estimated to be forfeited prior to their vesting.  As of September 30, 2013, there was approximately $239,100 of total unrecognized compensation cost, net of estimated forfeitures, related to unvested stock options. Such cost is expected to be recognized over a weighted-average period of approximately nine 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.

The following table presents summaries of the status and activity of our restricted stock awards for the three-month period ended September 30, 2013. We include the common stock underlying the restricted stock award in shares outstanding once such common stock has vested and the restriction has been removed (“releases” or “released”).The common stock vests ratably, over a 33-month period; however, no such shares vest until after three months from the date of the restricted stock award.

	Number of Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Recognition P eriod (Years)		Unrecognized Compensation Cost Remaining
Unreleased – June 30, 2013		3,796,324		$	0.22
Awarded		1,027,500			0.42
Released		(432,521	)		0.23
Forfeited		(265,157	)		0.27
Outstanding – September 30, 2013		4,126,146		$	0.26		2.15	$	918,400

The following table presents summaries of the status and activity of our restricted stock awards for the nine-month period ended September 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		1,607,500			0.42
Released		(1,208,412	)		0.21
Forfeited		(316,065	)		0.36
Outstanding – September 30, 2013		4,126,146		$	0.26		2.15	$	918,400

As of September 30, 2013, there was approximately $918,400 of total unrecognized compensation cost, net of estimated forfeitures, related to unreleased restricted stock awards. That cost is expected to be recognized over a weighted-average period of approximately twenty-six months.