Note 7 - Stock-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

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, 2014 and 2013, respectively, by classification:

	Three Months Ended March 31,
Statement of Operations Classification	2014			2013
Costs of revenue	$	(600	)	$	2,100
Selling and marketing expense		5,900			40,500
General and administrative expense		137,200			94,900
Research and development expense		27,200			48,300
	$	169,700		$	185,800

The following table presents summaries of the status and activity of our stock option awards for the three-month period ended March 31, 2014.

	Number of Shares			Weighted  Average  Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding – December 31, 2013		12,019,328		$	0.21
Granted		—			—
Exercised		(215,757	)		0.20
Forfeited or expired		(241,516	)		0.20
Outstanding – March 31, 2013		11,562,055		$	0.20		5.37	$	246,800

Of the options outstanding as of March 31, 2014, 8,752,638 were vested, 2,696,533 were estimated to vest in future periods and 112,884 were estimated to be forfeited prior to their vesting. As of March 31, 2014, there was approximately $255,100 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 ten months.

All options are exercisable immediately upon grant. Options vest ratably, generally 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 March 31, 2014. 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, generally over a 33-month period commencing in the fourth month after the award date. 

	Number of Shares			Weighted  Average Grant Date Fair Value		Weighted Average Remaining Recognition  Period (Years)		Unrecognized Compensation Cost  Remaining
Unreleased – December 31, 2013		3,938,426		$	0.28
Awarded		385,000			0.30
Released		(476,259	)		0.28
Forfeited		(1,169,347	)		0.22
Unreleased – March 31, 2014		2,677,820		$	0.31		2.03	$	674,400

As of March 31, 2014, there was approximately $674,400 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.