Note 7 - Stock-Based Compensation

6 Months Ended

Jun. 30, 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 and six-month periods ended June 30, 2014 and 2013, respectively, by classification:

	Three Months Ended June 30,				Six Months Ended June 30,
Statement of Operations Classification	2014		2013		2014		2013
Costs of revenue	$	3,700	$	1,700	$	3,100	$	3,800
Selling and marketing expense		21,000		38,400		26,900		78,900
General and administrative expense		109,200		84,600		246,400		179,500
Research and development expense		26,600		80,000		53,800		128,300
	$	160,500	$	204,700	$	330,200	$	390,500

The following table presents summaries of the status and activity of our stock option awards for the three-month period ended June 30, 2014.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding – March 31, 2014		11,562,055		$	0.20
Granted		—			—
Exercised		(41,061	)		0.10
Forfeited or expired		(415,727	)		0.21
Outstanding – June 30, 2014		11,105,267		$	0.21		5.32	$	72,600

The following table presents summaries of the status and activity of our stock option awards for the six-month period ended June 30, 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		(256,818	)		0.19
Forfeited or expired		(657,243	)		0.21
Outstanding – June 30, 2014		11,105,267		$	0.21		5.32	$	72,600

Of the options outstanding as of June 30, 2014, 8,923,756 were vested, 2,097,337 were estimated to vest in future periods and 84,174 were estimated to be forfeited prior to their vesting. As of June 30, 2014, there was approximately $183,600 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, 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 June 30, 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 – March 31, 2014		2,677,820		$	0.31
Awarded		1,767,000			0.17
Released		(342,135	)		0.27
Forfeited		(477,228	)		0.34
Unreleased – June 30, 2014		3,625,457		$	0.24		2.24	$	749,100

The following table presents summaries of the status and activity of our restricted stock awards for the six-month period ended June 30, 2014.

	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		2,152,000			0.19
Released		(818,394	)		0.27
Forfeited		(1,646,575	)		0.26
Unreleased – June 30, 2014		3,625,457		$	0.24		2.24	$	749,100

As of June 30, 2014, there was approximately $749,100 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-seven months.