Note 7 - Stock-Based Compensation

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2014 and 2013, respectively, by classification:

	Three Months Ended September 30,					Nine Months Ended September 30,
Statement of Operations Classification	2014		2013			2014		2013
Costs of revenue	$	1,700	$	(500	)	$	4,800	$	3,300
Selling and marketing expense		20,900		39,800			47,800		118,700
General and administrative expense		58,100		76,300			304,500		255,800
Research and development expense		6,100		74,400			59,900		202,700
	$	86,800	$	190,000		$	417,000	$	580,500

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

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding – June 30, 2014		11,105,267		$	0.21
Granted		-			-
Exercised		-			-
Forfeited or expired		(1,445,985	)		0.16
Outstanding – September 30, 2014		9,659,282		$	0.22		5.44	$	55,400

The following table presents summaries of the status and activity of our stock option awards for the nine-month period ended September 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		(2,103,228	)		0.19
Outstanding – September 30, 2014		9,659,282		$	.22		5.44	$	55,400

Of the options outstanding as of September 30, 2014, 8,156,814 were vested, 1,448,682 were estimated to vest in future periods and 53,786 were estimated to be forfeited prior to their vesting. As of September 30, 2014, there was approximately $127,300 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, 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, 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 – June 30, 2014		3,625,457		$	0.24
Awarded		-			-
Released		(313,388	)		0.24
Forfeited		(635,202	)		0.32
Outstanding – September 30, 2014		2,676,867		$	0.22		2.09	$	679,600

The following table presents summaries of the status and activity of our restricted stock awards for the nine-month period ended September 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		$	0.24
Awarded		2,152,000			0.19
Released		(1,131,782	)		0.26
Forfeited		(2,281,777	)		0.27
Outstanding – September 30, 2014		2,676,867		$	0.22		2.09	$	679,600

As of September 30, 2014, there was approximately $679,600 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 24 months.