Note 7 - Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

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, 2015 and 2014, respectively, by classification:

	Three Months Ended March 31,
Statement of Operations Classification	2015		2014
Costs of revenue	$	3,000	$	(600	)
Selling and marketing expense		29,300		5,900
General and administrative expense		168,100		137,200
Research and development expense		21,800		27,200
	$	222,200	$	169,700

The following table presents summaries of the status and activity of our stock option awards for the three-month period ended March 31, 2015.

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding – December 31, 2014		10,287,999		$	0.18
Granted		—			—
Exercised		(77,500	)		0.05
Forfeited or expired		—			—
Outstanding – March 31, 2015		10,210,499		$	0.18		7.07	$	194,100

Of the options outstanding as of March 31, 2015, 6,859,298 were vested, 3,304,385 were estimated to vest in future periods and 46,816 were estimated to be forfeited prior to their vesting. As of March 31, 2015, there was approximately $332,000 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, 2015. 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, 2014		4,314,983		$	0.18
Awarded		225,000			0.16
Released		(437,578	)		0.20
Forfeited		(80,221	)		0.17
Unreleased – March 31, 2015		4,022,184		$	0.17		2.27	$	580,900

As of March 31, 2015, there was approximately $580,900 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.