Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [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, 2015 and 2014, respectively, by classification:

	Three Months Ended  September 30,				Nine Months Ended September 30,
Statement of Operations Classification	2015		2014		2015		2014
Costs of revenue	$	2,100	$	1,700	$	7,100	$	4,800
Selling and marketing expense		75,600		20,900		134,400		47,800
General and administrative expense		121,700		58,100		420,300		304,500
Research and development expense		25,800		6,100		75,800		59,900
	$	225,200	$	86,800	$	637,600	$	417,000

The following table presents summaries of the status and activity of our stock option awards for the three-month period ended September 30, 2015.

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual  Terms (Years)		Aggregate Intrinsic Value
Outstanding – June 30, 2015		9,721,181	$	0.18
Granted		868,669		0.12
Exercised		—		—
Forfeited or expired		—		—
Outstanding – September 30, 2015		10,589,850	$	0.18		7.16	$	34,100

The following table presents summaries of the status and activity of our stock option awards for the nine-month period ended September 30, 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		868,669			0.12
Exercised		(90,000	)		0.17
Forfeited or expired		(476,818	)		0.22
Outstanding – September 30, 2015		10,589,850		$	0.18		7.16	$	34,100

Of the options outstanding as of September 30, 2015, 7,153,443 were vested, 3,410,358 were estimated to vest in future periods and 26,049 were estimated to be forfeited prior to their vesting. As of September 30, 2015, there was approximately $240,200 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, 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, 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, 2015		3,444,380		$	0.17
Awarded		-			-
Released		(541,876	)		0.25
Forfeited		(794,754	)		0.16
Outstanding – September 30, 2015		2,107,750		$	0.16		2.06	$	282,600

The following table presents summaries of the status and activity of our restricted stock awards for the nine-month period ended September 30, 2015.

	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		(1,497,288	)		0.21
Forfeited		(934,945	)		0.16
Outstanding – September 30, 2015		2,107,750		$	0.16		2.06	$	282,600

As of September 30, 2015, there was approximately $282,600 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.