SHARE-BASED COMPENSATION - Note 5

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs

Share-Based Compensation - Note 5

5. SHARE-BASED COMPENSATION

We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The following table shows the amount of share-based compensation expense included in the consolidated statements of operations:

		Three Months Ended
Share-based compensation		March 31,
		2014		2013
Cost of contract revenue	$	-	$	4,000
Cost of product revenue		-		1,000
Research and development expense		114,000		160,000
Sales, marketing, general and administrative expense		191,000		220,000
Total share-based compensation expense	$	305,000	$	385,000

Options Activity and Positions

The following table summarizes shares, weighted average exercise price, weighted average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of March 31, 2014:

				Weighted
				Average
			Weighted	Remaining
			Average	Contractual		Aggregate
			Exercise	Term		Intrinsic
Options	Shares		Price	(years)		Value
Outstanding as of March 31, 2014	1,860,000	$	8.78	7.4	$	85,000
Exercisable as of March 31, 2014	903,000	$	15.38	5.6	$	46,000

As of March 31, 2014, our unamortized share-based employee compensation related to stock options was $1.0 million which we plan to amortize over the next 2.1 years and our unamortized share-based compensation related to the restricted stock units was $82,000 which we plan to amortize over the next 0.3 years.