SHARE-BASED COMPENSATION - Note 5

6 Months Ended

Jun. 30, 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				Six Months Ended
		June 30,				June 30,
		2014		2013		2014		2013
Cost of contract revenue	$	-	$	-	$	-	$	4,000
Cost of product revenue		-		-		-		1,000
Research and development expense		(127,000)		(72,000)		(13,000)		88,000
Sales, marketing, general and administrative expense		328,000		168,000		519,000		388,000
Total share-based employee compensation expense	$	201,000	$	96,000	$	506,000	$	481,000

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 June 30, 2014:

				Weighted
				Average
			Weighted	Remaining
			Average	Contractual		Aggregate
			Exercise	Term		Intrinsic
Options	Shares		Price	(years)		Value
Outstanding as of June 30, 2014	2,522,000	$	6.68	7.8	$	287,000
Exercisable as of June 30, 2014	929,000	$	14.67	5.4	$	70,000

As of June 30, 2014, our unamortized share-based employee compensation was $1.4 million which we plan to amortize over the next 2.7 years and our unamortized share-based compensation related to restricted stock units was $89,000 which we plan to amortize over the next 0.9 years.