Note 4 - Stock Benefit Plans

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4.    Stock Benefit Plans

The Company grants stock options and other stock-based awards to employees, directors and consultants under two equity incentive plans, the 2004 Equity Incentive Plan, as amended and restated on August 20, 2008 and as further amended thereafter (the “2004 Equity Incentive Plan”) and the 2006 Director Plan, as amended.

As of March 31, 2013, the Company had an aggregate of 1.8 million shares of its common stock reserved for issuance under its 2004 Equity Incentive Plan, of which 0.1 million shares were subject to outstanding options and other stock-based awards and 1.7 million shares were available for future grants of options and other stock-based awards. As of March 31, 2013, the Company had an aggregate of 0.5 million shares of its common stock reserved for issuance under its 2006 Director Plan, of which 0.1 million shares were subject to outstanding options and other stock-based awards and 0.4 million shares were available for future grants of options and other stock-based awards.

Stock Benefit Plan Activities

Stock Options: A summary of option activity under all of the Company’s equity incentive plans as of March 31, 2013 and changes during the three-month period then ended is as follows:

	Shares		Weighted Average Exercise Price		Weighted Average Contractual Term (Years)		Aggregate Intrinsic Value
	(in thousands)
Outstanding at December 31, 2012		65	$	30.93
Granted		-	$	-
Exercised		-	$	-
Forfeited		-	$	-
Expired		-	$	-
Outstanding at March 31, 2013		65	$	30.93		7.51	$	4,647.50
Options vested and expected to vest at March 31, 2013		65	$	30.93		7.51	$	4,647.50
Options exerxcisable at March 31, 2013		49	$	31.81		7.05	$	1,746.66

The aggregate intrinsic value is calculated as the difference between the closing price of the Company’s common stock on the OTCQB Market and the exercise price of the underlying awards for the 1,354 shares subject to options that were in-the-money as of March 31, 2013. During both three-month periods ended March 31, 2013 and 2012, the aggregate intrinsic value of options exercisable under the Company’s equity incentive plans was immaterial. As of March 31, 2013, the total unamortized stock-based compensation expense related to non-vested stock options, net of estimated forfeitures, was immaterial.

Restricted Stock: Restricted stock awards and restricted stock units (collectively, “restricted stock”) were granted under the Company’s 2004 Equity Incentive Plan and 2006 Director Plan. As of March 31, 2013, there were 85,906 shares of service-based restricted stock awards and 16,532 shares of restricted stock units outstanding. The cost of restricted stock, determined to be the fair market value of the shares at the date of grant, is expensed ratably over the period the restrictions lapse. Certain non-employee directors received restricted stock shares that will vest immediately if the relationship between the Company and the non-employee director ceases for any reason. These non-vested shares are recognized and fully expensed as stock-based compensation expense at the date of grant.

A summary of activity for restricted stock units as of March 31, 2013 and changes during the three-month period then ended is as follows:.

	Shares			Weighted Average Grant-Date Fair Value
	(in thousands)
Non-vested restricted stock units at December 31, 2012		17		$	0.01
Awarded		-		$	-
Vested		(1	)	$	0.01
Forfeited		-		$	-
Non-vested restricted stock units at March 31, 2013		16		$	0.002

As of March 31, 2013, the total unamortized stock-based compensation expense related to non-vested restricted stock that is expected to vest, net of estimated forfeitures, was immaterial.

Stock-Based Compensation

The Company measures and recognizes stock-based compensation expense for all stock-based awards made to its employees, directors and consultants based on estimated fair values using a straight-line amortization method over the respective requisite service period of the awards and adjusted it for estimated forfeitures. In addition, the Company applies the simplified method to establish the beginning balance of the additional paid-in capital pool related to the tax effects of employee stock-based compensation, which is available to absorb tax shortfalls.

Stock-based compensation expense included in the Condensed Statements of Operations for the three-month periods ended March 31, 2013 and 2012 were as follows:

	Three-month Period Ended March 31,
	2013		2012
	(in thousands)
Stock-based compensation expense by caption
Selling, general and administrative	$	620	$	25
Effect on income (loss) from continuing operations	$	620	$	25
Stock-based compensation expense by award type:
Stock options	$	25	$	16
Restricted stock		595		9
Effect on income (loss) from continuing operations	$	620	$	25

The stock-based compensation expense in the above table does not reflect any significant tax expense, which is consistent with the Company’s treatment of income or loss from operations. For the three-month periods ended March 31, 2013 and 2012, there were no income tax benefits realized for the tax deductions from option exercises of the stock-based payment arrangements. In addition, there was no stock-based compensation costs capitalized as part of an asset in the three-month periods ended March 31, 2013 and 2012.

Valuation Assumptions

The Company uses the Black-Scholes option pricing model for determining the estimated fair value for all stock-based awards. No grants were made in the three-month periods ended March 31, 2013 and 2012, for stock options and other stock-based awards.