Restricted Stock (Restricted Stock [Member])

3 Months Ended

Mar. 31, 2015

Restricted Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock

Restricted Stock

A summary of restricted stock granted, vested, forfeited and unvested outstanding as of, and changes made during, the three months ended March 31, 2015, is presented below (shares in thousands):

	Restricted Shares		Weighted Average Grant Price
Unvested restricted shares outstanding, December 31, 2014	641		$	1.61
Granted	—		—
Vested	(234	)	1.62
Forfeited	(96	)	1.68
Unvested restricted shares outstanding, March 31, 2015	311		$	1.59

The number of shares of restricted stock vested during the three months ended March 31, 2015 includes 139,000 shares withheld and repurchased by the Company on behalf of employees and members of the Board to satisfy $139,000 of tax obligations relating to the vesting of such shares. Such shares are held in the Company's treasury stock as of March 31, 2015.

Stock-based compensation expense related to restricted stock is allocated as follows for the three months ended March 31, 2015 and 2014 (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Cost of revenue	$	(22	)	$	16
Research and development	(5		)	3
Sales and marketing	(31		)	2
General and administrative	(1		)	71
	$	(59	)	$	92

During the three months ended March 31, 2015, the Company recorded a reversal of $88,000 in stock-based compensation expense of which $26,000 related to expense for unvested awards that were forfeited and $62,000 related to revised estimates for expense previously recorded on performance-based awards.

Certain restricted stock awards have performance-based vesting provisions and are subject to forfeiture, in whole or in part, if these performance conditions are not achieved. Management assesses, on an ongoing basis, the probability of whether the performance criteria will be achieved and, once it is deemed probable, compensation expense is recognized over the relevant performance period. For those awards not subject to performance criteria, the cost of the restricted stock awards is expensed, which is determined to be the fair market value of the shares at the date of grant, on a straight-line basis over the vesting period. 

The remaining unrecognized stock-based compensation expense for restricted stock as of March 31, 2015 was $453,000. Of this amount, $255,000 relates to time-based awards with a remaining weighted average period of 2.09 years. The remaining $198,000 of unrecognized stock based compensation expense relates to performance-based awards for which expense will be recognized upon the Company achieving defined revenue targets and other financial goals and will expire 10 years from the grant date.

There was no tax benefit recognized for stock-based compensation for the three months ended March 31, 2015 or 2014. No compensation costs were capitalized as part of the cost of an asset during the periods presented.