Restricted Stock

6 Months Ended

Jun. 30, 2015

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

Restricted Stock Awards

A summary of restricted stock awards granted, vested, forfeited and unvested outstanding as of, and changes made during, the six months ended June 30, 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	(242	)	1.62
Forfeited	(138	)	1.68
Unvested restricted shares outstanding, June 30, 2015	261		$	1.59

The number of shares of restricted stock awards vested during the six months ended June 30, 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 June 30, 2015.

Stock-based compensation expense related to restricted stock awards is allocated as follows for the three and six months ended June 30, 2015 and 2014 (in thousands):



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015			2014
Cost of revenue	$	2	$	7	$	(20	)	$	23
Research and development	1		3		(4		)	6
Sales and marketing	2		8		(29		)	10
General and administrative	33		28		32			100
	$	38	$	46	$	(21	)	$	139

During the three and six months ended June 30, 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 awards as of June 30, 2015 was $354,000. Of this amount, $199,000 relates to time-based awards with a remaining weighted average period of 1.54 years. The remaining $155,000 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 and six months ended June 30, 2015 or 2014. No compensation costs were capitalized as part of the cost of an asset during the periods presented.