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Stock-Based Compensation Plans
6 Months Ended
Jun. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation Plans

(6) STOCK-BASED COMPENSATION PLANS

The Company has reserved 3,000,000 shares of common stock for issuance under its 2005 Stock Option Plan (the “Option Plan”). Vesting provisions are determined by the Board of Directors. All stock options under the Option Plan expire no later than ten years from the date of grant.

In the three months ended June 30, 2014 and 2013, the Company recorded compensation expense related to stock options of $25 and $33, respectively. Stock-based compensation recorded in the accompanying condensed consolidated statement of operations for the three months ended June 30, 2014 and 2013 included $2 and $4, respectively, in cost of goods sold and $23 and $29, respectively, in selling, general and administrative expenses.

In the six months ended June 30, 2014 and 2013, the Company recorded compensation expense related to stock options of $55 and $69, respectively. Stock-based compensation recorded in the accompanying condensed consolidated statement of operations for the six months ended June 30, 2014 and 2013 included $4 and $7, respectively, in cost of goods sold and $51 and $62, respectively, in selling, general and administrative expenses.

In the six months ended June 30, 2014, the Company granted options to purchase up to 50,000 shares of common stock to employees at a weighted average exercise price of $0.34 .

The Company used the Black Scholes option pricing model to determine the fair value of stock option grants, using the following assumptions during the six months ended June 30, 2014:

 

 

2014

 

Weighted average expected term

6.25 years

 

Weighted average volatility

114%

 

Weighted average risk-free interest rate

1.5%

 

Dividend yield

0%

 

 

A summary of stock option activity under the Option Plan for the six months ended June 30, 2014 is presented below:

 

 

Shares
Under
Option

 

  

Weighted
Average
Exercise
Price

 

  

Weighted
Average
Remaining
Contractual
Life

 

  

Aggregate
Intrinsic
Value

 

Outstanding at January 1, 2014

 

2,472,216

 

 

$

0.57

 

 

 

 

 

 

 

 

 

Granted

 

50,000

 

 

$

0.34

 

 

 

 

 

 

 

 

 

Exercised

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forfeited

 

(919,822

)

 

$

0.29

 

 

 

 

 

 

 

 

 

Outstanding at June 30, 2014

 

1,602,394

 

 

$

0.66

 

 

 

7.1 years

 

 

$

 

Exercisable at June 30, 2014

 

801,875

 

 

$

1.00

 

 

 

5.2 years

 

 

$

 

A summary of status of the Company’s non-vested share awards as of and for the six months ended June 30, 2014 is presented below:

 

 

Nonvested Shares
Under Option

 

  

Weighted Average
Grant Date Fair Value

 

Non-vested at January 1, 2014

 

1,663,593

 

 

$

0.29

 

Granted

 

50,000

 

 

$

0.29

 

Vested

 

(90,002

)

 

$

0.69

 

Forfeited

 

(823,072

)

 

$

0.25

 

Non-vested at June 30, 2014

 

800,519

 

 

$

0.28

 

As of June 30, 2014, the Company had approximately $146 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of approximately 3.02 years.