Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

A summary of warrant activity for the six months ended June 30, 2015 is shown as follows:



	Warrants Outstanding		Weighted Average Exercise Price During Period
Outstanding at December 31, 2014	969,549		$	4.61
Exercised	(582,549	)	4.30
Canceled/forfeited	(55,000	)	4.30
Expired	(240,000	)	5.34
Outstanding at June 30, 2015	92,000		$	4.86

Summary of stock-based compensation expense

The following table summarizes stock-based compensation expense and the impact it had on operations for the periods indicated (in thousands):



	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
Cost of sales	$	15	$	4	$	18	$	6
Product development	13		3		16		2
Selling, general, and administrative	144		128		250		250
Total stock-based compensation	$	172	$	135	$	284	$	258

Schedule of valuation assumptions

Estimates utilized in the calculation include the expected life of the option, risk-free interest rate, and expected volatility, and are further comparatively detailed as follows:



	Six months ended June 30,
	2015			2014
Fair value of options issued	$	4.11		$	3.34
Exercise price	$	5.54		$	4.34
Expected life of option (in years)	5.8 years			5.6 years
Risk-free interest rate	1.7		%	1.8		%
Expected volatility	88.3		%	98.1		%
Dividend yield	0.0		%	0.0		%

Summary of option activity

A summary of option activity under all plans for the six months ended June 30, 2015 is shown as follows:



	Number of Option		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)
Outstanding at December 31, 2014	459,271		$	8.95
Granted	223,500		5.54
Exercised	(10,393	)	3.71
Canceled/forfeited	(78,008	)	6.02
Expired	(5,900	)	96.00
Outstanding at June 30, 2015	588,470		$	7.26	8.3 years

Vested and expected to vest at June 30, 2015	531,671		$	7.45	8.2 years

Exercisable at June 30, 2015	303,011		$	9.00	7.4 years

Restricted stock units

A summary of restricted stock unit activity under all plans for the six months ended June 30, 2015 is shown as follows:



	Restricted Stock Units		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (in years)
Outstanding at December 31, 2014	—		$	—
Granted	62,750		5.50
Canceled/forfeited	(5,500	)	5.47
Outstanding at June 30, 2015	57,250		$	5.51	1.7 years

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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