Stock-Based Compensation

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

8. STOCK-BASED COMPENSATION

     Our share-based incentive plans permit us to grant restricted stock units, restricted stock, incentive or non-qualified stock options, and certain other instruments to employees, directors, consultants and advisors of the Company. Certain stock options and restricted stock units vest in accordance with the achievement of specific company objectives. The exercise price of options granted under the plan must be at least equal to the fair value of our common stock on the date of grant. All options granted vest at a rate determined by the Nominating and Compensation Committee of our Board of Directors and are exercisable for varying periods, not to exceed ten years. Shares issued under the plans upon option exercise or stock unit conversion are generally issued from authorized, but previously unissued shares.

     As of December 31, 2012, 5,806,834 shares of common stock were available for grant under our current plan. We are authorized to issue up to 12,211,373 plan equivalent shares of common stock in relation to stock options or restricted shares outstanding or available for grant under the plans.

Stock Options

The number and weighted average exercise price of stock options outstanding are as follows:

	Shares			Weighted
	Under			Average Price
	Stock Options			Per Share
OUTSTANDING AT DECEMBER 31, 2011	8,007,874		$	1.79
Granted at market price	-			-
Exercised	(96,000	)	$	0.66
Expired or forfeited	(1,507,335	)	$	1.54
OUTSTANDING AT DECEMBER 31, 2012	6,404,539		$	1.87

The following table summarizes information about stock options outstanding at December 31, 2012:

					Options Outstanding				Options Exercisable
											Weighted
					Options		Weighted	Weighted Average			Average
	Range of						Average	Remaining	Options		Exercise Price
	Exercise Price				Outstanding		Exercise Price	Contractual Life	Exercisable		Per Share
$	0.66	-	$	0.66	4,611,481	$	0.66	5.58	4,611,481	$	0.66
$	1.41	-	$	1.55	50,000		1.41	8.58	50,000		1.41
$	1.62	-	$	2.89	817,136		2.58	2.50	817,136		2.58
$	3.19	-	$	6.88	675,228		6.47	1.83	675,228		6.47
$	7.10	-	$	9.67	225,694		9.43	2.88	225,694		9.43
$	10.51	-	$	10.51	25,000		10.51	2.59	25,000		10.51
					6,404,539	$	1.87		6,404,539	$	1.87

     A total of 6,404,539 stock options with a weighted average exercise price of $1.87 were outstanding and fully vested at December 31, 2012. A total of 3,615,700 and 3,657,950 stock options with a weighted average exercise price of $0.67 and $0.66 were outstanding at December 31, 2011 and 2010, respectively, which had not vested.

     There were no stock options granted for the years ended December 31, 2012 and 2010. During 2011, 50,000 shares were granted.

     Non-cash compensation cost related to stock and stock options and restricted stock recognized during the years ended December 31, 2012, 2011 and 2010 was $508,000, $562,000 and $1,719,000, respectively.

     The total intrinsic value of options exercised (i.e. the difference between the market price on the exercicse date and the price paid by the employee to exercise the options) during the years ended December 31, 2012, 2011 and 2010 was $36,125, $76,000 and $476,000, respectively. The total amount of cash received in 2012, 2011 and 2010 by the Company from the exercise of these options was $63,000, $35,000, and $232,000 respectively. As of December 31, 2012 there was no aggregrate intrinisic value of stock options that were fully vested. The remaining weighted average contractual term for options exercisable is approximately 4.9 years. As of December 31, 2012, all stock options have vested and all related compensation costs has been recognized.

Restricted Stock

     We also grant common stock and restricted common stock units to employees. These awards are recorded at their fair values on the date of grant and compensation cost is recorded using graded vesting over the expected term. The weighted average grant date fair value of common stock and restricted stock units granted during the years ended December 31, 2012, 2011, and 2010 was $0.96 per share (total grant date fair value of $350,000) $2.18 per share (total grant date fair value of $429,000), and $2.59 per share (total grant date fair value of $379,000), respectively. As of December 31, 2012, all restricted stock units had vested. As of December 31, 2012, $22,000 in compensation cost related to restricted stock units was recognized. The total fair value of restricted stock units vested during December 31, 2012, 2011 and 2010 was $378,000, $499,000 and $1,584,000, respectively. The following summary reflects restricted stock unit activity and related information.

				Weighted-Average
				Grant Date Fair
	Shares / Units			Value
NONVESTED AT DECEMBER, 31, 2011	1,047,712		$	0.35
Granted	364,582		$	0.96
Vested or Exercised	(1,412,294	)	$	0.66
Expired or forfeited	-		$	-
NONVESTED AT DECEMBER 31, 2012	-		$	-