Stockholders' Equity of Identive Group, Inc. (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Activity under Stock-Based Compensation Plans

A summary of the activity under the Company’s stock-based compensation plans for the six months ended June 30, 2012 and for the year ended December 31, 2011 are as follows:

				Stock Options									Stock Awards
	Shares Available for Grant			Number Outstanding			Average Exercise Price per share		Average Intrinsic Value		Remaining Contractual Life (in years)		Number Granted		Fair Value
Balance at December 31, 2010		7,542,277			1,810,188		$	3.56	$	128,300		4.66
Authorized		4,000,000
Granted		(1,447,980	)		820,716			2.53						627,264	$	1,627,969
Cancelled or Expired		20,035			(343,081	)		7.27
Exercised					(21,001	)		2.36
Balance at December 31, 2011		10,114,332			2,266,822			2.86	$	49,298		5.90
Granted		(1,467,745	)		1,286,110			1.33						181,635	$	272,655
Cancelled or Expired		59,626			(282,985	)		2.79
Balance at June 30, 2012		8,706,213			3,269,947			2.26	$	—		7.08
Vested or expected to vest at June 30, 2012					3,121,589		$	2.29	$	—		6.98

Summary Information about Options Outstanding

The following table summarizes information about options outstanding as of June 30, 2012:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$ 0.94 - $ 1.05		104,000		9.95	$	1.05		—	$	0.00
$ 1.06 - $ 1.20		943,533		9.92		1.20		—		—
$ 1.21 - $ 2.40		746,644		5.93		2.17		527,107		2.23
$ 2.41 - $ 2.63		734,712		7.93		2.55		543,343		2.60
$ 2.64 - $ 10.74		741,058		3.42		3.59		711,552		3.61
$ 0.94 - $ 10.74		3,269,947		7.08	$	2.26		1,782,002	$	2.89

2011 Employee Stock Purchase Plan

Stock-Based Compensation Expense

The following table illustrates the stock-based compensation expense resulting from the ESPP included in the condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of revenue	$	9	$	—	$	14	$	—
Research and development		11		—		16		—
Selling and marketing		15		—		24		—
General and administrative		15		—		22		—
Total	$	50	$	—	$	76	$	—

Incentive Stock Plans

Stock-Based Compensation Expense

The following table illustrates the stock-based compensation expense resulting from stock bonus and incentive plans included in the condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Cost of revenue	$	—		$	2	$	1		$	2
Research and development		1			6		9			10
Selling and marketing		(51	)		65		42			125
General and administrative		(384	)		239		(124	)		296
Total	$	(434	)	$	312	$	(72	)	$	433

Stock Options

Stock-Based Compensation Expense

The following table illustrates the stock-based compensation expense resulting from stock options included in the condensed consolidated statements of operations for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,					Six Months  Ended June 30,
	2012		2011			2012		2011
Cost of revenue	$	2	$	5		$	5	$	8
Research and development		12		(5	)		20		65
Selling and marketing		72		81			132		117
General and administrative		86		(7	)		131		(42	)
Stock-based compensation expense before income taxes		172		74			288		148
Income tax benefit		—		—			—		—
Stock-based compensation expense after income taxes	$	172	$	74		$	288	$	148