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

9 Months Ended

Sep. 30, 2013

Summary of Activity under Stock-Based Compensation Plans

A summary of the activity under the Company’s stock-based compensation plans for the nine months ended September 30, 2013 and for the year ended December 31, 2012 is 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 January 1, 2012		10,114,332			2,266,821			$	2.86		$	49,298		5.90
Authorized
Granted		(2,447,033	)		2,208,110			$	1.17								238,923		$	419,824
Cancelled or Expired		101,740			(425,959	)		$	2.85
Exercised
Balance at December 31, 2012		7,769,039			4,048,972			$	1.94		$	825,309		7.43
Authorized
Granted		(1,352,437	)		1,220,725			$	0.93								131,712		$	118,600
Cancelled or Expired		295,889			(499,888	)		$	2.08
Exercised					(188	)		$	0.72
Balance at September 30, 2013		6,712,491			4,769,621			$	1.67		$	-		6.67
Vested or expected to vest at September 30, 2013					4,406,558			$	1.72		$	-		6.53
Exercisable at September 30, 2013					2,982,413			$	2.02		$	-		5.59

Summary Information about Options Outstanding

The following table summarizes information about options outstanding as of September 30, 2013:

	Options Outstanding
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.72 - $ 0.80		1,181,979		9.33	$	0.77		150,604	$	0.72
$0.81 - $ 1.20		1,289,169		7.47		1.14		1,177,461		1.15
$1.21 - $ 2.40		1,068,405		5.71		1.80		505,295		2.19
$2.41 - $ 3.13		956,113		4.36		2.69		875,098		2.71
$3.14 - $ 8.34		273,955		3.15		3.95		273,955		3.95
$0.72 - $ 8.34		4,769,621		6.67	$	1.67		2,982,413	$	2.02

Employee Stock Purchase Plan

Stock-Based Compensation Expense

The following table illustrates the stock-based compensation expense resulting from the ESPP included in the consolidated statements of operations for the three and nine months ended September 30, 2013 and 2012 (in thousands):

	Three Months Ended September 30,
	2013		2012		2013		2012
Cost of revenue	$	11	$	14	$	39	$	28
Research and development		3		11		24		27
Selling and marketing		9		26		42		50
General and administrative		15		16		46		38
Total	$	38	$	67	$	151	$	143

Share Bonus And Incentive 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 nine months ended September 30, 2013 and 2012 (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2013		2012			2013		2012
Cost of revenue	$	3	$	—		$	7	$	1
Research and development		3		5			6		14
Selling and marketing		68		(7	)		180		35
General and administrative		42		237			89		113
Total	$	116	$	235		$	282	$	163

Stock Option

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 nine months ended September 30, 2013 and 2012 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Cost of revenue	$	3	$	3	$	10	$	8
Research and development		14		16		55		36
Selling and marketing		40		114		221		246
General and administrative		42		157		375		288
Restructuring		45		—		45		—
Stock-based compensation expense, net of income taxes of nil	$	144	$	290	$	706	$	578

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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