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

12 Months Ended

Dec. 31, 2013

Summary of Activity under Stock-Based Compensation Plans

A summary of the activity under the Company’s stock-based compensation plans for the years ended December 31, 2013 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, 2011		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			(343,082	)	$	7.27
Exercised					(21,001	)	$	2.36
Balance at December 31, 2011		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		(2,276,747	)		2,115,725		$	0.76						161,022	$	135,600
Cancelled or Expired		441,902			(698,970	)	$	1.87
Exercised					(188	)	$	0.72
Balance at December 31, 2013		5,934,194			5,465,539		$	1.49	$	49,016		6.93
Vested or expected to vest at December 31, 2013					4,942,622		$	1.56	$	35,990		6.72
Exercisable at December 31, 2013					3,058,510		$	1.98	$	-		5.46

Summary Information about Options Outstanding

The following table summarizes information about options outstanding as of December 31, 2013:

	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
$0.52 - $ 0.72		1,364,567		9.44	$	0.59		189,989	$	0.71
$0.73 - $ 1.20		1,875,211		7.95		1.03		1,196,421		1.15
$1.21 - $ 2.42		1,281,698		5.29		1.92		740,210		2.19
$2.43 - $ 6.95		941,063		3.52		3.11		928,890		3.12
$6.96 - $7.95		3,000		0.01		7.95		3,000		7.95
$0.52 - $7.95		5,465,539		6.93	$	1.49		3,058,510	$	1.98

Weighted-average Assumptions Used in Estimating Fair Value of Option Grants by Using Black-Scholes-Merton Model

The fair value of option grants was estimated using the Black-Scholes-Merton model with the following weighted-average assumptions for each of the three years ended December 31:

	2013			2012			2011
Risk-free interest rate		1.75	%		0.72	%		0.69	%
Expected volatility		92.31	%		99.73	%		102.4	%
Expected term in years		4.88			4.69			4.24
Dividend yield		None			None			None

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 years ended December 31, 2013, 2012 and 2011 (in thousands):

	Year Ended December 31,
	2013		2012		2011
Cost of revenue	$	45	$	36	$	21
Research and development		28		33		31
Selling and marketing		51		66		43
General and administrative		52		47		39
Total	$	176	$	182	$	134

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 consolidated statements of operations for the years ended December 31, 2013, 2012 and 2011 (in thousands):

	Year Ended December 31,
	2013		2012		2011
Cost of revenue	$	10	$	0	$	5
Research and development		8		10		19
Selling and marketing		311		80		90
General and administrative		66		120		336
Total	$	395	$	210	$	450

Stock Option

Stock-Based Compensation Expense

The following table illustrates the stock-based compensation expense resulting from stock options included in the consolidated statements of operations for the years ended December 31, 2013, 2012, and 2011 (in thousands):

	Year Ended December 31,
	2013		2012		2011
Cost of revenue	$	14	$	12	$	15
Research and development		68		56		12
Selling and marketing		259		295		333
General and administrative		428		453		79
Restructuring		45		-		-
Stock-based compensation expense, net of income taxes of nil	$	814	$	816	$	439

- 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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