Stock-Based Compensation

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. STOCK-BASED COMPENSATION

For a detailed description of past equity-based compensation activity, please refer to the Company’s 2012 Form 10-K. There have been no significant changes in the Company’s equity-based compensation accounting policies and assumptions from those that were disclosed in the 2012 Form 10-K.

The Company estimates the fair value of stock option awards on the date of grant using the Black-Scholes option-pricing model. This determination is affected by the Company’s stock price as well as assumptions regarding expected volatility, risk-free interest rate, and expected dividends. The weighted-average grant date fair value per share of stock option awards granted during the three months ended March 31, 2013 and 2012 was $0.58 and $0.48, respectively, using the Black-Scholes model with the weighted-average assumptions presented below. Because option-pricing models require the use of subjective assumptions, changes in these assumptions can materially affect the fair value of the options.

	For the Three Months Ended March 31,
	2013		2012
Expected option lives		3.5 years		3.5 years
Expected volatility		42.55%		52.01%
Risk-free interest rate		0.53%		0.59%
Expected dividend yield		0.00%		5.51%

As of March 31, 2013, there remained 253,123 shares available for future awards under the Company’s 2007 Performance Incentive Plan (the “2007 Plan”). In connection with awards under both the 2007 Plan and awards issued outside of the Plan, the Company recorded approximately $814 thousand and $533 thousand of non-cash stock-based compensation for the three month periods ended March 31, 2013 and 2012, respectively. As of March 31, 2013, there was approximately $2.4 million of unrecognized stock-based compensation expense remaining to be recognized over a weighted-average period of 2.3 years.

A summary of the activity of the 2007 Plan, and awards issued outside of the Plan pertaining to stock option grants is as follows:

	Shares Underlying Awards			Weighted Average Exercise Price		Aggregate Intrinsic Value ($000)		Weighted Average Remaining Contractual Life (In Years)
Awards outstanding, December 31, 2012		3,251,849		$	2.22
Options granted		409,500		$	1.83
Options cancelled		(67,050	)	$	3.02
Options expired		(41,152	)	$	4.66
Awards outstanding, March 31, 2013		3,553,147		$	2.13	$	576		4.98
Awards vested and expected to vest at March 31, 2013		3,163,760		$	2.18	$	501		4.91
Awards exercisable at March 31, 2013		875,182		$	3.34	$	55		3.60

A summary of the activity of the 2007 Plan pertaining to grants of restricted stock units is as follows: 

	Shares Underlying Awards			Weighted Average Exercise Price		Aggregate Intrinsic Value ($000)		Weighted Average Remaining Contractual Life (In Years)
Awards outstanding, December 31, 2012		913,027		$	—
Restricted stock units granted		338,018		$	—
Restricted stock units settled by delivery of common stock upon vesting		(513,984	)	$	—
Restricted stock units cancelled		(21,227	)	$	—
Awards outstanding, March 31, 2013		715,834		$	—	$	1,367		1.47
Awards vested and expected to vest at March 31, 2013		644,209		$	—	$	1,230		2.39
Awards exercisable at March 31, 2013		—		$	—	$	—		—

A summary of the status of the Company’s unvested share-based payment awards as of March 31, 2013 and changes in the three-month period then ended, is as follows:

Unvested Awards	Number of Shares			Weighted Average Grant Date Fair Value
Shares underlying awards unvested at December 31, 2012		3,834,606		$	1.05
Shares underlying options granted		409,500		$	0.58
Shares underlying restricted stock units granted		338,018		$	1.69
Shares underlying options vested		(586,064	)	$	0.55
Shares underlying restricted stock units vested		(513,984	)	$	3.02
Shares underlying options cancelled		(67,050	)	$	1.00
Shares underlying restricted stock units cancelled		(21,227	)	$	3.25
Shares underlying awards unvested at March 31, 2013		3,393,799		$	0.84

For the three months ended March 31, 2013 and 2012, the total fair value of share-based awards vested was approximately $1.2 million and $1.9 million, respectively. For both the three months ended March 31, 2013 and 2012, the total intrinsic value of options exercised was $0 (no options were exercised in either period). For the three months ended March 31, 2013 and 2012, 409,500 and 1,953,500 stock options, respectively, and 338,018 and 199,998 restricted stock units, respectively, were granted to employees of the Company. Additionally, for both the three months ended March 31, 2013 and 2012, no stock options were exercised, and 513,984 and 883,256 shares, respectively, were issued under restricted stock unit grants yielding no cash proceeds to the Company.