Stock Compensation

3 Months Ended

Mar. 31, 2014

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

In December 2007, the Company's stockholders approved the 2007 Equity Incentive Plan (“2007 Plan”). The 2007 Plan replaced the Company's 1998 Stock Plan (the “1998 Plan”) and the 1999 Director Option Plan (the “Directors' Plan”), collectively referred to as the “Equity Plans”. The Equity Plans will continue to govern awards previously granted under each respective plan. At March 31, 2014, 310,415 shares of common stock were available for issuance under the 2007 Plan.

Options granted under the 2007 Plan must be issued at a price equal to at least the fair market value of the Company’s common stock on the date of grant. All vested stock options under the 2007 Plan may be exercised at any time within 10 years of the date of grant or within 90 days of termination of employment, or such other time as may be provided in the stock option agreement, and vest as determined by the Board of Directors. The Company’s policy is to issue new shares upon exercise of options or vesting of Restricted Stock Units ("RSU") under the 2007 Plan.

Stock Options

The following table summarizes option activities from December 31, 2013 through March 31, 2014:



	Number of Shares		Weighted-Average Exercise Price per Share	Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2013	133,578		$17.57
Granted	—		—
Exercised	(675	)	$11.20
Canceled	(532	)	$26.40
Outstanding as of March 31, 2014	132,371		$17.57	7.2	$43
Vested or expected to vest at March 31, 2014	122,120		$17.64	7.1	$43
Exercisable at March 31, 2014	89,416		$17.54	6.5	$42

The total intrinsic value of options exercised for the three months ended March 31, 2014 and March 31, 2013 was insignificant for both periods. There were no stock options granted during the three months ended March 31, 2014. The weighted average grant date fair value for the three months ended March 31, 2013 was $6.11. The total cash received from stock options exercised was negligible and $0.1 million for the three months ended March 31, 2014 and March 31, 2013. For the three months ended March 31, 2014 and March 31, 2013, no tax benefit was realized from exercised options.

The fair value of the option grants has been calculated on the date of grant using the Black-Scholes option pricing model. The expected life was based on historical settlement patterns. Expected volatility was based on historical implied volatility in the Company’s stock. The interest rate for periods within the contractual life of the award is based on the U.S. Treasury yield curve in effect at the time of grant. The following table summarizes the weighted-average assumptions for stock options granted during the three months ended March 31, 2013:



	Three Months Ended March 31, 2013
Expected life (years)	3.00
Risk-free interest rate	0.4%
Volatility	59%
Dividend yield	—

Restricted Stock

Restricted stock units granted to employees typically vest over a three year period. Restricted stock units granted to non-employee directors typically vest on the same day of the grant and represent compensation for serving on the Company's Board of Directors. The following table summarizes restricted stock activities from December 31, 2013 through March 31, 2014:



	Number of Shares		Weighted-Average Grant-Date Fair Value
Outstanding as of December 31, 2013	94,771		$17.91
Granted	5,091		$15.73
Restricted Stock Release	(34,065	)	$22.12
Canceled	(1,397	)	$16.05
Outstanding as of March 31, 2014	64,400		$15.55

Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense as recorded in the Consolidated Statements of Operations (in thousands):



	Three Months Ended March 31,
	2014		2013
Cost of revenue	$	21	$	(154	)

Sales and marketing	21		(77		)
Technology and design	63		45
General and administrative	75		843
Included in operating expenses	159		811

Total stock-based compensation expense	$	180	$	657

As of March 31, 2014, total compensation cost not yet recognized and the weighted-average remaining term is as follows ($ in thousands):

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

Expense not yet
recognized

Weighted Average Remaining Term (in years)

Stock Options

Restricted Stock Units