XML 35 R28.htm IDEA: XBRL DOCUMENT

Stock Option Plans (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Assumptions Used to Estimate Share-Based Compensation Expense Using Black-Scholes Model

	Year Ended December 31,
	2011		2012
Risk free interest rate		1.25-2.89%		0.79-1.32%
Expected dividend yield		-		-
Expected volatility		97.5-122.2%		71.9-101.2%
Expected term **(in years)		3.0-6.25		6.0-6.25
Forfeiture rate		7.0%		7.0%

** Expected term is calculated using SAB 107, Simplified Formula. Management has concluded that the use of the simplified method for calculating the expected term of its common stock option grants is appropriate given the lack of historical exercises and the standard terms of the employee option grants, including options are granted at-the-money, exercise is conditional only on performing service through the vesting dates, termination of service causes forfeiture of options, employees have a limited number of days to exercise options after termination of service, and options are non-transferable.

Summary of Stock Option Activity

	Number of Shares			Weighted Average Exercise Price		Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2010		1,995,280		$	4.20		7.65	$	436,791
Granted		557,250			1.96
Exercised		(3,126	)		1.35
Expired		(170,375	)		7.64
Forfeited		(508,183	)		2.42
Outstanding, December 31, 2011		1,870,846		$	3.67		7.40	$	66,976
Granted		1,039,200			1.35
Exercised		-			-
Expired		(824,023	)		4.77
Forfeited		(336,713	)		1.84
Outstanding, December 31, 2012		1,749,310		$	2.12		8.32	$	151,919
Exercisable, December 31, 2012		757,078		$	3.08		6.95	$	17,897

Schedule of Options Outstanding

		Options Outstanding				Options Exercisable
Exercise Price		Number of Options		Weighted Average Remaining Contractual Term		Number of Options		Weighted Average Remaining Contractual Term
$	1.00 to 1.99		1,263,184		9.09		300,387		8.04
	2.00 to 2.99		237,126		7.90		207,691		7.95
	3.00 to 3.99		82,500		5.53		82,500		5.53
	4.00 to 4.99		11,500		4.65		11,500		4.65
	7.00		155,000		4.44		155,000		4.44
			1,749,310		8.32		757,078		6.95

Schedule of Stock Based Compensation Included in Results of Operations

	Year Ended December 31,
	2011		2012
Cost of revenue	$	226,108	$	57,999
Selling and marketing expense		25,494		54,527
General and administrative expense		446,611		672,869
Research and development expense		25,403		32,642
Totals	$	723,616	$	818,037

Schedule of Awards to Mr. Bologna

Type	Grant Date	Number of Awards		Intrinsic Value as of December 31, 2012		Exercise Price		Options Exercisable		Remaining Contractual Term
Restricted Shares of Common Stock	12/21/2011		270,000	$	51,300	$	-		-		9.0
Options	12/21/2011		600,000	$	114,000	$	1.20		200,000		9.0
Options	12/21/2011		300,000	$	57,000	$	1.20		300,000		9.0

- 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.

+ References+ Details

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References+ Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References+ Details