XML 19 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock Option Plans (Tables)
6 Months Ended
Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Assumptions Used to Estimate Share-Based Compensation Expense Using Black-Scholes Model
Except for the certain grants of restricted common stock and common stock options containing market conditions as described below, the Company estimated share-based compensation expense for the three months ended June 30, 2012 and 2013 using the Black-Scholes model with the following weighted average assumptions:
 
 
 
Three
Months Ended June 30,
 
 
 
2012
 
 
2013
 
 
 
(Unaudited)
 
 
(Unaudited)
 
Risk free interest rate
 
 
0.88
%
 
 
0.90-1.40
%
Expected dividend yield
 
 
 
 
 
 
Expected volatility
 
 
71.86
%
 
 
102.16-102.99
%
Expected term **(in years)
 
 
6.25
 
 
 
6.25
 
Forfeiture rate
 
 
7.0
%
 
 
7.0
%
Summary of Stock Option Activity
The following table summarizes the stock option activity for the 2006 Plan for the six months ended June 30, 2013:
 
 
 
Number of
Shares
 
Weighted
Average
Exercise
Price
 
Remaining
Contractual
Life (Years)
 
Aggregate
Intrinsic
Value
 
Outstanding, December 31, 2012
 
 
1,749,310
 
$
2.12
 
 
8.32
 
$
151,919
 
Granted (Unaudited)
 
 
255,000
 
$
1.38
 
 
9.81
 
 
 
Exercised (Unaudited)
 
 
(834)
 
$
 
 
 
 
 
Expired (Unaudited)
 
 
(135,135)
 
 
2.75
 
 
6.68
 
 
11,166
 
Forfeited (Unaudited)
 
 
(302,951)
 
$
1.39
 
 
 
 
66,495
 
Outstanding, June 30, 2013 (Unaudited)
 
 
1,565,390
 
$
2.09
 
 
8.04
 
$
134,268
 
Exercisable, June 30, 2013 (Unaudited)
 
 
773,138
 
$
2.81
 
 
6.87
 
$
61,477
 
Schedule of Options Outstanding
The following table provides additional information regarding options outstanding under the 2006 Plan as of June 30, 2013 (Unaudited):
 
 
 
 
Options Outstanding
 
Options Exercisable
 
Exercise Price
 
Number of
Options
 
WA Remaining
Contractual
Term
 
Number of
Options
 
WA
Remaining
Contractual
Term
 
$
1.00 to 1.99
 
 
1,169,390
 
 
8.81
 
 
389,699
 
 
8.02
 
 
2.00 to 2.99
 
 
178,500
 
 
7.45
 
 
165,939
 
 
7.49
 
 
3.00 to 3.99
 
 
71,000
 
 
5.07
 
 
71,000
 
 
5.08
 
 
4.00 to 4.99
 
 
11,500
 
 
4.15
 
 
11,500
 
 
4.15
 
 
7.00
 
 
135,000
 
 
3.94
 
 
135,000
 
 
3.94
 
 
 
 
 
1,565,390
 
 
8.04
 
 
773,138
 
 
6.87
 
Schedule of Stock Based Compensation Included in Results of Operations
Stock-based compensation expense was classified as follows in the results of operation:
 
 
 
Three Months Ended
June 30,
 
Six Months Ended June
30,
 
 
 
( Unaudited )
 
( Unaudited )
 
 
 
2012
 
2013
 
2012
 
2013
 
Cost of revenue
 
$
17,547
 
$
14,898
 
$
34,237
 
$
28,384
 
Research and development
 
 
9,943
 
 
8,916
 
 
12,423
 
 
18,758
 
Sales and marketing
 
 
13,693
 
 
(4,427)
 
 
28,060
 
 
12,973
 
General and administrative
 
 
155,193
 
 
69,134
 
 
446,664
 
 
133,729
 
Totals
 
$
196,376
 
$
88,521
 
$
521,384
 
$
193,844
 
Schedule of Awards to Mr. Bologna
The following table summarizes these awards to Mr. Bologna:
 
Type
 
Grant Date
 
Number of Awards
 
Intrinsic
Value as of
June 30,
2013
 
Exercise Price
 
Options
Exercisable
 
Remaining
Contractual
Term
 
Restricted Shares of Common Stock
 
12/21/2011
 
 
270,000
 
$
86,400
 
$
 
 
 
 
8.5
 
Options
 
12/21/2011
 
 
600,000
 
$
192,000
 
$
1.20
 
 
300,000
 
 
8.5
 
Options
 
12/21/2011
 
 
300,000
 
$
96,000
 
$
1.20
 
 
300,000
 
 
8.5