Stock Option Plans (Tables)

9 Months Ended

Sep. 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 September 30, 2012 and 2013 using the Black-Scholes model with the following weighted average assumptions:

	Three
	Months Ended September 30,
	2012			2013
	(Unaudited)			(Unaudited)
Risk free interest rate		0.79-0.80	%		1.37	%
Expected dividend yield		—			—
Expected volatility		72.35	%		107.37	%
Expected term **(in years)		6.02			5.0
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 Company’s lack of history of option exercises.

Summary of Stock Option Activity

The following table summarizes the stock option activity for the 2006 Plan for the nine months ended September 30, 2013:

		Weighted
		Average		Remaining		Aggregate
	Number of	Exercise		Contractual		Intrinsic
	Shares	Price		Life (Years)		Value
Outstanding, December 31, 2012	1,749,310	$	2.12		8.32	$	151,919
Granted (Unaudited)	266,500	$	1.41		9.57		—
Exercised (Unaudited)	(18,023)	$	1.33		6.02		5,426
Expired (Unaudited)	(252,010)		2.30		7.49		56,177
Forfeited (Unaudited)	(305,901)	$	1.39		—		262,901
Outstanding, September 30, 2013 (Unaudited)	1,439,876	$	2.14		7.80	$	876,536
Exercisable, September 30, 2013 (Unaudited)	865,332	$	2.63		6.97	$	401,899

Schedule of Options Outstanding

The following table provides additional information regarding options outstanding under the 2006 Plan as of September 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	934,876	8.7	435,361	8.1
	2.00 to 2.99	287,500	7.8	212,471	7.6
	3.00 to 3.99	71,000	4.8	71,000	4.8
	4.00 to 4.99	11,500	3.9	11,500	3.9
	7.00	135,000	3.7	135,000	3.7
		1,439,876	7.8	865,332	7.0

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 September 30,				Nine Months Ended September 30,
	(Unaudited)				(Unaudited)
	2012		2013		2012		2013
Cost of revenue	$	12,603	$	12,600	$	46,839	$	40,984
Research and development		17,167		8,075		29,591		26,833
Sales and marketing		11,277		6,493		39,337		19,466
General and administrative		121,466		74,293		568,130		208,023
Totals	$	162,513	$	101,461	$	683,897	$	295,306

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 September 30, 2013		Exercise Price		Options Exercisable		Remaining Contractual Term
Restricted Shares of Common Stock	12/21/2011		270,000	$	275,400	$	—		—		8.2
Options	12/21/2011		600,000	$	612,000	$	1.20		300,000		8.2
Options	12/21/2011		300,000	$	306,000	$	1.20		300,000		8.2