Stock Options, Restricted Stock and Warrants (Tables)

6 Months Ended

Jun. 30, 2014

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 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 and six months ended June 30, 2013 and 2014 using the Black-Scholes model with the following weighted average assumptions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2014			2013			2014
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Risk free interest rate		0.90-1.40	%		—	%		0.90-1.40	%		—	%
Expected dividend yield		—			—			—	%		—	%
Expected volatility		102.2-103.0	%		—	%		102.2-104.9	%		—	%
Expected term **(in years)		6.25			—			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 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 six months ended June 30, 2014:

	Number of Shares		Weighted Average Exercise Price		Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2013		2,288,076	$	1.83		8.41	$	1,082
Granted (Unaudited)		—	$	—		—		—
Exercised (Unaudited)		(20,000)	$	1.16		8.08		7,605
Expired (Unaudited)		(10,158)		1.40		8.62		—
Forfeited (Unaudited)		(47,689)	$	1.35		—		—
Outstanding, June 30, 2014 (Unaudited)		2,210,229	$	1.85		7.89	$	—
Exercisable, June 30, 2014 (Unaudited)		1,075,166	$	2.39		6.71	$	—

Schedule of Options Outstanding

The following table provides additional information regarding options outstanding under the 2006 Plan as of June 30, 2014 (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	1,705,229	8.61	622,278	7.80
	2.00 to 2.99	287,500	7.07	235,388	6.97
	3.00 to 3.99	71,000	4.08	71,000	4.07
	4.29	11,500	3.15	11,500	3.15
	7.00	135,000	2.94	135,000	2.94
		2,210,229	7.89	1,075,166	6.71

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 )
	2013		2014		2013		2014
Cost of revenue	$	14,898	$	10,963	$	28,384	$	22,219
Research and development		8,916		12,494		18,758		25,691
Sales and marketing		(4,427)		16,728		12,973		32,477
General and administrative		69,134		172,834		133,729		317,401
Totals	$	88,521	$	213,019	$	193,844	$	397,788

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, 2014		Exercise Price		Options Exercisable		Remaining Contractual Term
Restricted Shares of Common Stock	12/21/2011	270,000	$	248,400	$	—		—		7.5
Options	12/21/2011	600,000	$	—	$	1.20		500,000		7.5
Options	12/21/2011	300,000	$	—	$	1.20		300,000		7.5