Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation Expense, by Type of Awards

The following table summarizes the consolidated stock-based compensation expense, by type of awards for the three and nine months ended September 30, 2012 and 2011 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011 As Recast (1)
Employee stock options	$	110	$	127	$	303	$	221
Stock grants		—		192		106		192
Total stock-based compensation expense	$	110	$	319	$	409	$	413

(1) As recast to reflect the activity of SGT beginning January 1, 2011 combined with the balances of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology).

Consolidated Stock-Based Compensation

The following table summarizes the consolidated stock-based compensation by line item for the three and nine months ended September 30, 2012 and 2011 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011 As Recast (1)
General and administrative	$	84	$	296	$	350	$	378
Sales, marketing and customer service		26		20		56		30
Engineering, design and product management		—		3		3		5
Total stock-based compensation expense	$	110	$	319	$	409	$	413

(1) As recast to reflect the activity of SGT beginning January 1, 2011 combined with the balances of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology).

Fair Value of Share-Based Payment Awards

Assumptions used in the determination of the fair value of share-based payment awards using the Black-Scholes-Merton model for stock option grants during the three and nine months ended September 30, 2012 and 2011 were as follows:

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2012	September 30, 2011 As Recast (1)			September 30, 2012	September 30, 2011 As Recast (1)
Expected term	3.75		3.00		3.75	3.00 - 3.75
Risk-free interest rate	.60% - .67%		1.53	%	.60% - .89%	0.94% - 1.53%
Volatility	220% - 221%		132	%	213% - 221%	132% - 201%
Dividend yield	0%		0	%	0%	0%

(1) As recast to reflect the activity of SGT beginning January 1, 2011 combined with the balances of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology).

Company's Stock Option Activities

The following table summarizes the Company’s stock option activities for the nine month periods ended September 30, 2012 and 2011:

	2012					2011 As Recast (1)
	Shares			Weighted- Average Exercise Price Per Share		Shares			Weighted- Average Exercise Price Per Share
Outstanding - December 31		5,171,500		$	0.56		—		$	—
Granted		675,000			0.46		—			—
Exercised		—			—		—			—
Forfeited		(23,000	)		1.10		—			—
Outstanding - March 31		5,823,500			0.55		2,480,175			0.91
Granted		750,000			0.28		3,700,000			0.49
Exercised		—			—		—			—
Forfeited		(830,000	)		0.64		(650,000	)		0.39
Outstanding - June 30		5,743,500			0.50		5,530,175			0.68
Granted		1,195,000			0.28		190,000			0.48
Exercised		—			—		—			—
Forfeited		(176,625	)		0.72		(420,000	)		0.42
Outstanding - September 30		6,761,875		$	0.45		5,300,175		$	0.71

(1) As recast to reflect the activity of SGT beginning January 1, 2011 combined with the balances of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology).

Company's Restricted Stock Activities

The following table summarizes the Company’s restricted stock activities for the nine month periods ended September 30, 2012 and 2011:

	Shares
	2012		2011 As Recast (1)
Outstanding - December 31		925,868		—
Granted/vested		—		—
Forfeited		—		—
Outstanding - March 31		925,868		525,868
Granted/vested		400,000		—
Forfeited		—		—
Outstanding - June 30		1,325,868		525,868
Granted/vested		—		400,000
Forfeited		—		—
Outstanding - September 30		1,325,868		925,868
Vested as of September 30		1,325,868		925,868

(1) As recast to reflect the activity of SGT beginning January 1, 2011 combined with the balances of Solar Power, Inc. beginning March 31, 2011, as required under the accounting guidelines for a transfer of an entity under common control (refer to Note 4—Acquisition of Solar Green Technology).