Note 2 - Long-Term Incentive Plans

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

2.            LONG-TERM INCENTIVE PLANS

Pursuant to the 2008 Long-term Incentive Plan, as amended (the "Plan"), the Company may grant stock options (non-qualified or incentive), stock appreciation rights, restricted stock, restricted stock units and other share-based awards to employees, directors and other persons who serve the Company. The Plan is overseen by the Compensation Committee of the Board of Directors, which approves the timing and circumstances under which share-based awards may be granted. At September 30, 2014 there were 3.1 million shares available to be granted under the Plan. The Company issues new shares to satisfy the exercise or release of share-based awards. Under the provision of FASB Accounting Standards Codification ("ASC") Topic 718, Stock Compensation , all share-based payments are required to be recognized in the statement of operations based on their fair values at the date of grant.

The fair value of each option award is estimated using a Black-Scholes option valuation model. Expected volatility is based on the historical volatility of the price of the Company's stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option. The Company uses historical data to estimate expected dividend yield, expected life and forfeiture rates. Options generally have a life of 10 years and have either time-based or performance-based vesting features. Time-based awards generally vest over a three year period, while the performance-based awards vest upon the achievement of specific performance targets. There were no options granted during the three months ended September 30, 2014 and 2013. The fair values of the options granted during the nine months ended September 30, 2014 and 2013 were estimated based on the following weighted average assumptions:

	Nine Months
	Ended September 30,
	2014			2013
Expected volatility		78.78	%		76.23	%
Risk-free interest rate		1.91	%		1.06	%
Expected dividend yield		0.00	%		0.00	%
Expected life (in years)		6.0			6.0
Estimated fair value per option granted	$	1.70		$	0.87

The following table presents a summary of the Company's stock option activity for the nine months ended September 30, 2014:

	Number of Options
Outstanding at January 1, 2014		5,994,788
Granted		866,250
Exercised		(665,597	)
Forfeited and cancelled		(73,438	)
Outstanding at September 30, 2014		6,122,003

The Company also grants restricted stock units, or RSUs, each of which entitles the holder to a share of Company common stock. The fair value of an RSU is equal to the market value of a share of common stock on the date of grant. The following table presents a summary of the Company's RSU activity for the nine months ended September 30, 2014:

	Shares
Non-vested at January 1, 2014		-
Granted		139,839
Forfeited and cancelled		(27,956	)
Vested		(14,036	)
Non-vested at September 30, 2014		97,847

The Company amortizes share-based compensation expense over the vesting period on a straight line basis. The impact on the Company's results of operations of recording share-based compensation expense is as follows (in thousands):

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
	2014		2013		2014		2013
Cost of sales	$	31	$	2	$	80	$	30
Research and development		128		35		331		189
Selling, general and administrative		221		220		571		2,422
	$	380	$	257	$	982	$	2,641