6. Stockholders’ Equity and Employee Stock Option Plans:

Stock-based Compensation Expense

The following table summarizes stock-based compensation expense for the three months ended March 31, 2015 and 2014 and its allocation within the condensed consolidated statements of operations (in thousands):



	Three Months Ended
	March 31,
	2015			2014

Cost of revenues	$	(41	)	$	91
Product development	99			217
Sales and marketing	(83		)	61
General and administrative	182			316
Discontinued operations	—			198
Total	$	157		$	883

The current quarter negative expense for the cost of revenues and sales and marketing departments is primarily due to the impact of reversal of expense resulting from the forfeiture of equity awards for certain employees whose employment terminated during the quarter.

Stock Award Activity

The total intrinsic value of options exercised during the three months ended March 31, 2015 and 2014 was $0 and $3,000, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the options. There were no options exercised during the three months ended March 31, 2015.

The total fair value of RSUs vested and released during the three months ended March 31, 2015 and 2014 was approximately $244,000 and $28,000, respectively. The fair value is calculated by multiplying the fair market value of the Company’s stock on the vesting date by the number of shares vested.

Stock-based Compensation Expense for Awards with Financial-Based Performance Vesting Requirements

As of March 31, 2015, there were 112,500 unvested RSUs and RSAs, issued in prior years, that were subject to service-based vesting conditions as well as certain financial or other performance-based vesting requirements that must be achieved before vesting can occur. As of December 31, 2013, the Company determined that the performance condition was improbable of achievement and therefore the cumulative compensation expense of $217,000 associated with these awards was reversed. The Company continues to believe that the performance condition is improbable of achievement and therefore no expense was booked during the three months ended March 31, 2015. These awards have subsequently expired as of April 1, 2015.