Equity-based Compensation

12 Months Ended

Dec. 31, 2012

Equity based Compensation [Abstract]

Equity-based Compensation

Note 14—Equity-based Compensation

Total stock-based compensation expense recognized using the straight-line attribution method in the consolidated statement of operations for the year ended December 31 is as follows:

	2012		2011
Stock option compensation expense for employees and directors	$	1,200	$	2,607
Restricted stock expense		—		48
Equity awards for nonemployees issued for services		24		245
Total stock-based compensation expense	$	1,224	$	2,900

Our board of directors adopted the 2009 Equity Incentive Plan (Plan) effective September 3, 2009. The Plan is intended to further align the interests of the Company and its stockholders with its employees, including its officers, non-employee directors, consultants and advisors by providing incentives for such persons to exert maximum efforts for the success of the Company. The Plan currently allows for the issuance of up to 30,000,000 shares of the Company’s common stock. The types of awards that may be granted under the Plan include options (both nonqualified stock options and incentive stock options), stock appreciation rights, stock awards, stock units, and other stock-based awards. The term of each award is determined by the Board at the time each award is granted, provided that the terms of options may not exceed ten years. The Plan had 16,349,375 options available for grant as of December 31, 2012.

During the years ended December 31, 2012 and 2011, the weighted average fair market value using the Black-Scholes option-pricing model of the options granted was $0.20 and $0.40, respectively. The fair market value of the stock options at the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions for the year ended December 31:

	2012			2011
Expected life (years)		5.7 years			5.4 years
Interest rate		1.6	%		2.1	%
Dividend yield		—			—
Volatility		64	%		62	%

There were 600,000 cashless stock options exercised during the year ended December 31, 2011, which resulted in the issuance of 246,141 shares of common stock.

	Number of shares			Weighted- average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at January 1, 2011		5,677,000		$	0.86		7.5	$	—
Granted		9,628,000		$	0.72
Exercised		(600,000	)	$	0.75
Forfeited		(1,096,500	)	$	0.77
Outstanding at December 31, 2011		13,608,500		$	0.77		8.4	$	—
Granted		950,000		$	0.32
Exercised		—
Forfeited		(507,875	)	$	0.62
Outstanding at December 31, 2012		14,050,625		$	0.74		7.0	$	—
Exercisable at December 31, 2012		11,388,567		$	0.78		7.0	$	—

The total fair value of shares vested during the year ended December 31, 2012 was $1.3 million. As of December 31, 2012, there was $0.4 million of total unrecognized compensation cost, related to non-vested stock options which vest over time. That cost is expected to be recognized over a weighted-average period of 1.2 years.

Restricted stock

The following table summarizes the Company’s restricted stock activity for the year ended December 31, 2011:

	Non-vested Options
				Weighted-
	Number of			Average Fair
	Shares			Value
Non-vested at January 1, 2011		150,000		$	0.48
Granted		—			—
Vested		(150,000	)		0.48
Forfeited		—			—
Non-vested at December 31, 2011		—		$	—