Equity-based Compensation

9 Months Ended

Sep. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity-based Compensation

Note 13—Equity-based Compensation

Our board of directors adopted the 2009 Equity Incentive Plan (the “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 allowed for the issuance of up to 1,200,000 shares of the Company’s common stock as of June 30, 2013. Effective July 19, 2013, at the Annual Shareholders’ Meeting, the holders of common stock approved an amendment to the Company’s 2009 Equity Incentive Plan to increase the number of shares of common stock reserved for issuance under the plan from 1,200,000 to 2,600,000 shares.

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 1,512,680 options available for grant as of September 30, 2013.

Total stock-based compensation expense recognized using the straight-line attribution method in the Consolidated Statement of Operations is as follows:

	Three months ended					Nine months ended
	September 30,					September 30,
	2013		2012			2013		2012
Stock option compensation expense for employees and directors	$	620	$	277		$	826	$	833
Equity awards for nonemployees issued for services		99		(3	)		102		24
Total stock-based compensation expense	$	719	$	274		$	928	$	857

	Number of shares			Weighted- average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at December 31, 2012		562,025		$	18.50		7.0	$	—
Granted		732,000		$	4.96
Exercised		—			—
Forfeited		(24,705	)	$	14.82
Outstanding at September 30, 2013		1,269,320		$	10.78		7.7	$	89
Exercisable at September 30, 2013		696,037		$	15.48		7.2	$	23

The total fair value of shares vested during the nine months ended September 30, 2013 was $1.2 million. As of September 30, 2013, there was $1.3 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 2.7 years. As of September 30, 2013, there was $0.6 million of total unrecognized compensation expense related to performance-based, non-vested consultant options.

During the nine months ended September 30, 2013 and 2012, the weighted average fair market value using the Black-Scholes option-pricing model of the options granted was $3.47 and $5.75, respectively. The fair market value of the options was computed using the Black-Scholes option-pricing model with the following key weighted average assumptions for the nine months ended as of the dates indicated:

	September 30, 2013			September 30, 2012
Expected life (years)		5.6 years			6.0 years
Interest rate		1.4	%		2.3	%
Dividend yield		—			—
Volatility		71	%		60	%