Stock Based Compensation

3 Months Ended

Mar. 31, 2013

Stock Based Compensation [Abstract]

Stock Based Compensation

The Company applies the fair value recognition provisions of ASC Topic 718 Stock-Based Compensation.  The Company recorded a net benefit for stock-based compensation included within operating expenses for the three months ended March 31, 2013 of $346,000.  This amount was recorded net of benefit of $462,000, as the result of forfeitures of unvested stock awards prior to the completion of the requisite service period. Total stock-based compensation expense included within operating expenses for the three months ended March 31, 2012 was $165,000.  At March 31, 2013, the unrecognized compensation expense related to non-vested equity awards was $150,000 (net of estimated forfeitures), which is expected to be recognized as compensation expense in fiscal years 2013 through 2016.

During 2012, the Company's issued approximately 183,000 restricted stock awards to various employees at a per share price of $0.02.  The awards were approved by the Compensation Committee of its Board of Directors under the 2005 Equity Incentive Plan.  Included in the shares granted are 121,000 performance based restricted stock which vest upon the achievement of financial goals from fiscal years 2012 through 2014.  These grant agreements expire if the related performance conditions are not met by December 31, 2014.  The Company has not recognized any compensation expense associated with these performance based awards as the achievement of the performance target was not deemed probable during the current period.

The incentive stock options granted are service based awards that vest ratably through fiscal year 2014.