Restricted Stock (Restricted Stock [Member])

12 Months Ended

Dec. 31, 2013

Restricted Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock

Restricted Stock

The Company periodically issues restricted stock to employees, directors, and third parties which, when vested, entitles the holder to receive one share of the Company’s common stock, subject to certain restrictions on their transfer and sale as defined in the 2007 Plan and the related award agreements.

A summary of restricted stock granted, vested, forfeited and unvested outstanding as of, and changes made during, the years ended December 31, 2013 and 2012, is presented below (shares in thousands):

	Restricted Shares		Weighted Average Grant Price
Unvested restricted shares outstanding, January 1, 2012	836		$	2.15
Granted	833		2.65
Vested	(100	)	2.11
Forfeited	(275	)	2.36
Unvested restricted shares outstanding, December 31, 2012	1,294		$	2.43
Granted	388		1.28
Vested	(367	)	1.43
Forfeited	(850	)	2.56
Unvested restricted shares outstanding, December 31, 2013	465		$	2.03

Stock compensation expense relating to restricted stock awards are allocated as follows for the years ended December 31, 2013 and 2012 (in thousands):

	Year Ended December 31,
	2013		2012
Cost of revenue	$	40	$	17
Research and development	8		21
Sales and marketing	56		61
General and administrative	453		370
	$	557	$	469

Stock compensation expense for the year ended December 31, 2013 includes $165,000 related to bonuses earned in 2013 that will be settled with restricted stock in 2014; the value of which is recorded in accrued expenses as of December 31, 2013. The remaining unrecognized stock-based compensation expense for restricted stock at December 31, 2013 was $700,000, of which $113,000, representing 45,000 shares, will only be expensed upon a “change in control” and the remaining $586,000 will be amortized over a weighted average period of 5.3 years.

The tax benefit recognized for stock-based compensation for the year ended December 31, 2013 was diminimus. There was no tax benefit recognized for stock-based compensation for the year ended December 31, 2012. No compensation costs were capitalized as part of the cost of an asset.