Stock-Based Compensation Expense

6 Months Ended

Jun. 30, 2013

Share-Based Compensation, Allocation and Classification In Financial Statements [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7. Stock-based Compensation Expense

Stock Options

The following table is a summary of the Company’s stock option activities for the six months ended June 30, 2013:

			Weighted-
			Average
			Exercise
	Shares		Price
Outstanding at December 31, 2012		3,005,532	$	0.76
Granted		9,985,000		0.12
Exercised		-		-
Expired		(140,391)		(0.58)
Outstanding at June 30, 2013		12,850,141	$	0.26
Exercisable at June 30, 2013		3,624,233	$	0.42
Vested and expected to vest as of June 30, 2013		9,027,638

During the six months ended June 30, 2013, the Company granted 9,985,000 options to purchase common shares at exercise prices of $0.12 and $0.20. The options vest in 3 and 4 years and have a fair value of $300,000.

Compensation expense for stock options during the six months ended June 30, 2013 and 2012 was approximately $558,000 and $1,283,000, respectively. As of June 30, 2013, total unrecognized compensation expense related to unvested stock options was approximately $1,011,000. This amount is expected to be recognized as expense over a weighted-average period of 2.46 years.

Restricted Stock

At the date of grant, the recipients of restricted stock have most of the rights of a stockholder other than voting rights, subject to certain restrictions on transferability and a risk of forfeiture. Restricted shares typically vest over a two to four year period beginning on the date of grant. The fair value of each restricted stock award is based on the market value of the Company’s stock on the date of grant. The Company recognizes the compensation expense for restricted stock on a straight-line basis over the requisite service period.

The following table is a summary of the Company's restricted stock activity for the six months ended June 30, 2013:

			Weighted-
	Restricted		Average		Aggregate
	Stock		Grant Date		Intrinsic
	Outstanding		Fair Value		Value
Balance as of December 31, 2012		257,660	$	0.58	$	110,794
Granted		-		-
Vested		(3,063)		(2.72)
Cancelled		(250,000)		(0.51)
Balance as of June 30, 2013		4,597	$	2.72	$	2,528

Compensation expense for restricted stock during the six months ended June 30, 2013 and 2012 was approximately $16,000 and $587,000, respectively. As of June 30, 2013, total unrecognized compensation expense related to restricted stock was approximately $9,000. This expense is expected to be recognized over a weighted-average period of 0.39 years. There was no restricted stock granted for the six months ended June 30, 2013.