Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

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

Stock-Based Compensation

Stock-Based Compensation

We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. Currently, we grant options and restricted stock awards ("RSAs") from the 2005 Long-Term Incentive Plan ("2005 LTIP") and the 2010 Equity Compensation Plan (“2010 ECP”).

For the three and six months ended June 30, 2013, stock-based compensation expense was $110,420 and $300,413. For the three and six months ended June 30, 2012, stock-based compensation expense was $191,445 and $386,864, respectively.

The total compensation cost at June 30, 2013 related to non-vested awards not yet recognized was approximately $342,836 to be recognized over a weighted-average recognition period of 0.72 years.

During the first quarter of 2013, we granted to certain employees a total of 100,000 RSAs with a weighted average fair value of $0.72 per share. These shares vest ratably over three years. During the second quarter of 2013, we granted members of our board of directors a total of 80,000 RSAs with a weighted average fair value of $0.77 per share which vest on December 31, 2013.

On March 31, 2013, some of our employees voluntarily canceled certain outstanding stock options for no consideration. As a result, 805,134 shares were canceled and returned to 2005 LTIP and 2010 ECP plans. The cancellation of these options resulted in the recognition of $49,577 in additional stock-based compensation expense, which represented the fair value of the canceled options that had not yet been recognized as of the date of cancellation.

As a result of the changes noted previously, the following table summarizes our 2005 LTIP and 2010 ECP plans as of June 30, 2013:

	Options Outstanding	RSAs Outstanding	Awards Exercised	Available Shares	Authorized Shares
2010 ECP	276,998	46,095	1,035,000	2,177,852	3,535,945
2005 LTIP	33,748	187,730	246,779	531,743	1,000,000
Total	310,746	233,825	1,281,779	2,709,595	4,535,945

We also have 168,455 options outstanding under a separate plan which is not authorized to issue any additional shares.