Stock-Based Compensation Plans

12 Months Ended

Dec. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Plans

(6)  STOCK-BASED COMPENSATION PLANS

The Company has a 2005 Stock Option Plan (the “Option Plan”) and has reserved 3,000,000 shares of common stock for issuance under the Option Plan. Vesting terms are determined by the Board of Directors. All stock options under the Option Plan expire no later than ten years from the date of grant.

For the years ended December 31, 2014 and 2013, the Company recorded compensation expense related to stock options of $93 and $133, respectively. Stock-based compensation recorded in the accompanying consolidated statements of operations for the years ended December 31, 2014 and 2013 included $8 and $11, respectively, in cost of goods sold and $85 and $122, respectively, in selling, general and administrative expenses.

For the year ended December 31, 2014, the Company granted options to purchase up to 410,000 shares of common stock to employees at exercise prices that ranged from $0.18 to $0.26 per share. During the year ended December 31, 2013, the Company granted options to purchase up to 1,424,216 shares of common stock at exercise prices that ranged from $0.22 to $0.48 per share.

(6)  STOCK-BASED COMPENSATION PLANS (continued)

The Company used the Black Scholes option pricing model to determine the fair value of stock option grants, using the following assumptions during the years ended December 31, 2014 and 2013:

	2014			2013
Weighted average expected term	6.25 years			6.25 years
Weighted average volatility		121	%		111	%
Weighted average risk-free interest rate		1.67	%		1.54	%
Dividend yield		0	%		0	%

(6)  STOCK-BASED COMPENSATION PLANS (continued)

The weighted average expected term of stock options represents the period of time that the stock options granted are expected to be outstanding based on historical exercise trends. The weighted average expected volatility is based on the historical price volatility of the Company’s common stock. The weighted average risk-free interest rate represents the U.S. Treasury bill rate for the expected term of the related stock options. The dividend yield represents the Company’s anticipated cash dividend over the expected term of the stock options.

Forfeitures of share-based payment awards are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The estimated average forfeiture rate for the years ended December 31, 2014 and 2013 was 40% for both years.

A summary of stock option activity under the Option Plan for the years ended December 31, 2014 and 2013, are presented below:

	Shares Under Option			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at January 1, 2013		1,501,500		$	0.95
Granted		1,424,216		$	0.26
Exercised		(23,000	)	$	0.63
Forfeited		(430,500	)	$	0.87
Outstanding at December 31, 2013		2,472,216		$	0.57	8.1 Years	$	—
Exercisable at December 31, 2013		808,623		$	1.05	5.4 Years	$	—
Outstanding at January 1, 2014		2,472,216		$	0.57
Granted		410,000		$	0.25
Exercised		—
Forfeited		(1,146,697	)	$	0.45
Outstanding at December 31, 2014		1,735,519		$	0.59	7.2 Years	$	—
Exercisable at December 31, 2014		789,579		$	0.93	5.5 Years	$	—

A summary of status of the Company’s non-vested shares under option as of and for the year ended December 31, 2014 is presented below:

	Non-vested Shares Under Option			Weighted Average Grant Date Fair Value
Non-vested at January 1, 2014		1,663,593		$	0.29
Granted		410,000		$	0.22
Vested		(300,956	)	$	0.38
Forfeited		(826,697	)	$	0.38
Non-vested at December 31, 2014		945,940		$	0.29

As of December 31, 2014, the Company had approximately $157 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of approximately 3.0 years. In addition, the Company issued 23,000 shares of common stock in 2013 through a cashless exercise of 46,000 common stock options, pursuant to a separation agreement dated November 1, 2013 (Note 15 ).