XML 42 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 6 - Stock-Based Awards
6 Months Ended
Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 6. Stock-Based Awards


We maintain the following stockholder-approved equity incentive plans:


 

The 2000 Stock Incentive Plan (the “2000 Plan”) authorized the issuance of up to 4,500,000 shares of common stock covering several different types of awards, including stock options, restricted shares, stock appreciation rights, and performance shares.


 

The 2007 Stock Incentive Plan (the “2007 Plan”) authorized the issuance of up to 5,000,000 shares of common stock covering several different types of awards, including stock options, restricted shares, stock appreciation rights, and other stock-based awards. On July 26, 2012, our stockholders approved an amendment to the 2007 Plan further increasing the number of authorized shares issuable under the plan to 7,000,000 shares of common stock.


 

The 2003 Director Option Plan (the “2003 Plan”) authorized the issuance of up to 450,000 shares of common stock covering the annual automatic grant, unless waived, of 10,000 stock options per outside director per year. The 2003 Plan also provides for granting newly elected or appointed outside directors a one-time grant of 10,000 stock options.


The stock option plans provide that options may be granted at an exercise price of 100% of fair market value of our common stock on the date of grant, may be exercised in full or in installments, at the discretion of our Board of Directors (the “Board”) or its Compensation Committee (the “Compensation Committee”), and must be exercised within ten years from date of grant. We recognize stock-based compensation expense on a straight-line basis over the requisite service period based on fair values, generally four years. We use historical data to estimate expected employee behaviors related to option exercises and forfeitures and included these expected forfeitures as a part of the estimate of stock-based compensation expense as of the grant date.


Stock Options


The following table summarizes stock options activity for the six months ended September 30, 2014:


   

Number

of Shares

   

Exercise

Price Range

   

Weighted

Average

Exercise Price

   

Weighted

Average

Remaining

Contractual Life

 

Outstanding at April 1, 2014

    4,377,874     $0.85 $4.88     $ 1.78       6.0  

Granted

    830,000     0.90  1.25       1.06          

Exercised

    (25,000

)

  0.97  0.97       0.97          

Canceled

    (877,764

)

  0.95  4.30       2.40          

Outstanding at September 30, 2014

    4,305,110     $0.85  $4.88     $ 1.52       6.4  

Vested and expected to vest at September 30, 2014

    4,262,557     $0.85  $4.88     $ 1.53       6.4  

Exercisable at September 30, 2014

    3,260,194     $0.85  $4.88     $ 1.64       5.5  

The weighted average fair value of options granted during the six months ended September 30, 2014 and 2013 was $0.73 and $0.68 per share, respectively.


The total intrinsic value (the excess of the market price over the exercise price) was approximately $12 thousand for stock options outstanding, $10 thousand for stock options exercisable, and $12 thousand for stock options vested and expected to vest as of September 30, 2014. The total intrinsic value for stock options exercised during the six months ended September 30, 2014 was approximately $5 thousand. There were no stock options exercised during the six months ended September 30, 2013.


We do not expect to realize any tax benefits from future disqualifying dispositions, if any. 


RestrictedStock


We determine stock-based compensation expense for performance based restricted stock based upon the fair value of our common stock at the date of grant and recognize expense based upon the most probable outcome as to whether the performance targets will be achieved and the stock-based compensation being earned.


The following table summarizes restricted stock activity for the six months ended September 30, 2014:


   

Number

of Shares

   

Weighted

Average

Grant Price

 

Nonvested at April 1, 2014

    1,325,402     $ 1.06  

Granted

    473,605       1.08  

Vested

    (91,450 )     1.38  

Forfeited

    (319,805 )     1.05  

Nonvested at September 30, 2014

    1,387,752     $ 1.05  

We grant restricted stock awards to certain executive officers, certain management employees and certain members of our Board. 


Stock-Based Compensation Expense


We estimated the fair value of the stock options granted on the date of grant using a Black-Scholes valuation model that used the weighted average assumptions noted in the following table. The risk-free interest rate assumption we use is based upon United States Treasury interest rates appropriate for the expected life of the awards. The expected life (estimated period of time that we expect employees, consultants and directors to hold their stock options) was estimated based on historical rates for two group classifications, (i) employees and consultants and (ii) outside directors. Expected volatility was based on historical volatility of our stock price for a period equal to the stock option’s expected life and calculated on a daily basis. The expected dividend rate is zero since we do not currently pay cash dividends on our common stock and do not anticipate doing so in the foreseeable future.


   

Three Months Ended

September 30,

   

Six Months Ended

September 30,

 
   

2014

   

2013

   

2014

   

2013

 

Risk-free interest rate

    2.0

%

    1.4

%

    2.0

%

    1.2

%

Expected life (in years)

    6.5       5.1       6.6       5.5  

Expected volatility

    78

%

    75

%

    77

%

    80

%

Expected dividend yield

    --       --       --       --  

The following table summarizes stock-based compensation recorded in our condensed consolidated statements of operations for the three and six months ended September 30, 2014 and 2013, respectively:


   

Three Months Ended

   

Six Months Ended

 
   

September 30,

   

September 30,

 
   

2014

   

2013

   

2014

   

2013

 

Cost of sales

  $ 22     $ 12     $ 38     $ 42  

Selling, general and administrative expenses

    166       (244 )     289       265  

Research and development expenses

    7       5       22       21  

Total stock-based compensation expense

  $ 195     $ (227 )   $ 349     $ 328  

At September 30, 2014, unrecognized stock-based compensation expense related to stock options was approximately $0.7 million and is expected to be recognized over a weighted average period of approximately 3.2 years, while unrecognized stock-based compensation expense related to nonvested (restricted stock) awards was approximately $0.5 million, which is expected to be recognized over a weighted average period of approximately 3.0 years.