Stock Options (Tables)

12 Months Ended

Dec. 31, 2012

Stock Options Tables

Stock options outstanding and exercisable

The following is a summary of changes to outstanding stock options during the fiscal year ended December 31, 2012 and 2011: 

	Number of Share Options			Weighted Average Exercise Price	Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value(1)
Outstanding at December 31, 2010	1,393,000		$	2.06	6.92	$	267,000
Granted	1,405,000		$	0.30	6.13	$	—
Exercised	(36,000	)	$	0.63	—	$	—
Forfeited or Cancelled	(233,000	)	$	2.36	—	$	—
Outstanding at December 31, 2011	2,529,000		$	1.07	6.09	$	—
Granted	270,000		$	0.08	3.96	$	—
Exercised	—		$	—	—	$	—
Forfeited or Cancelled	(1,989,000	)	$	1.11	—	$	—
Outstanding at December 31, 2012	810,000		$	0.64	4.06	$	—
Exercisable at December 31, 2012	574,000		$	0.86	4.36	$	—
Vested and expected to vest(2)	810,000		$	0.64	4.06	$	—

(1) Aggregate intrinsic value represents the value of the closing price per share of our common stock on the last trading day of the fiscal period in excess of the exercise price multiplied by the number of options outstanding or exercisable, except for the “Exercised” line, which uses the closing price on the date exercised.

(2) Number of shares includes options vested and those expected to vest net of estimated forfeitures.

Unvested share activity

Unvested share activity for the year ended December 31, 2012 is summarized below:

	Unvested Number of Options			Weighted-Average Grant Date Fair Value
Unvested balance at December 31, 2011		1,403,000		$	0.26
Granted		270,000		$	0.05
Vested		(917,000	)	$	0.19
Forfeited		(519,000	)	$	0.29
Unvested balance at December 31, 2012		236,000		$	0.04

Stock option activity

The table below presents information related to stock option activity for the fiscal years ended December 31, 2012 and 2011:

	Years Ended December 31,
		2012		2011
Total intrinsic value of stock options exercised	$	—	$	25,000
Cash received from stock option exercises	$	—	$	23,000
Gross income tax benefit from the exercise of stock options	$	—	$	—

Fair Value of Stock options

The fair values of all stock options granted during the fiscal years ended December 31, 2012 and 2011 were estimated on the date of grant using the following range of assumptions:

	Years Ended December 31,
	2012			2011
Expected life (in years)		1.5- 6.5			2.5- 6.5
Average risk-free interest rate		1.66	%		1.63	%
Expected volatility		108% - 136%			107% - 132%
Expected dividend yield		0	%		0	%
Forfeiture rate		3	%		3	%