Note 5. Stock-Based Compensation

The amount of the stock-based compensation expense is based on the estimated fair value of the awards on their grant dates and is recognized over the required service periods. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model.

Stock-based compensation expense follows (in thousands):

	Three Months Ended June 30				Six Months Ended June 30
	2013		2012		2013		2012
Cost of Sales	$	(5)	$	(14)		2		(8)
Research and Development		46		78		199		198
Marketing and Sales		45		39		172		150
General and Administration		346		283		633		578
Total Stock-Based Compensation	$	432	$	386		1,006		918

During the three months ended June 30, 2013, 1.271,832 RSUs were granted, 628,874 RSUs were released, and 64,104 RSUs were canceled or forfeited, or expired. During the same three months, there were no stock options granted or exercised, and 231,396 stock options were canceled or forfeited or expired. During the six months ended June 30, 2013, 1,304,804 RSUs were granted, 732,012 RSUs were released, and 118,743 RSUs were canceled or forfeited, or expired. During the same six months, there were no stock options granted or exercised, and 300,278 stock options were canceled or forfeited or expired.

During the three months ended June 30, 2012, 567,955 RSUs were granted, 346,952 RSUs were released, and 27,658 RSUs were canceled or forfeited, or expired. During the same three months, there were no stock options granted or exercised, and 73,990 stock options were canceled or forfeited or expired. During the six months ended June 30, 2012, 591,785 RSUs were granted, 405,998 RSUs were released, and 52,447 RSUs were canceled or forfeited, or expired. During the same six months, there were no stock options granted. 14,684 stock options were exercised, and 150,936 stock options were canceled or forfeited or expired.