Stock-Based Compensation

9 Months Ended

Sep. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

4.  Stock-Based Compensation

Stock Plans

During the nine months ended September 30, 2013, the Company granted 1.5 million shares of restricted stock and options to purchase 120,000 shares of common stock with weighted average grant date fair values of $1.70 and $0.63 per share, respectively. This cost will be amortized ratably over a period of 12 to 48 months.

As of September 30, 2013, there were 1.9 million shares available for future grants under the 2005 Stock Plan.

Employee Stock Purchase Plan

The Company’s most recent six-month offering period ended September 30, 2013 and resulted in 19,000 shares being purchased/granted at a fair value of $0.44 per share.

Stock Compensation

The Company accounts for all stock-based payment awards made to employees and directors based on their fair values and recognized as compensation expense over the vesting period using the straight-line method over the requisite service period for each award as required by FASB ASC Topic No. 718, Compensation-Stock Compensation. Restricted stock is valued using the closing stock price on the date of the grant. Options are valued using a Black-Scholes valuation model.

Stock-based non-cash compensation expenses related to stock options, restricted stock grants and the employee stock purchase plan were recorded in the financial statements as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
		(unaudited)				(unaudited)
Cost of revenues	$	6	$	3	$	17	$	9
Selling and marketing		138		212		698		651
Research and development		205		187		622		568
General and administrative		472		496		1,410		1,818
Restructuring expense		-		-		-		6
Total non-cash stock compensation expense	$	821	$	898	$	2,747	$	3,052

Total share-based compensation for each quarter includes cash payment of income taxes related to grants of restricted stock was de minimis and $0.1 million for the three months ended September 30, 2013 and 2012, respectively. The cash payment of income taxes related to grants of restricted stock totaled $0.3 million for both of the nine months ended September 30, 2013 and 2012.