Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

5. Stock-Based Compensation

Stock Plans

During the three months ended March 31, 2015, the Company granted 1.3 million shares of restricted stock with a weighted average grant date fair value of $1.52 per share. This cost will be amortized ratably over a period of 12 to 48 months.

As of March 31, 2015, there were 1.2 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 March 31, 2015 and resulted in 11,000 shares being purchased/granted at a fair value of $0.43 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 expense 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 March 31,
	2015		2014
	(unaudited)
Cost of revenues	$	3	$	5
Selling and marketing		75		76
Research and development		169		169
General and administrative		329		467
Total non-cash stock compensation expense	$	576	$	717

Total share-based compensation for each quarter includes cash payment of income taxes related to grants of restricted stock in the amount of $32,000 and $0.1 million for the three months ended March 31, 2015 and 2014, respectively.