Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Awards and Per Share Information (Tables)

v2.4.0.8
Stock-Based Awards and Per Share Information (Tables)
 3 Months Ended
Mar. 31, 2014
Summary of Income Statement Classification of Compensation Expense

The following table summarizes the income statement classification of compensation expense associated with share-based payments (in thousands):

 

 

Three Months Ended
March 31,

 

 

2014

 

 

2013

 

Cost of revenue

$

46

  

 

$

80

  

Sales and marketing

 

125

  

 

 

139

  

General and administrative

 

115

  

 

 

115

  

Engineering and development

 

24

  

 

 

34

  

 

$

310

  

 

$

368

  

 
Assumptions on Estimation of Stock Option Fair Values

The stock option fair values were estimated using the Black-Scholes option-pricing model with the following assumptions:

 

 

Three Months Ended
March 31,

 

 

2014

 

 

2013

 

Expected term

 

3.6 years

  

 

 

3.7 years

  

Volatility

 

98.37

% 

 

 

92.70

% 

Annual dividend per share

$

0.00

  

 

$

0.00

  

Risk-free interest rate

 

1.65

% 

 

 

0.80

% 

 
Summary of Option Activity Under Stock Option Plan

A summary of option activity under the Company’s stock option plan for the three months ended March 31, 2014 is as follows:

 

 

Shares

 

  

Weighted
Average
Exercise Price

 

  

Weighted Average
Remaining
Contractual
Term (Years)

 

  

Aggregate
Intrinsic
Value(1)

 

Options outstanding at December 31, 2013

 

4,441,000

  

  

$

3.51

  

  

 

3.83

  

  

$ 

1,574,000

  

Granted at fair market value

 

23,000

 

 

$

2.99

 

 

 

 

 

 

 

 

 

Granted at above fair market value

 

290,000

  

  

$

3.06

  

  

 

 

 

  

 

 

 

Exercised

 

(116,000

)

 

$

2.14

 

 

 

 

 

 

 

 

 

Forfeited, cancelled, or expired

 

(244,000

)  

  

$

3.71

  

  

 

 

 

  

 

 

 

Options outstanding at March 31, 2014

 

4,394,000

  

  

$

3.50

  

  

 

3.62

  

  

$ 

717,000

  

Options exercisable at March 31, 2014

 

2,666 ,000

  

  

$

3.50

  

  

 

2.91

  

  

$ 

678,000

  

Vested options expired during the quarter ended March 31, 2014

 

85,000  

  

  

$

5.13  

  

  

 

 

 

  

 

 

 

(1) The intrinsic value calculation does not include negative values. This can occur when the fair market value on the reporting date is less than the exercise price of the grant.

Cash Proceeds Along with Fair Value Disclosures Related to Grants, Exercises, and Vesting Options

Cash proceeds along with fair value disclosures related to grants, exercises, and vesting options are provided in the following table (in thousands, except per share amounts):

 

 

Three Months Ended
March 31,

 

 

2014

 

  

2013

 

Proceeds from stock options exercised

$

248

  

  

$

76

  

Tax benefit related to stock options exercised (1)

 

N/A

  

  

 

N/A

  

Intrinsic value of stock options exercised (2)

$

82

  

  

$

23

  

Weighted-average fair value of options granted during period

$

1.86

  

  

$

1.84

  

Total fair value of shares vested during the period

$

346

  

  

$

314

  

(1) Excess tax benefits received related to stock option exercises are presented as financing cash inflows. The Company currently does not receive a tax benefit related to the exercise of stock options due to the Company’s net operating losses.

(2) The intrinsic value of stock options exercised is the amount by which the market price of the stock on the date of exercise exceeded the market price of the stock on the date of grant.