Capital Stock Disclosure [Text Block] | 13 . Capital Stock Common Stock On February 5, 2008, the Company’s Board of Directors adopted a Shareholder Rights Plan and declared a dividend distribution of one preferred stock purchase right for each outstanding share of the Company’s common stock to shareholders of record as of the close of business on February 6, 2 008. Initially, these rights will not be exercisable and will trade with the shares of the Company’s common stock. Under the Shareholder Rights Plan, the rights generally will become exercisable if a person becomes an “acquiring person” by acquiring 20% or more of the common stock of the Company or if a person commences a tender offer that could result in that person owning 20% or more of the common stock of the Company. If a person becomes an acquiring person, each holder of a right (other than the acquiri ng person) would be entitled to purchase, at the then-current exercise price, such number of shares of preferred stock which are equivalent to shares of the Company’s common stock having a value of twice the exercise price of the right. If the Company is a cquired in a merger or other business combination transaction after any such event, each holder of a right would then be entitled to purchase, at the then-current exercise price, shares of the acquiring company’s common stock having a value of twice the ex ercise price of the right. Preferred Stock The Company’s Board of Directors has the authority to issue up to 5.0 million shares of preferred stock and to determine the price privileges and other terms of the shares. The Board of Directors may exercise th is authority without any further approval of stockholders. As of September 30, 2015 , the Company had no preferred stock issued or outstanding . Employee Stock Purchase Plan (as amended, the “ESPP”) In 2000, the Company approved the ESPP . Under thi s ESPP , participating employees can authorize the Company to withhold a portion of their base pay during consecutive six-month payment periods for the purchase of shares of the Company’s common stock. At the conclusion of the period, participating employee s can purchase shares of the Company’s common stock at 85% of the lower of the fair market value of the Company’s common stock at the beginning or end of the period. Shares are iss ued under the ESPP for the six-month periods ending June 30 and December 31. Under this plan, 750,000 shares of common stock are authorized for issuance of which 611,369 shares were issue d as of September 30, 2015 . During the nine months ended September 30, 2015 and 2014 , the Company issued 26,181 shares and 31,116 shares, respectively, of the Company’s common stock under the ESPP. There were no shares issued under the ESPP during the three months ended September 30, 2015 and 2014 . Third Amended and Restated 2000 Stock Option and Incentive Plan (as amended, the “Third A&R Plan”) The Second Amendment to the Third A&R Plan (the “Amendment”) was adopted by the Board of Directors on April 3, 2015. Such Amendment was approved by the stockholders at the Company’s 2015 Annual Meeting. Pursuant to the Amendment, the aggregate number of shares authorized for issuance under the Third A&R Plan was increased by 2,500,000 shares to 17,508,929. Restricted Stock Units with a Market Condition (the “Market Condition RSU’s) On August 3, 2015, the Compensation Committee of the Board of Directors of the Company approved and granted deferred stock awards of Market Condition RSU’s to members of the Company’s management team under the Third A&R Plan. The vesting of these Market Condition RSU’s is cliff-based and linked to the achievement of a relative total shareholder return of the Company’s common stock from August 3, 2015 to the earlier of ( i ) August 3, 2018 or (ii) upon a change of con trol (measured relative to the Russell 3000 index and based on the 20-day trading average price before each such date). As of September 30, 2015 , t he target number of these restricted stock units that may be earned is 196,782 shares; the maximum amount is 150% of the target number. Stock-Based Payment Awards The Company accounts for stock-based payment awards in accordance with the provisions of FASB ASC 718, which requires it to recognize compensation expense for all stock-based payment awards made to employees and directors incl uding stock options, restricted stock units, Market Condition RSU’s and employee stock purchases related to the ESPP. Stock option and restricted stock unit activity under the Company’s Third A&R Plan for the nine months ended September 30, 2015 was as follows: Stock Options Restricted Stock Units Market Condition RSU's Weighted Stock Average Restricted Market Options Exercise Stock Units Grant Date Condition RSU's Grant Date Outstanding Price Outstanding Fair Value Outstanding Fair Value Balance at December 31, 2014 6,263,112 $ 3.42 306,397 $ 4.30 - $ - Granted 868,000 5.51 254,685 5.56 196,785 4.81 Exercised (1,739,134) 3.04 - - - - Vested (RSUs) - - (237,188) - - - Cancelled / forfeited (272,121) 3.98 - - - - Balance at September 30, 2015 5,119,857 $ 3.87 323,894 $ 5.30 196,785 $ 4.81 The weighted average fair value of the options granted under the Third A&R Plan during the three months ended September 30, 2015 and 2014 was $ 2.14 and $ 2.64 , respectively. The weighted average fair value of the options granted under the Third A&R Plan during the nine months ended September 30, 2015 and 2014 was $ 2.21 and $ 2.20 , respectively . The following assumptions were used to estimate the fair value , using the Black-Scholes option pricing model, of stock options granted during the three and nine months ended September 30, 2015 and 2014 : Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Volatility 39.47 % 56.96 % 41.07 % 56.83 % Risk-free interest rate 1.76 % 1.90 % 1.72 % 1.79 % Expected holding period (in years) 5.25 years 5.93 years 5.52 years 5.75 years Dividend yield - % - % - % - % The weighted average fair value of the Market Condition RSU’s granted under the Third A&R Plan during the three months ended September 30, 2015 was $ 4.81 . The following assumptions were used to estimate the fair value , using a Monte-Carlo valuation simulation, of the Market Condition RSU’s granted during the three months ended September 30, 2015 : Three Months Ended September 30, 2015 Volatility 35.88 % Risk-free interest rate 0.99 % Correlation coefficient 0.25 % Dividend yield - % The Company used historical volatility to calculate the expected volatility for each grant as of the grant date . Historical volatility was determined by calculating the mean reversion of the daily adjusted closing stock price. The risk-free interest rate assumption is based upon observed U.S. Treasury bill interest rates (risk-free) appropriate for the term of the Company’s stock options and Market Condition RSU’s. The expected holding period of stock options represents the period of time options are expec ted to be outstanding and is based on historical experience. The vesting period ranges from one to four years and the contractual life is ten years. The correlation coefficient, used to value the Market Condition RSU’s, represents the way in which entities move in relation to the Russell 3000 index as a whole. Stock- based c ompensation expense related to stock options, restricted stock units , Market Condition RSU’s and the ESPP for the three and nine months ended September 30, 2015 and 2014 was allocated as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) Cost of revenues $ 18 $ 36 $ 54 $ 94 Sales and marketing 149 100 343 244 General and administrative 583 463 1,580 1,160 Research and development 27 16 72 36 Total stock-based compensation $ 777 $ 615 $ 2,049 $ 1,534 On April 28, 2015, the Company announced the appointment of James Green to its Board of Directors and the retirement of Robert Dishman from its Board of Directors . As part of Dr. Dishman’s retirement, the Company ( i ) awarded an unrestricted stock award to Dr. Dishman on April 28, 2015, having an aggregate cash value of $80,000, (ii) accelerated the vesting of all outstanding stock options and restricted stock units that were unvested as of April 28, 2015, and (iii) e xtended the post-retirement option exercise period for each option to the earlier to occur of the respective scheduled expiration date or April 28, 2016. Total compensation expense recognized as part of general and administrative expenses for the nine months ended September 30, 2015 , as part of these modifications, was approximately $0.1 million. The Company did not capitalize any stock-based compensation. Earnings per share Basic earnings per share is based upon net income divided by the number of weighted average common shares outstanding during the period. The calculation of diluted earnings per share assumes conversion of stock options, restricted stock units and Market Condition RSU’s into common stock using the treasury method. The weighted av erage number of shares used to compute basic and diluted earnings per share consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Basic 33,933,327 32,341,586 33,473,958 32,079,744 Effect of assumed conversion of employee and director stock options and restricted stock units - 1,073,271 - 1,017,268 Diluted 33,933,327 33,414,857 33,473,958 33,097,012 Excluded from the shares used in calculating the diluted earnings per common share in the above table are options, restricted stock units and Market Condition RSU’s of approximately 5,640,536 and 2,449,873 shares of common stock for the three months ended September 30, 2015 and 2014 , respectively, as the impact of these shares would be anti-dilutive. Excluded from the shares used in calculating the diluted earnings per common share in the above table are options, restricted sto ck units and Market Condition RSU’s of approximately 5,640,536 and 2,535,314 shares of common stock for the nine months ended September 30, 2015 and 2014 , respectively, as the impact of these shares would be anti-diluti ve. |