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Stock-Based Compensation | 3 Months Ended
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Mar. 31, 2013
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | Note 8. Stock-Based Compensation We account for stock-based compensation in accordance with the provisions of FASB Accounting Standards Codification ("ASC") topic 718, Compensation-Stock Compensation ("ASC 718"), which established accounting for stock-based awards exchanged for employee services. Stock-based compensation cost is measured at each grant date, based on the fair value of the award, and is recognized as expense over the employee's requisite service period of the award. All of our stock compensation is accounted for as an equity instrument. The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data):
|  | Three Months Ended March 31, |
|  | 2013 |  |  | 2012 |
Cost of revenue |  | $ | 6 |  |  | $ | 18 |
Selling, general and administrative |  |  | 284 |  |  |  | 238 |
Research and development |  |  | 42 |  |  |  | 25 |
Total stock-based compensation |  |  | 332 |  |  |  | 281 |
Tax effect on stock-based compensation |  |  | — |  |  |  | — |
Net effect on net income (loss) |  | $ | 332 |  |  | $ | 281 |
Effect on net income (loss) attributable to AXT, Inc. per common share: |  |  |  |  |  |  |  |
Basic |  | $ | (0.01 | ) |  | $ | (0.01 | )
Diluted |  | $ | (0.01 | ) |  | $ | (0.01 | )
As of March 31, 2013, the unamortized compensation costs related to unvested stock options granted to employees under our stock option plans was approximately $1.9 million, net of estimated forfeitures of $31,000. These costs are amortized on a straight-line basis over a weighted-average period of approximately 2.6 years and will be adjusted for subsequent changes in estimated forfeitures. We did not capitalize any stock-based compensation to inventory as of March 31, 2013 due to the immateriality of the amount. We estimate the fair value of stock options using a Black-Scholes valuation model, consistent with the provisions of ASC 718. There were zero and 80,000 stock options granted with weighted-average grant date fair value of $0 and $3.05 in the three months ended March 31, 2013 and 2012, respectively. The fair value of our stock options granted to employees for the three months ended March 31, 2012 was estimated using the following weighted-average assumptions:
|  | Three months ended March 31, 2012 |
Expected term (in years) |  |  | 4.0 |
Volatility |  |  | 73.41 | %
Expected dividend |  |  | 0 | %
Risk-free interest rate |  |  | 0.76 | %
The following table summarizes our stock option activities during the three months ended March 31, 2013 (in thousands, except per share data):
Stock Options |  | Shares |  |  | Weighted- average Exercise Price |  |  | Weighted- average Remaining Contractual Life (in years) |  |  | Aggregate Intrinsic Value |
Balance as of January 1, 2013 |  |  | 2,727 |  |  | $ | 3.28 |  |  |  | 6.71 |  |  | $ | 1,353 |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Exercised |  |  | (183 | ) |  |  | 1.40 |  |  |  |  |  |  |  |  |
Canceled and expired |  |  | (26 | ) |  |  | 3.80 |  |  |  |  |  |  |  |  |
Balance as of March 31, 2013 |  |  | 2,518 |  |  | $ | 3.41 |  |  |  | 6.84 |  |  | $ | 1,239 |
Options vested and expected to vest as of March 31, 2013 |  |  | 2,502 |  |  | $ | 3.41 |  |  |  | 6.83 |  |  | $ | 1,238 |
Options exercisable as of March 31, 2013 |  |  | 1,523 |  |  | $ | 3.14 |  |  |  | 5.58 |  |  | $ | 1,137 |
The aggregate intrinsic value in the table above represents the total pretax intrinsic value, based on our closing price of $2.94 on March 28, 2013, which would have been received by the option holder had all option holders exercised their options on that date. Restricted stock awards A summary of activity related to restricted stock awards for the three months ended March 31, 2013 is presented below:
Stock Awards | Shares |  | Weighted-Average Grant Date Fair Value |
Non-vested as of January 1, 2013 | 238,723 |  | $ | 4.27 |
Granted | — |  | $ | — |
Vested | — |  | $ | — |
Non-vested as of March 31, 2013 | 238,723 |  | $ | 4.27 |
As of March 31, 2013, the unamortized compensation costs related to unvested restricted stock awards was approximately $768,000, which is to be amortized on a straight-line basis over a weighted average period of approximately 2.2 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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