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Note 10 - Shareholders Equity | 12 Months Ended
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Dec. 31, 2012
Stockholders' Equity Note Disclosure [Text Block] | 10. Shareholders’ Equity Private Placement Between February 29, 2012 and March 2, 2012, the Company raised $4.9 million by entering into Securities Purchase Agreements with ten investors, under which it sold 19,600,000 units, each of which consists of one share of the Company’s common stock, par value $0.0001 per share, and one-half warrant to purchase one share of common stock. The purchase price of each unit was $0.25, based on a formula involving the stock’s 30 day average price prior to February 24, 2012. Each warrant entitles the holder to purchase one share of common stock at an exercise price of $0.54. Each warrant is immediately separable from the unit and immediately exercisable, and expires three years from the date of issuance. The Company used the proceeds of the offering to retire debt and for working capital purposes. Eight of the ten investors were new investors and the largest single investment was $1.0 million. Warrants The Company has issued warrants in conjunction with various private placements of its common stock, debt financing arrangements and acquisitions. There have been no warrants issued to employees, directors, or consultants for compensation purposes. As a result of the Private Placement in 2012 discussed above, warrants that were issued in 2008 originally priced at $3.08 per share were re-priced to $1.97 per share, and warrants issued in 2009 originally price at $0.65 per share were re-priced to $0.49 per share. The warrants were re-priced in accordance with their respective agreements, based upon a formula taking into account the dilutive effect of new share issuances and the price of those issuances relative to the number of shares outstanding prior to the issuances and the original exercise price of the warrants. The activity relating to warrants was as follows:
|  | Warrants Outstanding |  |  | Weighted Average Exercise Price |
Balance, December 31, 2009 |  |  | 4,437,639 |  |  | $ | 1.24 |
Warrants issued |  |  | 855,000 |  |  |  | 0.50 |
Warrants exercised |  |  | (1,730,062 | ) |  |  | 0.01 |
Warrants cancelled |  |  | (271,199 | ) |  |  | 4.50 |
Balance, December 31, 2010 |  |  | 3,291,378 |  |  | $ | 1.42 |
Warrants issued |  |  | 125,000 |  |  |  | 0.01 |
Warrants exercised |  |  | (160,000 | ) |  |  | 0.01 |
Balance, December 31, 2011 |  |  | 3,256,378 |  |  | $ | 1.43 |
Warrants issued |  |  | 9,800,000 |  |  |  | 0.54 |
Balance, December 31, 2012 |  |  | 13,056,378 |  |  | $ | 0.76 |
Exercisable, December 31, 2012 |  |  | 12,856,378 |  |  | $ | 0.77 |
In December 2009, the Company entered into a strategic alliance with Woodstone Energy LLC (“Woodstone”), a commercial and industrial energy services company. This strategic alliance created a path for contracts totaling not less than $15 million to be issued by Woodstone to SRC. In return for this Woodstone commitment, the Company issued 600,000 warrants. 400,000 of those warrants became exercisable by Woodstone upon the written commitment of $10 million in specific secured contracts. The remaining 200,000 warrants will become exercisable upon the written commitment of an additional $5 million in specific secured contracts. SRC has received approximately $4.4 million in specific secured contracts toward the additional $5 million through December 31, 2012. The warrants are exercisable at $0.49 per share and expire on December 31, 2014. The number of warrants and weighted average remaining life (in years) by price for both total outstanding warrants and total exercisable warrants at December 31, 2012 was as follows:
Exercise Price |  |  | Number of Shares Outstanding |  |  | Weighted Average Remaining Contactual Life |  |  | Number of Shares Exercisable |  |  | Weighted Average Remaining Contactual Life |
|  |  |  |  |  | (in years) |  |  |  |  |  | (in years) |
$ | 0.01 |  |  |  | 300,000 |  |  |  | 2.7 |  |  |  | 300,000 |  |  |  | 2.7 |
$ | 0.49 |  |  |  | 600,000 |  |  |  | 2.0 |  |  |  | 400,000 |  |  |  | 2.0 |
$ | 0.54 |  |  |  | 9,800,000 |  |  |  | 2.2 |  |  |  | 9,800,000 |  |  |  | 2.2 |
$ | 1.20 |  |  |  | 350,000 |  |  |  | 2.2 |  |  |  | 350,000 |  |  |  | 2.2 |
$ | 1.97 |  |  |  | 2,006,378 |  |  |  | 0.2 |  |  |  | 2,006,378 |  |  |  | 0.2 |
|  |  |  |  | 13,056,378 |  |  |  | 3.4 |  |  |  | 12,856,378 |  |  |  | 3.4 |
Stock-based Compensation On September 30, 2008, the Company’s shareholders approved its 2008 Incentive Stock Plan (the “Plan”). The Plan was subsequently amended in 2010 and 2012 to increase the maximum aggregate number of stock awards to 5,000,000 shares, plus any shares remaining available for grant under existing plans. Under existing plans, only a limited number of shares remained available for grant. The Company has two other equity-based compensation plans under which options are currently outstanding; however, no new awards may be granted under these plans as they have been terminated or have expired. At December 31, 2012, there are 3.3 million shares available in the Plan for grant. Generally, stock options are granted at fair market value and expire ten years after the grant date. Employee grants generally vest in three or four years, while grants to non-employee directors generally vest in one year. Executive officers and certain other employees have been awarded options with different vesting criteria. The specific terms of each grant are determined by the Compensation Committee of the Company’s Board of Directors. Stock-based compensation expense is attributed to the granting of stock options and restricted stock awards. For all stock-based awards, we recognize compensation expense using a straight-line amortization method. The impact on our results for stock-based compensation was as follows (in thousands):
|  | Years ended December 31, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
Cost of sales |  | $ | - |  |  | $ | - |  |  | $ | 2 |
Research and development |  |  | 27 |  |  |  | 37 |  |  |  | 43 |
Sales and marketing |  |  | 27 |  |  |  | 141 |  |  |  | 96 |
General and administrative |  |  | 146 |  |  |  | 248 |  |  |  | 737 |
Total stock-based compensation |  | $ | 200 |  |  | $ | 426 |  |  | $ | 878 |
At December 31, 2012 and 2011, the Company had unamortized stock compensation expense of $228 thousand and $373 thousand, respectively. The remaining weighted average life was approximately 1.0 and 1.3 years as of December 31, 2012 and 2011, respectively. Stock Options The per share weighted average fair value of stock options granted during 2012, 2011, and 2010 was $0.15, $0.47 and $0.80, respectively. We estimate the fair value of each stock option on the date of grant using the Black-Scholes option pricing model and the following assumptions:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Expected life of option (years) |  |  | 5.6 |  |  |  | 6.1 |  |  |  | 4.0 |
Risk-free interest rate |  |  | 0.82 | % |  |  | 2.36 | % |  |  | 1.61 | %
Expected volatility |  |  | 59.00 | % |  |  | 56.35 | % |  |  | 98.31 | %
Dividend yield |  |  | 0 | % |  |  | 0 | % |  |  | 0 | %
The estimated expected life of the option is calculated based on contractual life of the option, the vesting life of the option, and historical exercise patterns of vested options. The risk-free interest rate is based on U.S. treasury security rates corresponding to the expected term in effect as of the grant date. As the Company’s stock is thinly traded, the volatility estimates are calculated using historical pricing experience of a peer group over the most recent period corresponding to the expected term as of the grant date. The Company has not paid dividends in the past, and does not expect to pay dividends over the corresponding expected term as of the grant date. Options outstanding under all plans at December 31, 2012 have a contractual life of ten years, and vesting periods between one and four years. A summary of option activity under all plans was as follows:
|  | Number of Options |  |  | Weighted Average Exercise Price Per Share |
Outstanding at December 31, 2009 |  |  | 1,769,750 |  |  | $ | 3.63 |
Granted |  |  | 1,115,000 |  |  |  | 1.08 |
Cancelled |  |  | (993,583 | ) |  |  | 1.68 |
Exercised |  |  | (13,750 | ) |  |  | 0.60 |
Outstanding at December 31, 2010 |  |  | 1,877,417 |  |  | $ | 3.36 |
Granted |  |  | 1,040,000 |  |  |  | 0.84 |
Cancelled |  |  | (591,419 | ) |  |  | 2.99 |
Exercised |  |  | (7,500 | ) |  |  | 0.60 |
Outstanding at December 31, 2011 |  |  | 2,318,498 |  |  | $ | 2.28 |
Granted |  |  | 120,000 |  |  |  | 0.27 |
Cancelled |  |  | (253,915 | ) |  |  | 2.22 |
Exercised |  |  | - |  |  |  | - |
Outstanding at December 31, 2012 |  |  | 2,184,583 |  |  | $ | 2.20 |
Vested and Expected to Vest at December 31, 2012 |  |  | 2,058,833 |  |  | $ | 2.29 |
Exercisable at December 31, 2012 |  |  | 1,494,063 |  |  | $ | 2.87 |
The “Expected to Vest” option are the unvested options that remain after applying the pre-vesting forfeiture rate assumption to total unvested options. The options outstanding at December 31, 2012 have been segregated into ranges for additional disclosure as follows:
Range of Exercise Prices |  |  | Number of Shares Outstanding |  |  | Weighted Average Remaining Contactual Life |  |  | Weighted Average Exercise Price |  |  | Number Exercisable |  |  | Weighted Average Exercise Price |
|  |  |  |  |  | (in years) |  |  |  |  |  |  |  |  |  |
| $0.26 | - | $0.71 |  |  |  | 729,500 |  |  |  | 8.2 |  |  | $ | 0.52 |  |  |  | 341,279 |  |  | $ | 0.56 |
| $1.00 | - | $1.40 |  |  |  | 803,333 |  |  |  | 7.5 |  |  | $ | 1.16 |  |  |  | 501,034 |  |  | $ | 1.07 |
| $2.00 | - | $3.35 |  |  |  | 248,750 |  |  |  | 5.0 |  |  | $ | 2.12 |  |  |  | 248,750 |  |  | $ | 2.12 |
| $4.91 | - | $6.45 |  |  |  | 167,000 |  |  |  | 4.5 |  |  | $ | 6.04 |  |  |  | 167,000 |  |  | $ | 6.04 |
| $7.00 | - | $11.66 |  |  |  | 236,000 |  |  |  | 2.7 |  |  | $ | 8.29 |  |  |  | 236,000 |  |  | $ | 8.29 |
|  |  |  |  |  |  | 2,184,583 |  |  |  | 6.7 |  |  | $ | 2.20 |  |  |  | 1,494,063 |  |  |  | 2.87 |
Restricted Stock In the past, the Company has issued restricted stock to Executive Officers and Director in lieu of a portion of cash compensation or Directors’ fees. Additionally, in 2010 a key employee was issued restricted stock as a bonus. The restricted stock was valued at the fair market value of the Company’s Common Stock on grant date, and expense was amortized over the applicable service period. A summary of restricted stock activity was as follows:
|  | Restricted Stock Outstanding |  |  | Weighted Average Grant Date Fair Value |
At December 31, 2009 |  |  | 228,128 |  |  | $ | 0.67 |
Granted |  |  | 392,490 |  |  |  | 1.01 |
Vested |  |  | (122,989 | ) |  |  | 1.51 |
At December 31, 2010 |  |  | 497,629 |  |  | $ | 0.73 |
Granted |  |  | 114,767 |  |  |  | 0.96 |
Vested |  |  | (197,721 | ) |  | $ | 0.87 |
At December 31, 2011 |  |  | 414,675 |  |  | $ | 0.73 |
Granted |  |  | - |  |  |  | - |
Vested |  |  | - |  |  |  | - |
At December 31, 2012 |  |  | 414,675 |  |  | $ | 0.73 |
1994 Employee Stock Purchase Plan A total of 600,000 shares of common stock have been reserved for issuance under the 1994 Employee Stock Purchase Plan, as amended. The plan permits eligible employees to purchase common stock through payroll deductions at a price equal to the lower of 85% of the fair market value of the Company’s common stock at the beginning or end of the offering period. Employees may end their participation at any time during the offering period, and participation ends automatically on termination of employment with the Company. At December 31, 2012, 2011, and 2010, approximately 476,000, 291,000 and 134,000 shares had been issued under this plan since inception, respectively.

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- Definition The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Glossary Preferred Stock -URI http://asc.fasb.org/extlink&oid=6521494 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SAB TOPIC 4.C) -URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Section B -Paragraph 7, 11A -Chapter 1 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section C Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph d -Article 4 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.29-31) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 4.E) -URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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