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Share-based Compensation
 9 Months Ended
Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-based Compensation
Share-based Compensation

Share-based compensation expense has been recorded as follows:

 
Three months ended September 30,
 
Nine months ended September 30,
 
2012
 
2011
 
2012
 
2011
Cost of goods sold
$
2

 
$
—

 
$
3

 
$
—

Sales and marketing
15

 
4

 
45

 
14

Research and product development
9

 
4

 
26

 
12

General and administrative
39

 
40

 
102

 
105

 
$
65

 
$
48

 
$
176

 
$
131


As of September 30, 2012, the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $680, which will be recognized over a weighted average period of 2.95 years.

During the three and nine months ended September 30, 2012, we granted 92,000 and 187,000 stock options, respectively. During the three and nine months ended September 30, 2011, we granted 96,611 and 101,611 stock options, respectively. We use judgment in determining the fair value of the share-based payments on the date of grant using an option-pricing model with assumptions regarding a number of highly complex and subjective variables.  These variables include the risk-free interest rate of the awards, the expected life of the awards, the expected volatility over the term of the awards, the expected dividends of the awards, and an estimate of the amount of awards that are expected to be forfeited.  We use the Black-Scholes option pricing model to determine the fair value of share-based payments granted under ASC Topic 718.

In applying the Black-Scholes methodology to the options granted, the Company used the following assumptions:

 
Three months ended September 30,
 
Nine months ended September 30,
 
2012
 
2011
 
2012
 
2011
Risk-free interest rate, average
1.1%
 
1.4%
 
1.3%
 
1.7%
Expected option life, average
7.3 years
 
7.1 years
 
7.2 years
 
7.0 years
Expected price volatility, average
51.1%
 
51.9%
 
51.4%
 
51.8%
Expected dividend yield
0.0%
 
0.0%
 
0.0%
 
0.0%
Weighted average per share fair value
$2.13
 
$3.35
 
$2.19
 
$3.16