Quarterly report pursuant to Section 13 or 15(d)

Stock Plans (Tables)

Stock Plans (Tables)

9 Months Ended

Sep. 30, 2012

Summary of stock-based compensation expense recorded for awards under the stock option plans

The following table summarizes the stock-based compensation expense recorded for awards under the stock option plans for the three and nine month periods ended September 30, 2012 and 2011:


	Three Months Ended September 30,				Nine months Ended September 30,
(in thousands, except per share amounts)	2012		2011		2012		2011
Research and development	$	148	$	70	$	878	$	229
General and administrative		217		169		1,355		579

Total stock-based compensation expenses	$	365	$	239	$	2,233	$	808

Schedule of assumptions used to estimate the stock-based compensation expense

We use the Black-Scholes-Merton option-pricing model with the following assumptions to estimate the stock-based compensation expense for the three and nine month periods ended September 30, 2012 and 2011:


	Three Months Ended September 30,						Nine months Ended September 30,
	2012			2011			2012			2011
Weighted-average risk-free interest rate		0.9	%		2.3	%		0.9	%		2.3	%
Expected dividend payments		—			—			—			—
Expected holding period (years)¹		5.1			5.4			5.1			5.4
Weighted-average volatility factor²		1.74			1.71			1.74			1.71
Estimated forfeiture rates for options granted to management³		23	%		23	%		23	%		23	%
Estimated forfeiture rates for options granted to non-management³		41	%		41	%		41	%		41	%

(1)	Expected holding periods are based on the simplified method provided in Staff Accounting Bulletin No. 107 for “plain vanilla options.”

(2)	Weighted average volatility is based on the historical volatility of our common stock.

(3)	Estimated forfeiture rates are based on historical data.

Summary of option activity

The following table summarizes option activity for the nine month period ended September 30, 2012:


(in thousands, except per share amounts)	Options			Weighted Average Exercise Price		Weighted Average Remaining Option Term		Aggregate Intrinsic Value
Outstanding at January 1, 2012		5,414		$	1.61		6.53	$	802
Granted		1,718			1.14
Exercised		—			—
Expired or cancelled		(290	)		5.54
Forfeited		—			—

Outstanding at September 30, 2012		6,842		$	1.33		6.09	$	559

Exercisable at September 30, 2012		5,800		$	1.35		6.65	$	498

Summary of restricted stock activity

The following table summarizes restricted stock activity for the nine month period ended September 30, 2012:


(in thousands, except per share amounts)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2012		181		$	—		9.3	$	206
Awarded		—			—
Exercised or released		(181	)		—
Cancelled		—			—

Outstanding at September 30, 2012		—		$	—		—	$	—

Vested at September 30, 2012		—		$	—		—	$	—

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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