Annual report pursuant to Section 13 and 15(d)

Stock Plans (Tables)

Stock Plans (Tables)

12 Months Ended

Dec. 31, 2012


	Shares or Awards Available For Grant			Number of Options and Awards Outstanding			Weighted Average Exercise Price
Balance at December 31, 2009		2,418			6,090		$	3.68
Options granted		(150	)		150		$	2.36
Options cancelled and expired		1,244			(1,243	)	$	9.11
Awards granted		(119	)		119		$	0.00

Balance at December 31, 2010		3,393			5,115		$	2.29
Options granted		(734	)		734		$	1.44
Options cancelled and expired		45			(241	)	$	15.01
Options forfeited		55			(55	)	$	1.77
Awards granted		(181	)		181		$	0.00
Awards issued		—			(139	)	$	0.00

Balance at December 31, 2011		2,578			5,595		$	1.56
Options granted		(1,718	)		1,718		$	1.14
Options cancelled and expired		290			(290	)	$	5.54
Awards issued		—			(181	)	$	0.00
Expiration of option plan		(1,150	)		—		$	0.00

Balance at December 31, 2012		—			6,842		$	1.33

Options outstanding


	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.69 - $1.53		5,499		7.22	$	1.05		4,753	$	1.04
$1.54 - $2.38		604		4.85	$	2.19		542	$	2.19
$2.39 - $3.22		642		4.27	$	2.52		642	$	2.52
$3.23 - $4.06		97		1.01	$	3.55		97	$	3.55

$0.69 - $4.06		6,842		6.65	$	1.33		6,034	$	1.35

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


	Years Ended December 31,
	2012			2011			2010
Weighted-average risk-free interest rate		0.91	%		2.3	%		2.3	%
Expected dividend payments		—			—			—
Expected holding period (years)(1)		5.1			5.4			4.2
Weighted-average volatility factor(2)		1.75			1.71			1.89
Estimated forfeiture rates for options granted to management(3)		23	%		23	%		23	%
Estimated forfeiture rates for options granted to non-management(3)		41	%		41	%		41	%

(1)	Expected holding period is based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and the expectations of future employee behavior.

(2)	Weighted average volatility is based on the historical volatility of the Company’s common stock.

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

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


	Years Ended December 31,
(in thousands, except per share amounts)	2012			2011			2010
Research and development	$	1,560		$	371		$	202
General and administrative		1,021			806			531

Total stock-based compensation expenses	$	2,581		$	1,177		$	733

Increase in basic and diluted net loss per share	$	(0.04	)	$	(0.02	)	$	(0.01	)

Summary of option activity


(in thousands, except per share amounts)	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2012		5,414		$	1.61
Granted		1,718			1.14
Cancelled		(290	)		5.54

Outstanding at December 31, 2012		6,842		$	1.33		6.65	$	722

Exercisable at December 31, 2012		6,035		$	1.35		6.44	$	675

Summary of restricted stock activity


(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		$	0.00
Shares issued		(181	)		0.00

Outstanding at December 31, 2012		—		$	0.00		—	$	—

Vested at December 31, 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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