Quarterly report pursuant to Section 13 or 15(d)

Stock Plans

v2.4.0.8
Stock Plans
 6 Months Ended
Jun. 30, 2013
Stock Plans [Abstract]  
Stock Plans

2. Stock Plans

The following table summarizes the stock-based compensation expense recorded for awards under the stock option plans for the three and six month periods ended June 30, 2013 and 2012:

 

                                 
     Three Months Ended
June 30,		     Six Months Ended
June 30,		  

(in thousands, except per share amounts)

   2013     2012     2013     2012  

Research and development

   $ 52     $ 114     $ 356     $ 730  

General and administrative

     78       202       279       1,138  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total stock-based compensation expenses

   $ 130     $ 316     $ 635     $ 1,868  
   

 

 

    

 

 

    

 

 

    

 

 

  

No tax benefit was recognized related to stock-based compensation expense since we have incurred operating losses and we have established a full valuation allowance to offset all the potential tax benefits associated with our deferred tax assets.

We use the Black-Scholes-Merton option-pricing model with the following assumptions to estimate the stock-based compensation expense for the three and six month periods ended June 30, 2013 and 2012:

 

                                 
    Three Months Ended
June 30,		     Six months Ended
June 30,		  
    2013     2012     2013     2012  

Weighted-average risk-free interest rate

     1.0 %      0.7 %      0.8 %      0.9 % 

Expected dividend payments

     —         —         —         —    

Expected holding period (years) 1

     3.9       5.0       4.2       5.1  

Weighted-average volatility factor 2

     1.56       1.78       1.70       1.74  

Estimated forfeiture rates for options granted to management 3

     23 %      23 %      23 %      23 % 

Estimated forfeiture rates for options granted to non-management 3

     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.

No options were granted during the three month period ended June 30, 2013. Based upon the above methodology, the weighted-average fair value of options and awards granted during the three month period ended June 30, 2012 was $0.67 per share.

The following table summarizes option activity for the six month period ended June 30, 2013:

 

                                 

(in thousands, except per share amounts)

   Options     Weighted
Average
Exercise
Price		     Weighted
Average
Remaining
Option
Term		     Aggregate
Intrinsic
Value		  

Outstanding at January 1, 2013

     6,842     $ 1.33       6.65     $ 722  

Granted

     —         —                    

Exercised

     (75 )      1.50                  

Expired or cancelled

     —         —                    

Forfeited

     —         —                    
   

 

 

    

 

 

                  

Outstanding at June 30, 2013

     6,767     $ 1.32       6.22     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Exercisable at June 30, 2013

     6,743     $ 1.32       6.22     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

As of June 30, 2013, there was approximately $45,000 of total unrecognized compensation expense related to non-vested stock options. This expense is expected to be recognized over a weighted-average period of 0.6 years.

No shares of restricted stock were awarded to employees, directors and consultants during the three and six month periods ended June 30, 2013.