Quarterly report pursuant to Section 13 or 15(d)

Stock Plans

v2.4.0.8
Stock Plans
 9 Months Ended
Sep. 30, 2013
Stock Plans [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
2. Stock 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, 2013 and 2012:
 
 
 
Three Months Ended
September 30,
 
Nine months Ended
September 30,
 
(in thousands, except per share amounts)
 
2013
 
2012
 
2013
 
2012
 
Research and development
 
$
11
 
$
148
 
$
367
 
$
878
 
General and administrative
 
 
10
 
 
217
 
 
289
 
 
1,355
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total stock-based compensation expenses
 
$
21
 
$
365
 
$
656
 
$
2,233
 
 
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 nine month periods ended September 30, 2013 and 2012:
 
 
 
Three Months Ended
September 30,
 
 
Nine months Ended
September 30,
 
 
 
2013
 
 
2012
 
 
2013
 
 
2012
 
Weighted-average risk-free interest rate
 
 
0.9
%
 
 
0.9
%
 
 
0.9
%
 
 
0.9
%
Expected dividend payments
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Expected holding period (years)1
 
 
3.8
 
 
 
5.1
 
 
 
4.0
 
 
 
5.1
 
Weighted-average volatility factor2
 
 
1.05
 
 
 
1.74
 
 
 
1.48
 
 
 
1.74
 
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.
 
No options were granted during the three month periods ended September 30, 2013 and  2012.
 
The following table summarizes option activity for the nine month period ended September 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 September 30, 2013
 
 
6,767
 
$
1.32
 
 
5.97
 
$
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at September 30, 2013
 
 
6,753
 
$
1.32
 
 
5.97
 
$
—
 
 
As of September 30, 2013, there was approximately $24,000 of total unrecognized compensation expense related to non-vested stock options. This expense is expected to be recognized over a weighted-average period of 0.4 years.
 
No shares of restricted stock were awarded to employees, directors and consultants during the three and nine month periods ended September 30, 2013.