Quarterly report pursuant to Section 13 or 15(d)

Stock Plans

v2.4.0.6
Stock Plans
 3 Months Ended
Mar. 31, 2012
Stock Plans [Abstract]  
Stock Plans

2. Stock Plans

The following table summarizes the share-based compensation expense recorded for awards under the stock option plans for the three-month periods ended March 31, 2012 and 2011:

 

     Three Months Ended
March 31,		  

(in thousands, except per share amounts)

    2012      2011  

Research and development

    $ 616       $ 56   

General and administrative

      936         83   
  

 

 

     

 

 

  

Total share-based compensation expenses

    $ 1,552       $ 139   
  

 

 

     

 

 

  

No tax benefit was recognized related to share-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 share-based compensation expense for the three-month periods ended March 31, 2012 and 2011:

 

     Three Months Ended
March 31,		  
     2012     2011  

Weighted-average risk-free interest rate

      0.94 %      3.4 % 

Expected dividend payments

      —        —   

Expected holding period (years)1

     5.1        9.2   

Weighted-average volatility factor2

     1.74        1.39   

Estimated forfeiture rates for options granted to management3

     23 %      23 % 

Estimated forfeiture rates for options granted to non-management3

     41 %      41 % 

(1) Expected holding periods are based on historical data.
(2) Weighted average volatility is based on the historical volatility of our common stock.
(3) Estimated forfeiture rates are based on historical data.

Based upon the above methodology, the weighted-average fair value of options and awards granted during the three-month period ended March 31, 2012 was $1.09. No options or awards were granted during the three-month period ended March 31, 2011.

 

The following table summarizes option activity for the three-month period ended March 31, 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

      1,688        1.15         

Exercised

      —          —           

Expired or canceled

      (145 )      8.77         

Forfeited

      —          —           
  

 

 

    

 

 

        

Outstanding at March 31, 2012

      6,957      $ 1.35         7.26       $ 802   
  

 

 

    

 

 

     

 

 

     

 

 

  

Exercisable at March 31, 2012

      5,447      $ 1.40         6.90       $ 652   
  

 

 

    

 

 

     

 

 

     

 

 

  

As of March 31, 2012 there was approximately $1.2 million of total unrecognized compensation expense related to non-vested stock options. This expense is expected to be recognized over a weighted-average period of 1.0 year.

No shares of restricted stock were awarded to employees, directors and consultants during the three-month period ended March 31, 2012. The following table summarizes restricted stock activity for the three-month period ended March 31, 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       $ 0.00         9.3       $ 206   

Awarded

      —           —           

Exercised

      —           —           

Cancelled

      —           —           
  

 

 

     

 

 

     

 

 

     

 

 

  

Outstanding at March 31, 2012

      181       $ 0.00         9.0       $ 206   
  

 

 

     

 

 

     

 

 

     

 

 

  

Vested at March 31, 2012

      —         $ —           —         $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

As of March 31, 2012 there was approximately $10,000 of total unrecognized compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted-average period of 0.1 year.