Quarterly report pursuant to Section 13 or 15(d)

Stock Plans

v2.4.0.6
Stock Plans
 6 Months Ended
Jun. 30, 2012
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, 2012 and 2011:

 

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

(in thousands, except per share amounts)

   2012     2011     2012     2011  

Research and development

   $ 114     $ 103     $ 730     $ 159  

General and administrative

     202       327       1,138       410  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total stock-based compensation expenses

   $ 316     $ 430     $ 1,868     $ 569  
   

 

 

    

 

 

    

 

 

    

 

 

  

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, 2012 and 2011:

 

                                 
    Three Months Ended
June 30,		     Six months Ended
June 30,		  
    2012     2011     2012     2011  

Weighted-average risk-free interest rate

     0.7 %      2.3 %      0.9 %      2.3 % 

Expected dividend payments

     —         —         —         —    

Expected holding period (years) 1

     5.0       5.4       5.1       5.4  

Weighted-average volatility factor 2

     1.78       1.71       1.74       1.71  

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.

Based upon the above methodology, the weighted-average fair value of options and awards granted during the three month periods ended June 30, 2012 and 2011 was $0.67 and $1.38, respectively.

The following table summarizes option activity for the six month period ended June 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

     (180 )      7.87                  

Forfeited

     —         —                    
   

 

 

    

 

 

                  

Outstanding at June 30, 2012

     6,952     $ 1.33       7.04     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Exercisable at June 30, 2012

     5,666     $ 1.37       6.74     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

As of June 30, 2012 there was approximately $0.9 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 0.7 years.

No shares of restricted stock were awarded to employees, directors and consultants during the three and six month periods ended June 30, 2012. The following table summarizes restricted stock activity for the six month period ended June 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 June 30, 2012

     —       $ —         —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Vested at June 30, 2012

     —       $ —         —       $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

As of June 30, 2012 there was no unrecognized compensation expense related to non-vested awards.