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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, 2012 and 2011:
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|
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Three Months Ended
September 30, |
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Nine months Ended
September 30, |
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(in thousands, except per share amounts)
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|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Research and development
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|
$ |
148 |
|
|
$ |
70 |
|
|
$ |
878 |
|
|
$ |
229 |
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|
General and administrative
|
|
|
217 |
|
|
|
169 |
|
|
|
1,355 |
|
|
|
579 |
|
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|
|
|
|
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|
|
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|
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Total stock-based compensation expenses
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$ |
365 |
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|
$ |
239 |
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|
$ |
2,233 |
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|
$ |
808 |
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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, 2012 and 2011:
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Three Months Ended
September 30, |
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Nine months Ended
September 30, |
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2012 |
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2011 |
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|
2012 |
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2011 |
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Weighted-average risk-free interest rate
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|
0.9 |
% |
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2.3 |
% |
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|
0.9 |
% |
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2.3 |
% |
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Expected dividend payments
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|
— |
|
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|
— |
|
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|
— |
|
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|
— |
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Expected holding period (years)
1
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5.1 |
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5.4 |
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|
5.1 |
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5.4 |
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Weighted-average volatility factor
2
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1.74 |
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1.71 |
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1.74 |
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|
1.71 |
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Estimated forfeiture rates for options granted to management
3
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|
23 |
% |
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23 |
% |
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|
23 |
% |
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|
23 |
% |
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Estimated forfeiture rates for options granted to non-management
3
|
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|
41 |
% |
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|
41 |
% |
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|
41 |
% |
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|
41 |
% |
| (1) |
Expected holding periods are based on the simplified method provided in Staff Accounting Bulletin No. 107 for “plain vanilla options.”
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| (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 or awards were granted during the three month periods ended September 30, 2012 and 2011.
The following table summarizes option activity for the nine month
period ended September 30, 2012:
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(in thousands, except per share amounts)
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Options |
|
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Weighted
Average
Exercise
Price |
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Weighted
Average
Remaining
Option
Term |
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Aggregate
Intrinsic
Value |
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Outstanding at January 1, 2012
|
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5,414 |
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$ |
1.61 |
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|
6.53 |
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$ |
802 |
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Granted
|
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|
1,718 |
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|
1.14 |
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|
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Exercised
|
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|
— |
|
|
|
— |
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|
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Expired or cancelled
|
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|
(290 |
) |
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5.54 |
|
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|
|
|
|
|
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Forfeited
|
|
|
— |
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— |
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Outstanding at September 30, 2012
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6,842 |
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$ |
1.33 |
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|
|
6.09 |
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$ |
559 |
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Exercisable at September 30, 2012
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5,800 |
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$ |
1.35 |
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6.65 |
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$ |
498 |
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As of September 30, 2012 there was approximately $0.6 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 0.5 years.
No shares
of restricted stock were awarded to employees, directors and consultants during the three and nine month periods ended September 30, 2012.
The following table
summarizes restricted stock activity for the nine month period ended September 30, 2012:
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(in thousands, except per share amounts)
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Shares |
|
|
Weighted
Average
Exercise
Price |
|
|
Weighted
Average
Remaining
Contractual
Term |
|
|
Aggregate
Intrinsic
Value |
|
|
Outstanding at January 1, 2012
|
|
|
181 |
|
|
$ |
— |
|
|
|
9.3 |
|
|
$ |
206 |
|
|
Awarded
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
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Exercised or released
|
|
|
(181 |
) |
|
|
— |
|
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Cancelled
|
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|
— |
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— |
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Outstanding at September 30, 2012
|
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|
— |
|
|
$ |
— |
|
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|
— |
|
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$ |
— |
|
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Vested at September 30, 2012
|
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|
— |
|
|
$ |
— |
|
|
|
— |
|
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$ |
— |
|
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As of September 30, 2012 there was no unrecognized compensation expense related to non-vested awards.
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