Quarterly report pursuant to Section 13 or 15(d)

Stock Plans

v3.3.0.814
Stock Plans
9 Months Ended
Sep. 30, 2015
Stock Plans [Abstract]  
Stock Plans [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, 2015 and 2014:
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
(in thousands, except per share amounts)
 
2015
 
2014
 
2015
 
2014
 
Research and development
 
$
42
 
$
33
 
$
280
 
$
206
 
General and administrative
 
 
50
 
 
38
 
 
379
 
 
251
 
Total stock-based compensation expenses
 
$
92
 
$
71
 
$
659
 
$
457
 
 
 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, 2015 and 2014:
 
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
Weighted-average risk-free interest rate
 
 
1.7
%
 
1.7
%
 
1.8
%
 
2.0
%
Expected dividend payments
 
 
 
 
 
 
 
 
 
Expected holding period (years) 1
 
 
4.5
 
 
4.2
 
 
6.4
 
 
6.5
 
Weighted-average volatility factor 2
 
 
1.65
 
 
1.66
 
 
1.61
 
 
1.66
 
Estimated forfeiture rates 3
 
 
30
%
 
31
%
 
30
%
 
31
%
  
(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, 2015 and 2014.
 
The following table summarizes option activity for the nine month period ended September 30, 2015:
 
(in thousands, except per share amounts)
 
Options
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Option
Term
 
Aggregate
Intrinsic
Value
 
Outstanding at January 1, 2015
 
 
1,204
 
$
6.75
 
 
5.14
 
$
1
 
Granted
 
 
250
 
 
3.30
 
 
 
 
 
 
 
Exercised
 
 
 
 
 
 
 
 
 
 
 
Expired or cancelled
 
 
(20)
 
 
13.27
 
 
 
 
 
 
 
Forfeited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2015
 
 
1,434
 
$
6.06
 
 
5.34
 
$
202
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at September 30, 2015
 
 
1,311
 
$
6.32
 
 
4.96
 
$
111
 
 
No shares of restricted stock were awarded to employees, directors and consultants during the three month periods ended September 30, 2015 and 2014.
 
The following table summarizes restricted stock activity for the nine month period ended September 30, 2015:
 
(in thousands, except per share amounts)
 
Restricted
Stock
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Term
 
Aggregate
Intrinsic
Value
 
Outstanding at January 1, 2015
 
 
65
 
$
 
 
9.12
 
$
166
 
Granted
 
 
 
 
 
 
 
 
 
 
 
Released
 
 
(65)
 
 
 
 
 
 
 
 
 
Expired or cancelled
 
 
 
 
 
 
 
 
 
 
 
Forfeited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at September 30, 2015
 
 
 
$
 
 
 
$
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable at September 30, 2015
 
 
 
$
 
 
 
$
 
 
As of September 30, 2015, there was approximately $142,000 of unrecognized compensation expense related to non-vested stock options and restricted stock. This expense is expected to be recognized over a weighted-average period of 0.5 years.