XML 23 R15.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
9. Stock-Based Compensation
 
The following table summarizes the stock-based compensation incurred by the Company:

   
Three Months Ended June 30,
 
Six Months Ended June 30,
 
(In thousands)
 
2011
 
2010
 
2011
 
2010
 
Stock options
    $ 286     $ 235     $ 627     $ 689  
Restricted stock
      65       2       76       21  
Total
    $ 351     $ 237     $ 703     $ 710  
 
2007 Equity Incentive Compensation Plan
 
Immediately prior to the Company’s initial public offering, the Company adopted the 2007 Equity Incentive Compensation Plan (“2007 Plan”). The 2007 Plan provides for the grant of options intended to qualify as incentive stock options, non-qualified stock options, stock appreciation rights or restricted stock awards and any other equity-based or equity-related awards. The 2007 Plan is administered by the Compensation Committee of the Board of Directors. Subject to adjustment for changes in capitalization, the aggregate number of shares that may be delivered pursuant to awards under the 2007 Plan was originally 3,000,000; however in March 2011 the Board of Directors approved an adjustment to such aggregate number of shares to account for the Rights Offering and related increase in the number of authorized shares of common stock of the Company, as described in Note 7 – Stockholders’ Equity.  As a result of this adjustment, the number of shares that may be delivered pursuant to awards under the 2007 Plan is 7,100,000.  The term of the 2007 Plan is ten years, expiring in June 2017.
 
Stock Options  — Except as otherwise directed by the Compensation Committee, the exercise price for options cannot be less than the fair market value of our common stock on the grant date. Other than the stock options issued to Directors, the options will generally vest and become exercisable with respect to 30%, 30% and 40% of the shares of our common stock subject to such options on each of the first three anniversaries of the grant date. Compensation expense related to these options is expensed on a straight line basis over the three year vesting period. Options issued to Directors generally vest and become exercisable on the first anniversary of the grant date. All stock options have a five year term from the date of grant.
 
During the three and six months ended June 30, 2011, the Company did not issue any stock options under the 2007 Plan. During the three and six months ended June 30, 2010, the Company issued 25,000 and 763,932 stock options, respectively, under the 2007 Plan to certain of our employees and non-employee Directors with a per share exercise price equal to the market price of the stock on the date of grant. The determination of the fair value of the stock option awards, using the Black-Scholes model, incorporated the assumptions in the following table for stock options granted during the six months ended June 30, 2010. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant over the expected term. Expected volatility is based on the weighted average historical volatility of our common stock.
 
The weighted average variables used in calculating fair value and the resulting compensation expense in the six months ended June 30, 2011 and June 30, 2010 are as follows:

   
Six Months Ended
June 30,
 
  
 
2011
   
2010
 
Expected stock price volatility
   
N/A
     
151.4
%
Expected life (in years)
   
N/A
     
3.2
 
Risk-free interest rate
   
N/A
     
2.3
% 
Expected dividend yield
   
N/A
     
0.0
% 
Expected forfeiture rate
   
28.0
%
   
28.0
% 
Weighted average grant date fair value
 
$
N/A
   
$
2.28
 
 
A summary of the status of outstanding stock options at June 30, 2011 and the changes during the six months ended June 30, 2011 is as follows:

   
Shares
   
Weighted
Average
Exercise
Price
   
Weighted
Average
Remaining
Life
(years)
   
Aggregate
Intrinsic
Value
   
Unrecognized
Remaining
Compensation
Expense
 
Options outstanding, January 1, 2011
    1,825,305     $ 3.22    
 
   
 
   
 
 
Granted
    —       —    
 
   
 
   
 
 
Exercised
    —       —    
 
   
 
   
 
 
Forfeited
    (235,101 )     3.00                    
Options outstanding, June 30, 2011
    1,590,204     $ 3.26       3.3     $ 0.00    
 
 
Options vested or expected to vest at June 30, 2011
    1,437,781     $ 3.30       3.3     $ 0.00     $ 1,225,283  
Options exercisable, June 30, 2011
    810,208     $ 3.53       3.1     $ 0.00          
 
Restricted Stock  — During the three and six months ended June 30, 2011, the Company granted 0 and 1,746,000 shares, respectively, under the 2007 Plan to certain of our employees and our non-employee Directors. During the three and six months ended June 30, 2010, the Company granted 12,500 shares under the 2007 Plan to our non-employee Directors.
 
A summary of the restricted stock activity during the six months ended June 30, 2011 is as follows:

   
Shares
   
Weighted
Average
Grant Date
Fair Value
per Award
   
Aggregate
Intrinsic
Value
   
Unrecognized
Remaining
Compensation
Expense
 
Restricted stock outstanding, January 1, 2011
    16,415     $ 2.44    
 
         
Granted
    1,746,000       0.80    
 
         
Vested
    (13,180 )     2.17                
Cancelled or expired
    (27,735 )     1.06                
Restricted stock outstanding, June 30, 2011
    1,721,500     $ 0.80     $ 708,914          
Restricted stock expected to vest at June 30, 2011
    797,957     $ 0.82     $ 328,599     $ 563,542  
 
The remaining unrecognized option and restricted stock expense will be recognized over 1.4 and 3.4 years, respectively. After considering the stock option and restricted stock awards issued and outstanding, the Company had 3,691,712 shares of common stock available for future grant under our 2007 Plan at June 30, 2011.