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Stock-Based Awards
 12 Months Ended
Dec. 31, 2012
Stock-Based Awards [Abstract]  
Stock-Based Awards

6. Stock-Based Awards

Stock Options

The Company grants stock options to employees, certain directors and non-employee consultants and special advisors for services. The Company has six stock option plans, which are similar in nature (collectively, referred to as the “Plans”). Under the Plans, the Company can issue a maximum of 25,000,000 shares of Common Stock pursuant to stock options and other stock-based awards and also has issued from time to time stock-based awards outside the Plans.

Options are issued generally for terms of ten years and vest between two to four years. Options are issued with an exercise price equal to the fair value of the Company on the date of grant. Options expire on dates ranging from March 16, 2014, to November 15, 2021.

In January 2009, the Company’s Compensation Committee and Board of the Directors approved a proposal to provide eligible employees an opportunity to exercise their underwater stock options in the future at an alternative lower strike price. To obtain the full benefit of the alternative strike price, employees are required to remain with the Company for an additional 4 years. Under the program, eligible employees could exercise one quarter of their stock options each year at an alternative strike price of $1.07. The alternative strike price represented a 50% premium to the Company’s thirty day volume weighted-average price on the day the program was approved. Options prices on the programs approval date ranged from $1.75 to $9.45 with a weighted-average exercise price of $4.34. The Company is recording a charge of $589 over four years which represents the excess of the fair value of eligible options using the alternative strike price over the existing strike price. For the years ended December 31, 2012, 2011 and 2010, the Company recorded $118, $138 and $140, respectively, for this program.

 

A summary of option activity is as follows:

 

                 
    Options     Weighted-
Average
Exercise
Price		  

Outstanding January 1, 2010

     21,372,959     $ 0.57  

Granted

     860,000       2.38  

Forfeitures or expirations

     (336,868 )      2.77  

Exercised

     (452,474 )      1.15  
   

 

 

    

 

 

  

Outstanding at December 31, 2010

     21,443,617       0.60  

Granted

     825,000       5.80  

Forfeitures or expirations

     (135,316 )      2.04  

Exercised

     (1,280,687 )      0.64  
   

 

 

    

 

 

  

Outstanding at December 31, 2011

     20,852,614       0.79  

Granted

     —         0.00  

Forfeitures or expirations

     (73,907 )      1.75  

Exercised

     (8,018,516 )      0.58  
   

 

 

    

 

 

  

Outstanding at December 31, 2012

     12,760,191     $ 0.95  
   

 

 

    

 

 

  

In 2012, all of the 1,320,833 outstanding options awards granted to nonemployee consultants and special advisors were exercised with a weighted average exercise price of $1.34. There are no remaining option awards outstanding to non-employees at December 31, 2012. In 2011, 77,500 options were exercised with a weighted average exercise price of $2.38. For the years ended December 31, 2011 and 2010, 1,320,833 and 1,398,333 option awards granted to nonemployee consultants and special advisors are included in the table of option activity. These options had a weighted exercise price of $1.34 and $1.40, respectively.

The following table summarizes information on stock options outstanding at December 31, 2012:

 

                                                 
    Options Outstanding     Options Exercisable  
Range of Exercise Prices   Number
Outstanding
at
December 31,
2012		     Weighted-
Average
Remaining
Contractual
Life in Years		     Weighted-
Average
Exercise
Price		     Number
Exercisable
at
December 31,
2012		     Weighted-
Average
Exercise
Price		     Aggregate
Intrinsic
Value at
December 31,
2012		  

$0.03 – $0.45

     5,901,953       1.5     $ 0.09       5,901,953     $ 0.09     $ 35,573  

$0.70 – $0.97

     2,542,500       6.1       0.70       1,773,750       0.70       9,614  

$1.07 – $1.80

     2,267,439       4.0       1.07       1,474,609       1.07       7,445  

$2.03 – $4.03

     1,258,299       5.3       2.22       1,163,299       2.18       4,587  

$5.05 – $5.26

     470,000       8.1       5.07       12,500       5.26       11  

$6.36 – $6.82

     200,000       8.5       6.52       50,000       6.52       —    

$7.01 – $8.51

     120,000       8.7       7.48       30,000       7.48       —    
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
      12,760,191       3.7     $ 0.95       10,406,111     $ 0.63     $ 57,230  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

The Company estimated the fair value for options using the Black-Scholes Option Pricing Model. The Company did not grant options in 2012. The following assumptions were used in the option pricing model for 2011 and 2010:

The estimated weighted-average fair value for options granted in 2011 and 2010 was $3.31 and $2.38, respectively.

 

         
   

2011

  

2010

Expected life (years)

   5.0   5.0

Risk free interest rate

   0.84% to 2.32%   1.13% to 2.54%

Dividends

   —   —

Volatility

   67.00% to 70.62%   71.13% to 76.55%

The Company recognized stock-based compensation in the amount of $1,436, $2,402 and $3,824 for options awarded to employees and directors for the years ended December 31, 2012, 2011 and 2010, respectively.

The amount of unrecognized stock-based compensation relating to stock options grants as of December 31, 2012 is $1,382 and the weighted-average remaining vesting period is approximately 2.93 years.

The Company did not recognize stock-based compensation expense for option awards to nonemployee consultants and special advisors for the years ended December 31, 2012, 2011 and 2010.

The Company grants restricted stock to employees, and certain directors. All restricted stock awards require future service as a condition of delivery of the underlying shares of common stock along with certain other requirements outlined in the award agreements. Restricted stock awards generally vest over one to four years.

From time-to-time, the Company also grants restricted and common stock to nonemployee consultants and special advisors for services. In general, theses awards vest over the contractual period of the consulting arrangement. The fair value of these awards is measured at the grant dated fair value and re-measured at each reporting period. Fair value is determined as the closing price of the Company’s common stock on the date of grant.

The following table summarizes information about restricted shares outstanding for the years ended December 31, 2012, 2011 and 2010:

 

         
    Restricted
Stock Awards		  

Unvested balance at January 1, 2010

     4,430,123  

Granted

     554,011  

Vested

     (2,772,125 ) 

Forfeited

     (53,500 ) 
   

 

 

  

Unvested balance at December 31, 2010

     2,158,509  

Granted

     561,526  

Vested

     (1,382,376 ) 

Forfeited

     (26,288 ) 
   

 

 

  

Unvested balance at December 31, 2011

     1,311,371  

Granted

     1,209,114  

Vested

     (1,209,121 ) 

Forfeited

     (30,220 ) 
   

 

 

  

Unvested balance at December 31, 2012

     1,281,144  
   

 

 

  

 

As of December 31, 2012 all awards of restricted stock have vested for nonemployee consultants and special advisors. There are no remaining unvested restricted shares to non-employees or special advisors at December 31, 2012. As of December 31, 2011 and 2010, 312,500 and 750,000 shares of unvested restricted stock for awards granted to nonemployee consultants and special advisors are included in the above.

The Company recognized stock-based compensation in the amount of $3,814, $2,041 and $2,921 for restricted stock awards to employees and directors for the year ended 2012, 2011 and 2010, respectively. The amount of unrecognized stock-based compensation expense for employee restricted share grants as of December 31, 2012, is approximately $5,565 and the weighted-average remaining vesting period is approximately 2.47 years.

The Company recognized stock-based compensation expense in the amount of $2,187, $2,698 and $2,010, for restricted stock awards to nonemployee consultants and special advisors for the years ended 2012, 2011 and 2010, which is included in professional and consulting fees and other expenses on the consolidated statements of operations.

Warrants

The Company has no warrants outstanding.