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STOCKHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
STOCKHOLDERS' EQUITY

 

NOTE 5. STOCKHOLDERS’ EQUITY

 

On October 20, 2010, the Company appointed John N. Bonfiglio, Ph.D. as Chief Executive Officer and President of the Company. Dr. Bonfiglio was also appointed as a director on the Company’s Board. The Board granted Dr. Bonfiglio a stock option for 400,000 shares of common stock and issued 50,000 shares of restricted common stock in accordance with the Company’s 2007 Incentive Stock and Awards Plan. The stock option and the restricted common stock will vest as follows: 25% of the option shares and the restricted stock shall vest immediately upon grant, with the balance of the option shares and the restricted stock vesting in equal monthly installments over the next 36 months beginning 30 days after the grant date. The restricted stock was valued at $0.80 per share, the reported closing price of the Company’s common stock on October 20, 2010. On May 13, 2011 the Board accepted the resignation of Dr. Bonfiglio, Ph.D. as Chief Executive Officer and President of the Company and as a director on the Board. As a result of Dr. Bonfiglio’s resignation, of the 50,000 shares of restricted stock awarded to him, 18,750 shares had vested and 31,250 shares were returned to treasury and cancelled effective his date of resignation. For the three and six months ended June 30, 2011, the Company recorded a stock-based compensation expense related to the issuance and partial vesting of the restricted stock award of $833 and $3,332, respectively.

 

For the three and six months ended June 30, 2011, 2010 and for the period from Inception through June 30, 2011, the Company recorded stock-based compensation expense for employees, directors and consultants of $43,544, $112,364, $88,588, $346,188 and $2,049,027, respectively, for options and restricted stock granted and vested which is included in selling, general and administrative expenses and research and development expenses for the three and six months ended June 30, 2011, 2010 and for the period from Inception through June 30, 2011 in the amount of $24,156 and $19,388, $74,610 and $37,754, $58,254 and $30,334, $282,317 and $63,871 and $1,434,356, and $614,671, respectively. For the three and six months ended June 30, 2011, 2010 and for the period from Inception through June 30, 2011, the Company amortized $0 and $0, $0 and $53,866 and $807,608, respectively, of prepaid consulting fees which is included as part of selling, general and administrative expenses.