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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2012
Stock-Based Compensation  
Stock-Based Compensation

 

4.       Stock-Based Compensation

 

The Company issues nonqualified and incentive stock options as well as other equity awards pursuant to its 2009 Omnibus Incentive Plan, as amended (Option Plan).  Such awards pursuant to the Option Plan may be granted by the Company’s Board of Directors to certain of the Company’s employees, directors and consultants.

 

During the three months ended March 31, 2012, the Company granted 100,000 service-based options to purchase common stock.  These options were granted with exercise prices equal to the fair value of the Company’s stock at the grant date, vest over four years and expire after ten years.  The weighted average grant-date fair value of service-based options granted under the Company’s Option Plan during the three months ended March 31, 2011 and 2012 was $1.52 and $1.22, respectively.

 

The net compensation costs recorded for the service-based stock options related to employees and directors were approximately $616,000 and $815,000 for the quarters ended March 31, 2011 and 2012, respectively.

 

The fair value of each service-based stock option grant for the reported periods is estimated on the date of the grant using the Black-Scholes option-pricing model using the weighted average assumptions noted in the following table.

 

 

 

Quarter Ended March 31,

 

Service-Based Stock Options

 

2011

 

2012

 

 

 

 

 

 

 

Expected dividend rate

 

0%

 

0

%

Expected stock price volatility

 

74.0% - 78.9%

 

73.9

%

Risk-free interest rate

 

2.7%

 

1.41

%

Expected life (years)

 

6.0 - 6.3

 

6.3

 



 

The following table summarizes the activity for service-based stock options for the indicated periods:

 

Service-Based Stock Options

 

Options

 

Weighted
Average
Exercise Price

 

Weighted Average
Remaining
Contractual Term
(Years)

 

Aggregate
Intrinsic Value

 

Outstanding at December 31, 2011

 

8,079,667

 

$

2.38

 

8.4

 

$

674,000

 

Granted

 

100,000

 

$

1.85

 

 

 

 

 

 

Exercised

 

(120,417

)

$

1.46

 

 

 

$

50,229

 

Forfeited or expired

 

(128,392

)

$

1.90

 

 

 

 

 

 

Outstanding at March 31, 2012

 

7,936,587

 

$

2.39

 

8.4

 

$

1,216,884

 

Exercisable at March 31, 2012

 

2,875,879

 

$

2.91

 

7.7

 

$

477,271

 



 

As of March 31, 2012 there was $3,778,000 of total unrecognized compensation cost related to non-vested service-based stock options granted under the Option Plan.  That cost is expected to be recognized over a weighted-average period of 2.8 years.

 

The total fair value of options vested during the quarter ended March 31, 2011 and 2012 was $376,000 and $836,000, respectively.