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Stock Option Plans
 6 Months Ended
Jun. 30, 2011
Stock Option Plans [Abstract]  
Stock Option Plans
Note 5:   Stock Option Plans
The Company established the 2004 Stock Incentive Plan and the 2009 Stock Incentive Plan (collectively, the “Plans”) under which 3,000,000, and 4,200,000 shares, respectively, were reserved for the issuance of stock options, stock appreciation rights, restricted stock, stock grants and other equity awards. A stock option grant allows the holder of the option to purchase a share of the Company's common stock in the future at a stated price. The Plans are administered by the Compensation and Stock Option Committee of the board of directors which determines the individuals to whom awards shall be granted as well as the type, terms and conditions of each award, the option price and the duration of each award.
 
During 2004 and 2009, respectively, the 2004 and 2009 Stock Incentive Plans became effective. Options granted under the Plans vest as determined by the Company's Compensation and Stock Option Committee and expire over varying terms, but not more than ten years from the date of grant. Stock option activity for the six month period ended June 30, 2011 is as follows:

   
The Plans
 
   
Stock Options
  
Exercise Price
per Share
  
Weighted
Average
Exercise Price
  
Weighted
Average
Remaining
Life (Years)
 
Outstanding at December 31, 2010
  3,760,650  $1.23 – $15.54  $4.88   6.65 
Granted
  490,706   5.09 – 9.18   6.49     
Forfeited
  (12,900)  7.15 – 7.58   7.26     
Exercised
  (45,327)  2.44 – 3.28   3.18     
Outstanding at June 30, 2011
  4,193,129  $1.23 – $15.54  $5.08   6.62 
 
For the three and six months ended June 30, 2011, the Company recognized stock option compensation expense of $716,047 and $1,807,185 respectively, relating to options granted in previous years and $305,007 and $401,162 respectively, relating to options granted during 2011, for a total of $1,021,054 and $2,208,347, respectively.

For the three and six months ended June 30, 2010, the Company recognized stock option compensation expense of $909,550 and $1,542,685 respectively.

The Company uses an option pricing model to determine the fair value of stock options awarded to employees on the date of grant. The Company has expensed its stock-based compensation for share-based payments granted under the ratable method, which treats each vesting tranche as if it were an individual grant.

The Company accounts for stock-based compensation expense for non-employees using the fair-value method which requires the award to be re-measured at each reporting date until the award is vested. The Company estimates the fair value using an option pricing model. The Company has expensed its share-based compensation for non-employees under the ratable method.

The assumptions used in the option pricing model to determine the fair value of stock options awarded to employees are as follows:
 
   
Six Months Ended June 30,
 
   
2011
  
2010
 
Dividend yield
 
None
  
None
 
Expected volatility
  73.90% – 79.11%   72.16% – 75.04% 
Weighted average volatility
  74.40%   73.04% 
Risk-free interest rates
  1.9% – 2.54%   2.16% – 3.11% 
Expected life (in years)
  5.0 – 6.0   5.5 – 6.0 

For the three and six months ended June 30, 2011, the Company recognized compensation expense of $35,813 and $113,170 respectively, relating to restricted stock granted in previous years. For the three and six months ended June 30, 2011, the Company recognized $112,807 and $140,010 respectively, relating to restricted stock granted during 2011, for a total of $148,620 and $253,180, respectively.

For the three and six months ended June 30, 2010, the Company recognized restricted stock compensation expense of $679,016 and $1,020,498, respectively.