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Stock Option Plans
9 Months Ended
Sep. 30, 2011
Stock Incentive Plans [Abstract] 
Stock Incentive Plans
Note 5:   Stock Incentive 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.
 
Stock Options
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 nine month period ended September 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
   
648,591
     
3.46 – 9.18
     
6.52
         
Forfeited
   
(136,900
)
   
1.40 - 9.93
     
4.65
         
Exercised
   
(45,327
)
   
2.44 – 3.28
     
3.18
         
Outstanding at September 30, 2011
   
4,227,014
   
$
1.23 – $15.54
   
$
5.05
     
6.42
 
 
For the three and nine months ended September 30, 2011, the Company recognized stock option compensation expense of $403,350 and $2,210,535 respectively, relating to options granted in previous years and $308,951 and $710,113 respectively, relating to options granted during 2011, for a total of $712,301 and $2,920,648, respectively.

For the three and nine months ended September 30, 2010, the Company recognized stock option compensation expense of $1,124,590 and $2,667,275, 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:
 
   
Nine Months Ended September 30,
 
   
2011
   
2010
 
Dividend yield
 
None
   
None
 
Expected volatility
   
73.88% – 79.11%
     
72.16% – 75.35%
 
Weighted average volatility
   
74.55%
     
73.62%
 
Risk-free interest rates
   
1.13% – 2.54%
     
1.45% – 3.11%
 
Expected life (in years)
   
5.0 – 6.0
     
5.0 – 6.0
 

Restricted Stock
For the three and nine months ended September 30, 2011, the Company recognized compensation expense of $19,863 and $133,033 respectively, relating to restricted stock granted in previous years. For the three and nine months ended September 30, 2011, the Company recognized $164,461 and $304,470 respectively, relating to restricted stock granted during 2011, for a total of $184,324 and $437,503, respectively.

For the three and nine months ended September 30, 2010, the Company recognized restricted stock compensation expense of $251,849 and $1,272,347, respectively.