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Stockholders' Equity
 12 Months Ended
Dec. 31, 2011
Stockholders' Equity [Abstract]  
Stockholders' Equity
(3)
Stockholders' Equity
 
Stock Issuances

In September 2007, the Company completed the sale of 3,833,108 shares of its common stock and the issuance of warrants to purchase 1,916,554 common shares (the “2007 Warrants” and together with the 2009 Warrants, the “Warrants”) in a private placement to institutional and accredited investors. The Company received net proceeds of $13.3 million in this transaction. The Company allocated $4.3 million of the total proceeds to 2007 Warrants (see below). The fair value of the 2007 Warrants on September 24, 2007 was determined using an option pricing model assuming a risk free interest rate of 4.20%, volatility of 81.30% and an expected life equal to the contractual life of the warrants (September 2012). The 2007 Warrants were initially exercisable at $4.53 per share beginning six months after the issuance thereof and will expire on September 21, 2012. As required by the 2007 Warrant agreement, both the exercise price and number of warrants were adjusted following the Company's June 9, 2009 sale of common stock. The 2007 Warrants are currently exercisable at $3.44 per share with 1,469,456 warrants outstanding at December 31, 2011. The shares were issued pursuant to an effective registration statement on Form S-3.
 
In June 2009, the Company completed the sale of 869,565 shares of its common stock and the issuance of warrants to purchase 1,043,478 common shares (the “2009 Warrants”) pursuant to a subscription agreement with a single investor. The Company received gross proceeds of $3.0 million, with net cash proceeds after related expenses from this transaction of approximately $2.7 million. Of those proceeds, the Company allocated an estimated fair value of $2.2 million to the 2009 Warrants (see below), resulting in net proceeds of $0.5 million. The fair value of the 2009 Warrants on June 15, 2009 was determined using an option pricing model assuming a risk free interest rate of 2.75%, volatility of 72.93% and an expected life equal to the contractual life of the warrants (June 2014). The 2009 Warrants are currently exercisable at $3.60 per share with 1,043,478 warrants outstanding at December 31, 2011 and will expire on June 15, 2014. The shares and warrants were issued pursuant to an effective registration statement on Form S-3.
 
The $2.2 million in proceeds allocated to the 2009 Warrants and the $4.3 million in proceeds allocated to the 2007 Warrants are classified as derivative instrument liabilities. The 2007 Warrants are subject to “full ratchet” protection upon certain equity issuances below $3.44 per share (as may be further adjusted). The 2009 Warrants are subject to a potential adjustment in the exercise price adjustment upon certain equity issuances below $3.60 per share (as may be further adjusted). The Warrants are therefore considered to be derivative instrument liabilities that are subject to mark-to-market adjustment each period. As a result, for the twelve month period ended December 31, 2011, the Company recorded pre-tax derivative instrument income of $15.6 million. The resulting derivative instrument liabilities totaled $2.5 million at December 31, 2011. Management expects that the Warrants will either be exercised or expire worthless, at which point the then existing derivative instrument liabilities will be credited to stockholders' equity. The fair value of the Warrants at December 31, 2011 was determined by using an option pricing model assuming a risk free interest rate of 0.30% for the 2009 Warrants and 0.09% for the 2007 Warrants, volatility of 79.14% for the 2009 Warrants and 85.05% for the 2007 Warrants and an expected life equal to the contractual life of the Warrants (June 2014 and September 2012, respectively).
 
In August 2010, the Company completed the sale of 5,185,000 shares of its common stock pursuant to an underwriting agreement, raising approximately $33.5 million after expenses. The shares were issued pursuant to an effective registration statement on Form S-3 (333-165677).
 
In July 2011, the Company completed the sale of 5,000,000 shares of its common stock pursuant to an underwriting agreement, raising approximately $23.5 million after expenses. The shares were issued pursuant to an effective registration statement on Form S-3 (333-165677).
 
Common Stock Repurchases
Pursuant to a stock repurchase plan approved in 2002 by the Company's board of directors, the Company repurchased 28,100 shares of common stock for $51,103 during 2002. The Company had been authorized by the board of directors to purchase up to seven percent of its then outstanding common stock (290,289).
 
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 2011, 2010, and 2009 is as follows:
 
 
 
Number of
Options
  
Exercise Price
per Share
  
Weighted Average
Exercise Price
  
Weighted
Average
 Remaining
Life
(Years)
 
                 
Outstanding at December 31, 2008
  1,460,000  $1.23–6.18  $3.44   3.68 
Granted
  1,885,000   1.24-6.09   3.94     
Expired
 
-
             
Exercised
 
-
             
Outstanding at December 31, 2009
  3,345,000  $1.23–6.18  $3.72   6.58 
Granted
  700,650   5.28-15.54   9.81     
Expired
  (120,000)  2.78-3.59   3.25     
Forfeited
  (25,000)  4.12-6.18   4.81     
Exercised
  (140,000)  1.43-6.18   3.52     
Outstanding at December 31, 2010
  3,760,650  $1.23-15.54  $4.88   6.65 
Granted
  671,326   2.00-9.18   5.72     
Expired
  (120,000)  3.28   3.28     
Forfeited
  (136,900)  1.40-9.93   4.65     
Exercised
  (45,327)  2.44-3.28   3.18     
Outstanding at December 31, 2011
  4,129,749  $1.23-15.54  $5.09   6.38 
                 
Exercisable at December 31, 2011
  2,971,381  $1.23-15.54  $4.56   5.42 

The estimated fair value of each option award granted was determined on the date of grant using an option pricing model with the following assumptions for option grants during the years ended December 31, 2011, 2010 and 2009:
 
 
 
Year Ended December 31,
 
 
 
2011
  
2010
  
2009
 
Weighted average risk-free interest rate
  2.07%  2.54%  2.44%
Weighted average expected volatility
  74.64%  73.80%  74.58%
Expected volatility
  73.88%-79.11%  72.16% - 75.4%  73.12% - 86.0%
Dividend yield
  0%  0.00%  0.00%
Weighted average expected option term (in years)
  6.00   5.87   5.32 
Weighted average grant date fair value
 $3.79  $6.30  $2.61 

No dividend yield was assumed because the Company has never paid a cash dividend on its common stock. Volatilities were developed using the Company's historical volatility.  The risk-free interest rate was developed using the U.S. Treasury yield for periods equal to the expected life of the stock options on the grant date. The expected holding period was developed based on the mid-point between the vesting date and the expiration date of each respective grant as permitted under FASB ASC 718. This method of determining the expected holding period was utilized because the Company does not have sufficient historical experience from which to estimate the period.
 
A summary of the Company's non-vested options to purchase shares as of December 31, 2011 and changes during the twelve months ended December 31, 2011 and December 31, 2010 are presented below:

   
Non-Vested Options
 
   
Number of
Options
  
Weighted
Average
Fair Value
 
   
 
  
 
 
Non-vested at January 1, 2010
  1,516,916  $4.09 
Granted
  599,400   9.38 
Vested
  (729,000)  4.12 
Forfeited
  (25,000)  4.81 
Non-vested at December 31, 2010
  1,362,316  $6.39 
Granted
  670,826   5.72 
Vested
  (812,874)  5.60 
Forfeited
  (61,900)  8.58 
Non-vested at December 31, 2011
  1,158,368  $6.44 
 
Compensation expense recognized relating to stock options granted to employees totaled $3.6 million, $3.6 million, and $1.6 million, in 2011, 2010, and 2009, respectively. Since inception, the Company has recognized $14.4 million in expense related to stock option compensation. In 2011, $2.2 million was charged to general and administrative expenses, while $1.4 million was charged to research and development expenses. In 2010, $2.5 million was charged to general and administrative expenses, while $1.1 million was charged to research and development expenses. In 2009, $0.7 million was charged to general and administrative expenses, while $0.9 million was charged to research and development expenses. Additional compensation expense of $2.1 million, relating to the unvested portion of stock options granted, is expected to be recognized over a remaining average period of 1.83 years.

The aggregate intrinsic value of options outstanding and options exercisable at December 31, 2011 is $0.6 million. The aggregate intrinsic value represents the total pretax intrinsic value, based on options with an exercise price less than the Company's closing stock price of $3.05 as of December 31, 2011, which would have been received by the option holders had those option holders exercised their options as of that date.

A summary of the Company's restricted stock activity as of December 31, 2011 and changes during the twelve months ended December 31, 2011 and December 31, 2010 are presented below:
 
   
Restricted Stock Activity
 
   
Number of Shares
  
Weighted Average
Grant Date Fair Value
 
   
 
  
 
 
Non-vested at January 1, 2010
  307,910  $5.23 
Granted
  56,132   11.16 
Vested
  (296,452)  6.02 
Forfeited
  -     
Non-vested at December 31, 2010
  67,590  $6.71 
Granted
  188,277   5.67 
Vested
  (47,270)  5.62 
Forfeited
  (15,065)  8.35 
Non-vested at December 31, 2011
  193,532  $5.84 

Compensation expense recognized relating to restricted stock granted to employees totaled $0.7 million, $1.7 million, and $0.7 million, in 2011, 2010, and 2009, respectively. Since inception, the Company has recognized $4.2 million in expense related to restricted stock and warrant compensation. In 2011, $0.5 million was charged to general and administrative expenses, while $0.1 million was charged to research and development expenses. In 2010, $0.8 million was charged to both general and administrative expenses and to research and development expenses. In 2009, $0.2 million was charged to general and administrative expenses, while $0.6 million was charged to research and development expenses. Additional compensation expense of $0.6 million relating to the unvested portion of restricted stock granted, is expected to be recognized over a remaining average period of 2.35 years.
 
Warrants
A summary of warrant activity is as follows:
 
 
 
The Plans
 
 
 
Warrants
  
Exercise Price
per Share
  
Weighted
Average
Exercise Price
  
Weighted
Average
Remaining Life
(Years)
 
                 
Outstanding at December 31, 2008
  2,464,087  $3.01–4.53  $4.30   3.15 
Issued
  1,650,760   3.44–3.60   3.54     
Exercised
  (103,512)  3.44   3.44     
Expired
  (265,151)  3.01   3.01     
Outstanding at December 31, 2009
  3,746,184  $3.44–3.91  $3.52   3.08 
Issued
  –             
Exercised
  (1,159,000)  3.44–3.91   3.52     
Expired
  (74,250)  3.91   3.91     
Outstanding at December 31, 2010
  2,512,934  $3.44-3.60  $3.51   2.45 
Issued
  –             
Exercised
  –             
Expired
  –             
Outstanding at December 31, 2011
  2,512,934  $3.44-3.60  $3.51   1.45