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Stock Options Plans
 3 Months Ended
Mar. 31, 2013
Stock Options Plans [Abstract]  
Stock Options Plans
(6)
Stock Options Plans

The Company established the 2004 Stock Incentive Plan and the 2009 Stock Incentive Plan (collectively, the "Plans") under which 3,000,000 and 6,500,000 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.
 
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 three months ended March 31, 2013 is as follows:

 
Stock Option Activity under the Plans
 
 
Stock Options
 
 
Exercise Price
per Share
 
 
Weighted
Average
Exercise Price
 
 
Weighted
Average
Remaining
Life (Years)
 
Outstanding at December 31, 2012
 
 
4,788,887
 
 
$
1.23-$15.54
 
 
$
4.79
 
 
 
6.88
 
Granted
 
 
921,220
 
 
$
1.31-$2.13
 
 
 
2.08
 
 
 
 
 
Forfeited
 
 
(115,945
)
 
$
1.82-$8.50
 
 
 
3.62
 
 
 
 
 
Outstanding at March 31, 2013
 
 
5,594,162
 
 
$
1.23-$15.54
 
 
$
4.37
 
 
 
7.13
 

For the three months ended March 31, 2013, the Company recognized compensation expense of approximately $0.5 million relating to stock options granted to employees. For the three months ended March 31, 2012, the Company recognized compensation expense of approximately $0.7 million relating to stock options granted to employees.
 
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:
 
Three Months Ended March 31,
2013
2012
Dividend yield
None
None
Expected volatility
86.16% - 86.51%
77.37% - 79.24%
Weighted average volatility
86.20%
78.75%
Risk-free interest rates
1.16% - 1.36%
1.03% - 1.49%
Expected life (in years)
6.8
6.0

No dividend yield was assumed because the Company has never paid a cash dividend on its common stock and does not expect to pay dividends in the foreseeable future. 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 option term for grants made prior to June 30, 2012 was developed based on the mid-point between the vesting date and the expiration date of each respective grant as permitted under (ASC) 718. This method of determining the expected holding period was utilized because the Company did not have sufficient historical experience from which to estimate the period. The expected option term for grants made since July 1, 2012 was calculated based on actual historical results.

Restricted stock activity for the three months ended March 31, 2013 is as follows:
 
 
 
Restricted Stock Activity under the Plans
 
 
Restricted Stock
 
 
Weighted
Average Grant
Date Fair
Value
 
Non-vested at December 31, 2012
 
 
501,468
 
 
$
3.26
 
Granted
 
 
11,850
 
 
 
1.42
 
Vested
 
 
(85,378
)
 
 
4.99
 
Forfeited
 
 
(17,123
)
 
 
3.70
 
Non-vested at March 31, 2013
 
 
410,817
 
 
$
2.82
 
 
For each of the three months ended March 31, 2013 and March 31, 2012, the Company recognized compensation expense of $0.2 million relating to restricted stock granted to employees.