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Stock Options Plans
 6 Months Ended
Jun. 30, 2013
Stock Options Plans [Abstract]  
Stock Options Plans
(8)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 six months ended June 30, 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
  
923,220
  
$
0.46-$2.13
   
2.08
     
Forfeited
  
(517,441
)
 
$
1.31-$8.50
   
3.45
     
Expired
  
(20,000
)
 
$
1.87-$1.87
   
1.87
     
Outstanding at June 30, 2013
  
5,174,666
  
$
0.46-$15.54
  
$
4.45
   
6.75
 

For the three and six months ended June 30, 2013, the Company recognized compensation expense of approximately $0.1 million and $0.6 million, respectively, relating to stock options granted to employees. For the three and six months ended June 30, 2012, the Company recognized compensation expense of approximately $0.7 million and $1.4 million, respectively, relating to stock options granted to employees.

The Company accounts for stock-based compensation for employees in accordance with the provisions of ASC 718. An option pricing model is used 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 in accordance with the provisions of ASC 505, which requires using the fair-value method. Under this method, the award is re-measured at each reporting date until the award has 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,
 
 
2013
 
2012
Dividend yield
 
None
 
None
Expected volatility
 
86.16%-93.68%
 
77.37% - 80.3%
Weighted average volatility
 
86.21%
 
78.91%
Risk-free interest rates
 
0.99%-1.36%
 
0.78% - 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 maturities 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 six months ended June 30, 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
  
259,750
   
0.43
 
Vested
  
(307,488
)
  
2.54
 
Forfeited
  
(56,985
)
  
4.18
 
Non-vested at June 30, 2013
  
396,745
  
$
1.82
 

For the three and six months ended June 30, 2013, the Company recognized compensation expense of $0.1 million and $0.2 million, respectively, relating to restricted stock granted to employees. For the three and six months ended June 30, 2012, the Company recognized compensation expense of approximately $0.2 million and $0.5 million, respectively, relating to restricted stock granted to employees.