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9. Stock-Based Compensation
 12 Months Ended
Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
9. Stock-Based Compensation

 

9. Stock-Based Compensation

 

Common Stock Reserved for Issuance

 

Aemetis authorized the issuance of 8,600,434 shares under its 2007 Stock Plan and the former Zymetis, Inc. Stock Plan for stock option awards, which includes both incentive and non-statutory stock options. These options generally expire five years from the date of grant and are exercisable at any time after the date of the grant, subject to vesting.

 

The following is a summary of options granted under the employee stock plans:

 

    Shares Available     Number of Shares     Weighted-Average  
    For Grant     Outstanding     Exercise Price  
                         
Balance as of December 31, 2009     185,410       4,697,000     $ 1.37  
Authorized     908,734       -       -  
Granted     (1,694,144 )     1,694,144       0.19  
Forfeited     610,167       (610,167 )     1.32  
Balance as of December 31, 2010     10,167       5,780,977       1.02  
Authorized     959,290       -       -  
Merger with Zymetis, Inc. Plan     323,817       1,421,183       0.41  
Exercised     -       (35,585 )     0.06  
Forfeited/Expired/Shares from Cashless exercise     362,874       (362,874 )     0.20  
Balance as of December 31, 2011     1,656,148       6,803,701       0.94  

 

The weighted average remaining contractual term for the Stock Plans at December 31, 2011 and 2010 were 2.59 and 3.41 years, respectively. The weighted average grant date fair value per share of the awards issued during the year ended 2010 was $0.07.

 

The 35,585 shares of common stock exercised from the Company’s stock plans during 2011 had an intrinsic value of $24,041 at time of exercise. The weighted average strike price for the shares exercised was $0.06 per share and the weighted average closing market price at time of exercise was $0.74. The exercised shares hold a restrictive legend.

  

At December 31, 2011 and 2010 the weighted average remaining contractual term of shares issued to Aemetis consultants were 1.66 and 2.21 years, respectively. The Company recorded an expense for the years ended December 31, 2011 and 2010 in the amount of $24,533 and $4,553, respectively, which reflects periodic fair value re-measurement of outstanding consultant options under ASC 505-50-30 Equity Based Payments to Non Employees. The valuation using the Black-Scholes-Merton model is based upon the current market value of the Company’s common stock and other current assumptions, including the expected term (contractual term for consultant options). The Company records the expense related to consultant options using the accelerated expense pattern prescribed in ASC 505-50-30. Vested and unvested options outstanding under the Aemetis Stock Option Plans as of December 31, 2011 and 2010 follow:

 

          Weighted     Remaining        
          Average     Contractual     Aggregate  
    Number of     Exercise     Term     Intrinsic  
    Shares     Price     (In Years)     Value1  
                         
2010                        
Vested     4,027,916     $ 1.37       3.36     $ -  
Unvested     1,753,061       0.23       4.01       -  
Total     5,780,977     $ 1.02       3.56     $ -  
                                 
2011                                
Vested     5,960,116     $ 1.05       2.57     $ 316,388  
Unvested     843,585       0.17       3.15       -  
Total     6,803,701     $ 0.94       2.64     $ 316,388  

 

———————

(1) Based on the $0.70 closing price of Aemetis stock on December 31, 2011, as reported on the Over-the-Counter Bulletin Board, certain option holders of 946,050 shares from the 2006 Employee Option Plan had $316,388 in aggregate intrinsic value. The option holders under the 2007 Amended and Restated Stock Option Plan carried no aggregate intrinsic value on December 31, 2011. Based on the $0.14 closing price of Aemetis stock on December 31, 2010, as reported on the Over-the-Counter Bulletin Board, options had no aggregate intrinsic value.

  

Valuation and Expense Information

 

The weighted-average fair value calculations for options granted within the period are based on the following weighted average assumptions:

 

   

Fiscal Year Ended

December 31

  
    2011     2010  
               
Dividend-yield     0 %   0 %
Risk-free interest rate     0.20-1.80 %   1.22-2.37 % 
Expected volatility     90.38-103.22 %     58.88-120.90 %
Expected life (years)     0.2-4.0       3.12  
Weighted average fair value per share of common stock   $ 0.10     $ 0.07  

 

The Company incurred non-cash stock compensation expense of $177,278 and $377,669 in fiscal 2011 and 2010, respectively, for options granted to employees and consultants. As of December 31, 2011 and 2010, the Company had $38,690 and $16,325 respectively, of total unrecognized compensation expenses that the Company will amortize over the next five fiscal years.