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11. Stock Based Compensation

3 Months Ended

Mar. 31, 2013

Stockholders' deficit:

11. Stock Based Compensation

Common Stock Reserved for Issuance

Aemetis authorized the issuance of 10,600,434 shares under its 2006 and 2007 Plans, 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 for Grant				Number of Shares Outstanding				Weighted-Average Exercise Price
	Balance as of December 31, 2012				1,613,050				7,524,834			$	0.59
	Authorized				1,000,000				—				—
	Granted				(1,735,000	)			1,735,000				0.65
	Exercised				—				(153,846	)			0.45
	Forfeited/expired				346,154				(346,154	)			0.45
	Balance as of March 31, 2013				1,224,204				8,759,834			$	0.61

The Company recorded an expense for the quarter ended March 31, 2013 and 2012 in the amount of $6,587 and $15,177, 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 valuation pricing 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.

Valuation and Expense Information. The weighted-average fair value calculations for options granted within the period are based on the following weighted average assumptions:

		Quarter Ended March 31
		2013				2012
Dividend-yield			0	%		0		%
Risk-free interest rate			0.42	%		1.22-3.66		%
Expected volatility			75.55	%			58.88-120.90	%
Expected life (years)			3.0				0.2-4.0
Weighted average fair value per share of common stock		$	0.32			$	0.56

As of March 31, 2013 and 2012, the Company had $12,738 and $32,897 respectively, of total unrecognized compensation expenses that the Company will amortize over the next three years.

Non-Plan Stock Options

In November 2012 the Company issued 977,500 stock options to board members and consultants outside of any Company stock option plan. On March 14, 2013, the Company authorized and granted 410,000 stock options to board members and consultants at an average exercise price of $0.65. None of the non-plan options have been exercised.