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10. Stock Based Compensation

9 Months Ended

Sep. 30, 2013

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:

Nine Months Ended	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		(2,816,000	)		2,816,000			0.59
Exercised		—			(153,846	)		0.45
Forfeited/expired		554,154			(554,154	)		1.43
Balance as of September 30, 2013		351,204			9,632,834		$	0.55

For the three months ended September 30, 2013 and 2012 the Company recorded option expenses in the amount of $143,939 and 16,789, respectively. Included in the three months ended September 30, 2013 and 2012 option expenses were $1,297 and $7,602, respectively, of outstanding consultant options subject to periodic fair value re-measurement under ASC 505-50-30 Equity Based Payments to Non Employees.

For the nine months ended September 30, 2013 and 2012 the Company recorded options expenses in the amount of $387,745 and 81,890, respectively. Included in the nine months ended September 30, 2013 and 2012 option expenses were $9,875 and $30,582, respectively, of outstanding consultant options subject to periodic fair value measurement.

In addition, for three months ended September 30, 2013, the Company granted 2,150,000 common stock warrants at $0.40 per warrant to employees and board members and recognized $636,290 expense on these warrants.

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 consultant and employee options are based on the following weighted average assumptions:

	As of September 30,
	2013			2012
Dividend-yield		0	%	0		%
Risk-free interest rate		0.16- 0.63	%	0.23-0.57		%
Expected volatility		64.92-74.18	%		58.88-81.24	%
Expected life (years)		1.25-3.0			0.5-4.0
Weighted average fair value per share of common stock	$	0.32 - 0.40		$	0.61

As of September 30, 2013, the Company had $1,116,385 and $9,843 of total unrecognized compensation expense for employees and non-employees respectively that the Company will amortize over the 4.36 weighted remaining terms of the option agreements.

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. All of the non-plan options remain outstanding.