XML 18 R17.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Share-Based Compensation
 6 Months Ended
Jun. 30, 2010
Share-Based Compensation [Abstract]  
Share-Based Compensation
12.  Share-Based Compensation

During the first quarter of 2011, we issued to our directors, executive officers and certain non-executive employees options to purchase an aggregate of up to 692,500 shares of our common stock, with four-year vesting for our officers and employees and two-year vesting for our directors. The grant date fair value of the awards granted to our officers and employees was $3.46 and to our directors was $3.15 per share. The resulting share-based compensation expense of $2,375,000, net of estimated forfeitures, will be recognized as expense over the respective vesting periods.

We granted 246,225 performance-based restricted stock awards under the 2004 Equity Incentive Plan in February 2011. The awards provide employees until January 1, 2012 to achieve certain performance goals established by the Compensation Committee. The performance goals are weighted based on the following achievements: obtaining certain FDA clearance or approval (40%), achieving a targeted revenue increase for the fiscal year ended December 31, 2011 (20%), and entering into a major collaboration for development and/or commercialization of the Company's products (40%).  To the extent that any of the performance goals are partially achieved, the Compensation Committee maintains the discretion to continue the vesting of all or a portion of the awards following January 1, 2012.  Once earned, the awards will remain unvested until January 1, 2013. Termination of employment prior to vesting will result in the forfeiture of any earned (as well as unearned) awards.  No compensation expense was recognized related to these awards during the three and six months ended June 30, 2011 because the performance criteria have not been met, nor has the Compensation Committee exercised its discretion in determining if partial awards will be granted. The following table summarizes activity with respect to such awards during the three and six months ended June 30, 2011:
 
   
Shares
   
Weighted Average Grant Date Fair Value
 
Outstanding at January 1, 2011
   
0
      
Granted
   
246,225
   
$
5.82
 
Vested
   
0
         
Cancelled / Forfeited
   
0
         
Outstanding at June 30, 2011
   
246,225
   
$
5.82
 
Vested at June 30, 2011
   
0
         

During the first quarter of 2010, we issued to our directors, executive officers and certain non-executive employees options to purchase an aggregate of up to 1,155,000 shares of our common stock, with four-year vesting for our officers and employees and two-year vesting for our directors. The grant date fair value of the awards granted to our officers and employees was $4.07 and to our directors was $4.16 per share. The resulting share-based compensation expense of $4,713,000, net of estimated forfeitures, will be recognized as expense over the respective vesting periods.