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Shareholders' Equity
 9 Months Ended
Sep. 30, 2012
Shareholders’ Equity [Abstract]  
Shareholders' Equity [Text Block]
Shareholders' Equity

Share-based Compensation

We utilize share-based compensation in the form of stock options, warrants and restricted stock.  The following table summarizes the components of share-based compensation expense for the three and nine months ended September 30, 2012 and 2011 (in thousands):

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2012
 
2011
 
2012
 
2011
Cost of goods sold
 
$
19.8

 
$
26.0

 
$
120.1

 
$
71.2

Research and development
 
102.2

 
(116.8
)
 
362.4

 
500.8

Selling, general and administrative
 
1,794.2

 
1,598.6

 
4,988.7

 
7,592.8

Total share-based compensation expense
 
$
1,916.2

 
$
1,507.8

 
$
5,471.2

 
$
8,164.8

 
 
 
 
 
 
 
 
 


During the nine months ended September 30, 2012, the Company issued 2,649,236 shares of restricted stock. The following table summarizes the activity for stock options and warrants for the nine months ended September 30, 2012:

 
 
Stock Options
 
Warrants
Outstanding at December 31, 2011
 
17,143,505

 
37,389,825

 
 
 
 
 
Changes during the Year:
 
 
 
 
Granted
 
7,167,029

 
30,400,525

Exercised
 
—

 
(10,160,521
)
Forfeited
 
(1,737,759
)
 
(3
)
Expired
 
(183,133
)
 
(1,315,644
)
Outstanding at September 30, 2012
 
22,389,642

 
56,314,182

 
 
 
 
 


Total compensation cost related to nonvested awards not yet recognized and the weighted-average periods over which the awards are expected to be recognized at September 30, 2012 were as follows (dollars in thousands):

 
 
Stock Options
 
Warrants
 
Restricted Stock
Unrecognized compensation cost
 
$
2,179.9

 
$
94.9

 
$
130.6

Expected weighted-average period in years of compensation cost to be recognized
 
1.84

 
0.39

 
0.14



Common Stock

In March 2012, the Company completed an underwritten offering of 15,000,000 units at a purchase price of $0.40 per unit, with each unit consisting of one share of Common Stock and a five year warrant to purchase one share of Common Stock at an exercise price of $0.51 per share (the “ March 2012 Offering”). The Company sold securities in the March 2012 Offering under the Company’s previously filed shelf registration statement on Form S-3 (333-173855), which was declared effective by the Securities and Exchange Commission on June 13, 2011. The Company received gross proceeds of $6,000,000, prior to deducting underwriting discounts and offering expenses payable by the Company, for net proceeds of approximately $5,297,000. In April 2012, the underwriters in the March 2012 Offering exercised their over-allotment option for an additional 2,000,000 units. The Company received additional gross proceeds of $800,000, prior to deducting underwriting discounts, for net proceeds of approximately $744,000. Additionally in April 2012, the warrants issued in connection with the offering initially exercisable beginning on September 30, 2012, were accelerated and became exercisable immediately.

In the first nine months of 2012, we also issued securities in a number of private placements of common stock or units consisting of common stock and warrants. In the aggregate, we raised gross proceeds of approximately $6.1 million in private placements of an aggregate of approximately 11.8 million shares of Common Stock and 8.3 million five year warrants at exercise prices ranging from $.51 to $.74. The warrants have been classified as equity and will not be subject to remeasurement.
In August 2012, the Company and Aspire Capital Fund, LLC ("Aspire") entered into an amendment to the Common Stock Purchase Agreement dated September 28, 2011, providing for an extension of the 24-month term of the Purchase Agreement until September 30, 2015. Pursuant to the amendment, we agreed to issue to Aspire a five-year warrant to purchase up to 1,612,903 shares of our common stock at an exercise price of $0.60 per share (the closing price of our common stock on the date the amendment was executed).

In the first nine months of 2012, we issued 1,039,339 shares of common stock to the Company's officers and directors pursuant and subject to the terms of the Company's 2009 Equity Compensation Plan, of which 398,115 shares were issued to our officers who elected to receive common stock as compensation in lieu of cash compensation.
Warrant Exercises
 
In July 2012, warrant holders from the March 2012 Offering exercised an aggregate of 3,150,344 warrants at an exercise price of $.51 per share for gross proceeds of approximately $1.6 million.
To raise capital on terms that we deemed favorable, during the three months ended September 30, 2012, the Board authorized certain inducements to warrant holders to exercise outstanding common stock purchase warrants significantly before their expiration dates. The Company determined in each instance that such inducements were modifications of equity instruments, and an incremental fair value of the inducement was determined using the Black-Scholes option pricing model.

In connection with the July 2012 exercise of 2,808,140 of the warrants issued in our May-July 2012 private placement warrants at an exercise price of $0.51 per share for gross proceeds of $1.4 million, we issued to each exercising holder a new five year warrant to purchase the identical number of shares of our Common Stock as had been exercised subject to substantially the same terms as the exercised warrant, except that the per share exercise price of each new warrant is between $.66 and $.69, the closing price of our Common Stock on the date the old warrant was exercised. The incremental fair value of the inducement recorded in the three months ended September 30, 2012 was $0.4 million.

In August 2012, a warrant holder exercised warrants to purchase 2,100,000 shares of the Company' common stock at an exercise price of $0.51 per share, for gross proceeds to the Company of approximately $1.1 million. The warrants were originally issued in 2009 with an exercise price of $2.50 per share. The incremental fair value of the inducement recorded in the three months ended September 30, 2012 was $0.2 million.
In August 2012, a warrant holder exercised warrants to purchase 344,825 shares of common stock at $1.85, and 300,000 shares of common stock at $1.45 per share, respectively, for gross proceeds to the Company of approximately $1.1 million. Since the exercise prices of the warrants were significantly above the Company's stock price, the Company issued the warrant holder 1,458,952 shares of the Company's common stock as an inducement to exercise. The incremental fair value of the inducement recorded in the three months ended September 30, 2012 was $0.4 million.
In September warrant holders exercised an aggregate of 1,457,212 warrants at an exercise price of $.51 per share for gross proceeds of approximately $0.7 million. As an inducement to exercise, we paid certain warrant holders $.03 per share upon each exercise. The incremental fair value of the inducement recorded in the three months ended September 30, 2012 was $0.