Share-Based Compensation

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, 2015 and 2014 (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Cost of goods sold	$	14.4	$	55.9	$	509.5	$	292.6
Research and development	115.9		515.7		1,642.8		1,364.2
Selling, general and administrative	306.2		2,716.3		6,416.2		7,284.7
Total share-based compensation expense	$	436.5	$	3,287.9	$	8,568.5	$	8,941.5

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, 2015 were as follows (in thousands):



	Stock Options		Warrants		Restricted Stock
Unrecognized compensation cost	$	3,898.6	$	—	$	336.5
Expected weighted-average period in years of compensation cost to be recognized	3.27				2.67

Total fair value of shares vested and the weighted average estimated fair values of shares granted for the nine months ended September 30, 2015 and 2014 were as follows (in thousands):



	Stock Options				Warrants
	Nine Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Total fair value of shares vested	$	5,303.9	$	4,141.6	$	—	$	15.3
Weighted average estimated fair value of shares granted	$	2.10	$	4.67	$	—	$	—

Valuation Assumptions

The fair value of stock options and warrants at the date of grant was estimated using the Black-Scholes option pricing model. The expected volatility is based upon historical volatility of the Company’s stock. The expected term for the options is based upon observation of actual time elapsed between date of grant and exercise of options for all employees. The expected term for the warrants is based upon the contractual term of the warrants.