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Note 5 - Stockholders' Equity
9 Months Ended
Sep. 30, 2011
Stockholders' Equity Note Disclosure [Text Block]
5.           Stockholders’ Equity

Common Stock Transactions

During the three month and nine month periods ended September 30, 2011, we issued 32,258 and 129,245 shares, respectively, of our common stock for financial advisory services and recorded general and administrative expense of $90,000 and $150,000, respectively, related to the issuance.

Stock Options

In 2006, we adopted the GeoVax Labs, Inc. 2006 Equity Incentive Plan (the “2006 Plan”) for the granting of qualified incentive stock options (“ISO’s”), nonqualified stock options, restricted stock awards or restricted stock bonuses to employees, officers, directors, consultants and advisors of the Company.  The exercise price for any option granted may not be less than fair value (110% of fair value for ISO’s granted to certain employees).  Options granted under the 2006 Plan have a maximum ten-year term and generally vest over three years.  The Company has reserved 1,200,000 shares of its common stock for issuance under the 2006 Plan.

The following table summarizes stock option activity for the nine months ended September 30, 2011:

   
Number of Shares
   
Weighted Average
Exercise Price
 
Outstanding at December 31, 2010
    1,137,356     $ 5.33  
Granted
    -       -  
Exercised
    -       -  
Forfeited or Expired
    (39,288 )     5.39  
Outstanding at September 30, 2011
    1,098,068     $ 5.33  
                 
Exercisable at September 30, 2011
    865,756     $ 5.70  

Stock-based compensation expense related to the 2006 Plan was $102,804 and $364,410 for the three month and nine month periods ended September 30, 2011, as compared to $137,049 and $436,687 for the three month and nine month periods ended September 30, 2010, respectively.  The table below shows the allocation of stock-based compensation expense related to our stock option plan between general and administrative expense and research and development expense.  As of September 30, 2011, there was $501,264 of unrecognized compensation expense related to stock-based compensation arrangements subject to the 2006 Plan, which is expected to be recognized over a weighted average period of 1.5 years.

   
Three Months Ended
September 30,
   
Nine Months Ended
September 30,
 
Expense Allocated to:
 
2011
   
2010
   
2011
   
2010
 
General and Administrative Expense
  $ 65,050     $ 85,705     $ 221,552     $ 282,452  
Research and Development Expense
    37,754       51,344       142,858       154,235  
Total
  $ 102,804     $ 137,049     $ 364,410     $ 436,687  

Compensatory Warrants

We may, from time to time, issue stock purchase warrants to consultants or other service providers in exchange for services.  As of September 30, 2011, there were a total of 64,400 shares of our common stock covered by outstanding stock warrants (57,000 of which are currently exercisable) with a weighted average exercise price of $6.20 per share and a weighted average remaining contractual life of 0.9 years.

Stock compensation expense related to the issuance of stock purchase warrants in exchange for services was $1,779 and $5,337 for the three month and nine month periods ended September 30, 2011, respectively; and $30,267 and $90,801 for the three month and nine month periods ended September 30, 2010, respectively, all of which was allocated to general and administrative expense.  As of September 30, 2011, there was $1,782 of unrecognized compensation expense related to compensatory warrant arrangements, which is expected to be fully recognized during 2011.

Investment Warrants

In addition to outstanding stock options and compensatory warrants, as of September 30, 2011 we had stock purchase warrants covering a total of 818,376 shares of our common stock which were issued to investors in previous transactions, all of which are currently exercisable.  Such warrants have a weighted-average exercise price of $16.50 per share.  In October 2011, the expiration of these warrants was extended to December 31, 2014, resulting in an expense (calculated using the Black-Sholes model) of approximately $152,000 which will be recognized during the fourth quarter of 2011.