STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2011

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

The Company typically grants options to purchase shares of the Company’s common stock to existing employees and non-employee directors on an annual basis during the first quarter of each year and to new employees and non-employee directors throughout the year on or around the date their employment or service with the Company commences.  All options are granted under the BioSante Pharmaceuticals, Inc. Amended and Restated 2008 Stock Incentive Plan (the 2008 Plan).  During the nine months ended September 30, 2011, the Company granted options under the 2008 Plan to purchase an aggregate of 2,069,250 shares of the Company’s common stock to certain employees of the Company and the Company’s non-employee directors with a weighted average exercise price of $1.90 per share.  Options to purchase an aggregate of 244,788 shares of the Company’s common stock expired and were cancelled during the nine months ended September 30, 2011.  Options to purchase an aggregate of 19,167 shares of the Company’s common stock at a weighted average exercise price of $1.69 per share were exercised during the nine months ended September 30, 2011.  Options are granted at an exercise price equal to the closing price of the Company’s common stock on the date of the grant.  As of September 30, 2011, approximately 2.4 million shares of the Company’s common stock remain available for issuance under the 2008 Plan.

No warrants were granted during the nine months ended September 30, 2011, other than the warrants issued in conjunction with the Company’s March 8, 2011 offering described in Note 9, “Stockholders’ Equity.”  Warrants to purchase an aggregate of 8,750 shares of common stock were exercised during the nine months ended September 30, 2011 for total cash proceeds of $24,063.