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Accounting for Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2012
Accounting for Stock-Based Compensation [Abstract]  
Compensation costs related to stock based awards
The following table summarizes compensation costs related to our stock-based awards (in thousands, except per share data):

   
Three Months Ended
September 30,
  
Nine Months Ended
September 30,
 
   
2012
  
2011
  
2012
  
2011
 
Stock-based compensation in the form of employee stock options and restricted stock awards, included in:
            
              
Cost of revenue
 $19  $20  $56  $60 
Selling, general and administrative
  245   184   721   543 
Research and development
  36   12   96   35 
                  
Total stock-based compensation
  300   216   873   638 
Tax effect on stock-based compensation
  -   -   -   - 
                  
Net effect on net income
 $300  $216  $873  $638 
                  
Effect on net income attributable to AXT, Inc. per common share:
                
Basic
 $(0.01) $(0.01) $(0.03) $(0.02)
Diluted
 $(0.01) $(0.01) $(0.03) $(0.02)
Weighted-average assumptions
There were no stock options granted in the three months ended September 30, 2012 and 2011. There were 104,000 and zero stock options granted with weighted average grant date fair value of $2.84 and none in the nine months ended September 30, 2012 and 2011, respectively. The fair value of our stock options granted to employees for the nine months ended September 30, 2012 was estimated using the following weighted-average assumptions:

 
 
 
 
Nine Months Ended
September 30, 2012
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected term (in years)
 
 
 
 
 
 
 
 
 
 
4.0
 
 
 
 
 
Volatility
 
 
 
 
 
 
 
 
73.74
%
 
 
 
Expected dividend
 
 
 
 
 
 
 
 
 
0.0
%
 
 
 
Risk-free interest rate
 
 
 
 
 
 
 
 
 
0.71
%
 
 
 
Stock option transactions
The following table summarizes the stock option transactions during the nine months ended September 30, 2012 (in thousands, except per share data):

   
Shares
  
Weighted-
average
Exercise
Price
  
Weighted-
 average
Remaining
Contractual
Life
(in years)
  
Aggregate
Intrinsic
Value
 
              
Options outstanding as of January 1, 2012
  2,380  $3.25   6.25  $3,456 
Granted
  104   5.22         
Exercised
  (126 )  2.19         
Canceled and expired
  (30 )  9.69         
Options outstanding as of September 30, 2012
  2,328  $3.31   6.05  $2,151 
Options vested and expected to vest as of September 30, 2012
  2,292  $3.29   6.00  $2,146 
Options exercisable as of September 30, 2012
  1,501  $2.69   4.75  $1,882 
Stock options outstanding and exercisable
The options outstanding and exercisable as of September 30, 2012 were in the following exercise price ranges:

   
Options Outstanding as of September 30, 2012
  
Options Exercisable as of September 30, 2012
 
Range of Exercise Price
  
Shares
  
Weighted-average
Exercise Price
  
Weighted-average
Remaining
Contractual Life
  
Shares
  
Weighted-Average
Exercise Price
 
$1.18 - $1.38   407,001  $1.31   1.73   407,001  $1.31 
$1.40 - $1.40   1,094  $1.40   2.45   1,094  $1.40 
$1.59 - $1.59   328,460  $1.59   6.54   273,967  $1.59 
$1.88 - $1.91   8,000  $1.90   2.00   8,000  $1.90 
$2.04 - $2.04   441,775  $2.04   7.07   313,481  $2.04 
$2.19 - $4.09   175,510  $2.80   2.00   151,510  $2.62 
$4.79 - $4.79   366,500  $4.79   9.08   0  $0.00 
$4.81 - $5.61   144,610  $5.26   7.10   64,610  $4.84 
$5.83 - $5.83   362,450  $5.83   7.84   200,431  $5.83 
$6.31 - $7.82   92,295  $6.65   5.73   81,191  $6.48 
     2,327,695  $3.31   6.05   1,501,285  $2.69 
Restricted stock awards
A summary of activity related to restricted stock awards for the nine months ended September 30, 2012 is presented below:

Stock Awards
 
Shares
  
Weighted-Average
Grant Date Fair Value
 
Non-vested as of January 1, 2012
  223,127  $4.47 
Granted
  30,768  $3.90 
Vested
  (77,812 ) $3.09 
Non-vested as of September 30, 2012
  176,083  $4.98