STOCK OPTION PLANS (Tables)

4 Months Ended

Dec. 31, 2012

The Company recorded employee stock-based compensation expense as follows:

	For the four months ended		For the period from September 8, 2005 (inception) to		For the year ended August 31,
	December 31, 2012		December 31, 2012		2012		2011		2010
Research and development	$	453	$	2,045	$	926	$	421	$	96
Selling, general and administrative		1,777		8,022		3,561		1,499		121
Total stock-based compensation expense	$	2,230	$	10,067	$	4,487	$	1,920	$	217

Black-Scholes option-pricing model assumptions

Stock-based compensation expense was based on the Black-Scholes option-pricing model assuming the following:

			Expected
	Risk-free		life of stock	Annual
Period*	interest rate		option	volatility
September 8, 2005 (inception) to August 31, 2006**	5	%	10 years	100	%
Year ended August 31, 2007	4 to 5	%	8 years	100	%
Year ended August 31, 2008	2 to 3.75	%	%8 years	109 to 128	%
Year ended August 31, 2009	1.5 to 3.2	%	7 years	170 to 240	%
Year ended August 31, 2010	2.1 to 3.1	%	6 to 7 years	55 to 245	%
Year ended August 31, 2011	1.6 to 2.4	%	6 years	88 to 116	%
Year ended August 31, 2012	0.68 to 1.2	%	5 to 6 years	121 to 125	%
Four months ended December 31, 2012	0.68 to 0.7	%	5 years	95	%

*	Dividend rate is 0% for all periods presented.

**	Employee stock-based compensation expense was recorded on the consolidated statements of operations commencing on September 1, 2006.

Summary of the activity in stock option plan

A summary of the activity in the 2010 Equity Incentive Plan, the 2006 Equity Compensation Plan, as amended and the Company's other stock option plans, is as follows:

	Option shares			Weighted-average exercise price		Weighted-average fair value of options granted
Outstanding at September 8, 2005		0		$	0	$	0
Granted		580			2.64		2.47
Exercised		0			0		0
Canceled		0			0		0
Outstanding at August 31, 2006		580			2.64		2.47
Granted		107			2.56		2.31
Exercised		(3	)		2.57		2.40
Canceled		0			0		0
Outstanding at August 31, 2007		684			2.63		2.45
Granted		223			2.27		2.21
Exercised		0			0		0
Canceled		0			0		0
Outstanding at August 31, 2008		907			2.54		2.39
Granted		82			1.13		1.04
Exercised		0			0		0
Canceled		0			0		0
Outstanding at August 31, 2009		989			2.42		2.40
Granted		303			2.29		1.24
Assumed in the 2009 Merger		161			114.12		2.63
Exercised		(38	)		1.69		1.49
Canceled		(24	)		142.42		2.00
Outstanding at August 31, 2010		1,391			14.25		1.87
Granted		2,232			3.39		2.54
Exercised		(39	)		2.44		2.02
Canceled		(3	)		1,088.33		0
Outstanding at August 31, 2011		3,581			6.64		2.30
Granted		2,722			5.38		4.62
Exercised		(160	)		2.28		1.72
Canceled		(18	)		119.27		0.02
Outstanding at August 31, 2012		6,125			5.87		3.37
Granted		1,759			5.36		3.84
Exercised		(79	)		2.45		1.79
Canceled		(14	)		6.16		4.49
Outstanding at December 31, 2012		7,791			5.79		3.48

Options outstanding under all of the entity's stock option plans

As of December 31, 2012, the options outstanding under all of the Company's stock option plans consisted of the following (in thousands, except per share data):

		Options outstanding						Options vested and exercisable
Range of exercise prices		Number of options outstanding		Weighted- average remaining contractual life		Weighted- average exercise price		Number of options exercisable		Weighted- average exercise price		Weighted- average remaining contractual life (years)
($)		(#)		(years)		($)		(#)
$	0 to $1.00		9		6.29	$	0.85		7	$	0.85		6.29
$	1.01 to $2.00		79		6.46		1.78		74		1.76		6.41
$	2.01 to $3.00		1,353		5.89		2.66		1,075		2.61		5.42
$	3.01 to $4.00		1,764		7.90		3.50		1,229		3.52		7.84
$	4.01 to $5.00		310		8.90		4.79		87		4.71		6.65
$	5.01 to $6.00		3,884		9.16		5.27		899		5.18		8.83
$	6.01 to $7.00		278		9.17		6.48		66		6.50		9.17
$	7.01 to $8.00		70		9.13		7.75		14		7.75		9.13
$	8.01 to $965.00		44		2.72		249.4		43		249.43		2.72
			7,791		8.23		5.79		3,494		6.80		7.25

Unrecognized compensation cost

At December 31, 2012, the total unrecognized compensation cost was approximately $15.5 million. The weighted-average period over which it is expected to be recognized is 3 years.

		For the four months ended		For the year ended August 31,
(In thousands, except for per share data)		December 31, 2012		2012		2011
Aggregate intrinsic value of options exercised	$	228	$	602	$	131

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

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