Long-Term Incentive Plan and Other Compensatory Awards

12 Months Ended

Dec. 31, 2011

Long-Term Incentive Plan and Other Compensatory Awards

Note 18 — Long-Term Incentive Plan and Other Compensatory Awards

Cytomedix has a shareholder-approved, Long-Term Incentive Plan (“LTIP”) that permits incentive awards of options, stock appreciation rights, restricted stock awards, phantom stock awards, performance unit awards, dividend equivalent awards and other stock-based awards. Cytomedix may issue up to 8,000,000 shares of stock under this LTIP. At December 31, 2011, 1,228,245 shares were available for future grants. Of all options granted through December 31, 2011, 496,200 had been exercised and 6,275,555 remained outstanding. Option terms are set by the Board of Directors for each option grant, and generally vest immediately upon grant or over a period of time ranging up to three years, are exercisable in whole or installments, and expire ten years from the date of grant. Outstanding options expire at various dates through December 1, 2021.

A summary of option activity under the LTIP as of December 31, 2011, and changes during the year then ended is presented below:

LTIP Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2011		5,323,054		$	1.34
Granted		1,000,500		$	0.59
Exercised		0			—
Forfeited or expired		(47,999	)	$	0.61
Outstanding at December 31, 2011		6,275,555		$	1.23		5.2	$	1,765,141
Exercisable at December 31, 2011		5,246,233		$	1.35		4.8	$	1,235,177

The following table summarizes information about stock options outstanding as of December 31, 2011:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number of Outstanding Shares		Weighted Average Remaining Contract Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.30 – $1.50		4,725,555		5.7	$	0.86		3,696,233	$	0.93
$1.51 – $3.00		1,480,000		3.8	$	2.22		1,480,000	$	2.22
$3.01 – $4.50		0		—		—		0		—
$4.51 – $6.00		70,000		4.0	$	5.20		70,000	$	5.20

The weighted-average grant-date fair value of stock options granted under the LTIP during the years 2011 and 2010 was $0.59 and $0.39, respectively. No stock options were exercised under the LTIP during the fiscal years ended December 31, 2011 and 2010.

As of December 31, 2011, there was approximately $418,000 of total unrecognized compensation cost related to non-vested stock options granted under the LTIP. That cost is expected to be recognized over a weighted-average period of 1.4 years. The total fair value of stock options granted under the LTIP that vested during the fiscal years ended December 31, 2011 and 2010 was approximately $433,000 and $378,000, respectively.

Additionally, the Company has issued certain compensatory warrants outside of the LTIP, in exchange for the performance of services. A summary of service provider warrant activity as of December 31, 2011, and changes during the year then ended is presented below:

Warrants to Service Providers	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2011		1,399,632		$	1.65
Granted		0			—
Exercised		0			—
Forfeited or expired		(64,483	)	$	4.34
Outstanding at December 31, 2011		1,335,149		$	1.52		2.6	$	0
Exercisable at December 31, 2011		1,335,149		$	1.52		2.6	$	0

The following table summarizes information about compensatory warrants outstanding as of December 31, 2011:

	Warrants Outstanding						Warrants Exercisable
Range of Exercise Prices	Number of Outstanding Shares		Weighted Average Remaining Contract Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$1.10 – $1.50		950,149		2.6	$	1.37		950,149	$	1.37
$1.51 – $3.00		385,000		2.6	$	1.87		385,000	$	1.87

As of December 31, 2011, there was no remaining unrecognized compensation cost related to warrants.

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

	Year Ended December 31
Stock-Based Expense	2011		2010
Awards under the LTIP	$	305,180	$	410,961
Awards outside the LTIP	$	—	$	—
	$	305,180	$	410,961
Included in Statements of Operations caption as follows:
Salaries and wages	$	155,097	$	277,945
Consulting expense	$	64,006	$	50,693
General and administrative	$	86,077	$	82,323
	$	305,180	$	410,961