Stockholders' Equity

9 Months Ended

Sep. 30, 2011

Stockholders' Equity: [Abstract]

Stockholders' Equity:

7. Stockholders' Equity:

Incentive Plans:

On July 20, 2011, the Company's Amended and Restated 2001 Incentive Plan, ("2001 Plan") expired and accordingly, the Company adopted a new 2011 Equity Incentive Plan ("2011 Plan") which was approved by the Company's stockholders. On August 24, 2011, the Company filed a Registration Statement on Form S-8 to register:

• an additional 1,821,179 shares of the Common Stock underlying options previously granted under the 2001 Plan, which shares are in addition to 3,500,000 shares underlying options granted under the 2001 Plan, such 3,500,000 shares having been previously registered on a Registration Statement on Form S-8 (No. 333-142590) as filed with the Securities and Exchange Commission on June 8, 2007 and supplemented on June 5, 2009; and

• 4,200,000 shares of Common Stock issuable pursuant to the 2011 Plan, of which 147,500 shares underlying options were granted to certain of the Company's officers and directors under 2011 Plan in July 2011.

Stock-based compensation:

During the nine months ended September 30, 2011, a total of 296,174 options with an aggregate fair market value of approximately $1 million were granted under the 2001 Plan prior to its expiration to Company employees and directors and 147,500 options with an aggregate fair market value of approximately $0.5 million were granted under the 2011 Plan to Company directors. The employee options granted have a term of 10 years from the grant date and vest ratably over a three year period. Director options vest immediately. The fair value of each option is amortized as compensation expense evenly through the vesting period. The fair value of each option award is estimated on the grant date using the Black-Scholes valuation model that uses assumptions for expected volatility, expected dividends, expected term, and the risk-free interest rate. Expected volatilities are based on implied volatilities from historical volatility of the Common Stock, and other factors estimated over the expected term of the options. The expected term of options granted is derived using the "simplified method" which computes expected term as the average of the sum of the vesting term plus contract term. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the period of the expected term. The weighted average for key assumptions used in determining the fair value of options granted during the nine months ended September 30, 2011 follows:

Expected price volatility	69.05%-73.21%
Risk-free interest rate	1.58%-1.99%
Weighted average expected life in years	6 years
Dividend yield	—

Option activity during the nine months ended September 30, 2011 was as follows:

	Number of Shares			Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value
Outstanding at January 1, 2011		4,311,539		$	3.65
Granted
Officers and Directors		204,756
Others		238,918
Exercised		(129,888	)
Forfeitures		(76,937	)
Outstanding at September 30, 2011		4,548,388		$	3.67	$	—

Options outstanding at September 30, 2011 are as follows:

Range of Exercise Prices	Number Exercisable		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
$ 1.00 – 5.00		3,607,143		6.51	$	2.99
$ 5.01 – 10.00		941,245		5.98	$	6.27
		4,548,388					$	—

Options exercisable at September 30, 2011 are as follows:

Range of Exercise Prices	Number Exercisable		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
$ 1.00 – 5.00		2,824,288		5.89	$	2.82
$ 5.01 – 10.00		931,245		5.96	$	6.28
		3,755,533					$	—

The weighted average grant date fair value of options granted during the nine months ended September 30, 2011 was $3.45. There were no options granted during the nine months ended September 30, 2011 whose exercise price was lower than the estimated market price of the stock at the grant date. A summary of the status of the Company's non-vested stock options as of January 1, 2011, and changes during the nine months ended September 30, 2011 is summarized as follows:

Nonvested Shares	Shares			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Nonvested at January 1, 2011		1,036,960
Granted		296,174
Vested		(463,342	)
Forfeited		(76,937	)
Nonvested at September 30, 2011		792,855		$	3.38	$	—

As of September 30, 2011, there was approximately $1.2 million of unrecognized compensation cost related to unvested share-based compensation awards granted. These costs will be expensed ratably over the next two years.

Warrants:

The Company has granted warrants to purchase shares of Common Stock. Warrants may be granted to affiliates in connection with certain agreements. Warrants outstanding at September 30, 2011, all of which are exercisable are as follows:

Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
$ 0.00 – 5.00		4,197,801		1.89	$	3.63
		4,197,801					$	—

Reclassification of derivative liability to equity:

During the nine months ended September 30, 2011, CDC exercised warrants to purchase 601,120 shares of Common Stock for $2.91 per share. At the time of exercise the warrants were treated as a derivative liability. Upon exercise of the warrants, these amounts were reclassified to equity based on the fair value on the date of exercise.