Stockholders' Equity

3 Months Ended

Mar. 31, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

8. Stockholders' Equity:

Stock-based compensation:

During the three months ended March 31, 2012, a total of 482,361 options with an aggregate fair market value of approximately $0.7 million were granted to Company employees and directors. The options granted have a term of 10 years from the grant date. Of the options granted, 164,008 options vested immediately and the remainder vest ratably over a three year period. 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 three months ended March 31, 2012 follows:

Expected price volatility	83.67%-83.69	%
Risk-free interest rate	0.84	%
Weighted average expected life in years	6 years
Dividend yield	—

Option activity during the three months ended March 31, 2012 was as follows:

	Number of Shares			Weighted Average Exercise Price Per Share		Aggregate Intrinsic Value
Outstanding at January 1, 2012		4,553,251		$	3.66
Granted in 2012:
Officers and Directors		223,674			1.85
Others		258,687			1.83
Exercised		—
Forfeitures		(250,741	)		3.26
Outstanding at March 31, 2012		4,784,871		$	3.50	$	595,436

Options outstanding at March 31, 2012 are as follows:

Range of Exercise Prices	Number Outstanding		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value
$ 1.00 – 5.00		3,873,626		6.44	$	2.84
$ 5.01 – 10.00		911,245		5.41	$	6.30
		4,784,871					$	595,436

Options exercisable at March 31, 2012 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		3,052,965		5.78	$	2.88
$ 5.01 – 10.00		911,245		5.41	$	6.30
		3,964,210					$	388,858

The weighted average grant date fair value of options granted during the three months ended March 31, 2012 was $1.50. There were no options granted during the three months ended March 31, 2012 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, 2012, and changes during the three months ended March 31, 2012 is summarized as follows:

Nonvested Shares	Shares			Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value
Nonvested at January 1, 2012		786,188
Granted		318,353
Vested		(214,296	)
Forfeited		(69,584	)
Nonvested at March 31, 2012		820,661		$	2.72	$	206,578

As of March 31, 2012, 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 three 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 March 31, 2012, 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
$ 0.01 – 5.00		2,291,301		2.70	$	3.80	$	—