STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

9. STOCK-BASED COMPENSATION

The Company recognized stock-based compensation expense, related to employee stock option awards, of $863 and $1,122 for the three months ended March 31, 2013 and 2012, respectively.  At March 31, 2013, there was approximately $4,951 of pre-tax stock-based compensation expense, net of estimated forfeitures, related to unvested awards not yet recognized which is expected to be recognized over a weighted average period of 2.20 years.

A summary of option activity for the three months ended March 31, 2013 is as follows:

	Number of		Weighted Average
	Shares		Exercise Price
Outstanding at December 31, 2012	5,579,042		$	6.68
Granted	261,915		1.68
Exercised	(3,175	)	1.65
Forfeited	(42,126	)	3.67
Expired	(58,686	)	5.30
Outstanding at March 31, 2013	5,736,970		6.49
Options exercisable at March 31, 2013	3,186,670		$	9.01
Weighted average grant date fair value of options granted during the three months ended March 31, 2013			$	1.19

For the three months ended March 31, 2013 and 2012, the Company determined the fair value of stock options using the Black-Scholes option pricing model with the following assumptions for option grants, respectively:

	Three Months Ended
	March 31,
	2013	2012
Expected dividend yield	—	—
Risk-free rate	0.92%	0.72% - 1.15%
Expected option term (in years)	5.95	5.36 – 5.47
Volatility	85%	85%-87%