SHARE BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2012

SHARE BASED COMPENSATION [Abstract]

Weighted average assumptions used to estimate fair value of share-based awards

We account for share-based compensation under FASB ASC Topic 718, Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, consultants, and directors based on estimated fair values of the award on the grant date.  We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards with the following weighted average assumptions for the three months ended June 30:

	2012		2011
Incentive Stock Options (4)
Expected volatility  (1)		-		-
Risk-free interest rate %  (2)		-		-
Expected term (in years)		-		-
Dividend yield  (3)		-		-
Forfeiture rate		-		-
Nonstatutory Stock Options (5)
Expected volatility  (1)		-		-
Risk-free interest rate %  (2)		-		-
Expected term (in years)		-		-
Dividend yield  (3)		-		-
Forfeiture rate		-		-

(1) Expected volatility assumption was based upon a combination of historical stock price volatility measured on a daily basis and an estimate of expected future stock price volatility

(2) Risk-free interest rate assumption is based upon U.S. Treasury bond interest rates appropriate for the term of the stock options.

(3) The Company does not currently intend to pay cash dividends, thus has assumed a 0% dividend yield.

(4) The Company did not award any incentive stock options for the three months ended June 30, 2012 and 2011, respectively.

(5) The Company did not award any nonstatutory stock options for the three months ended June 30, 2012 and 2011, respectively.

Stock option awards granted

Our Board granted the following incentive stock option awards to executives or employees and nonstatutory stock option awards to directors or non-employees for the three and six months ended June 30:

	Three Months Ended June 30,				Six Months Ended  June 30,
	2012		2011		2012		2011
Incentive Stock Options
Quantity		---		---		---		1,334
Weighted average fair value per share		---		---		---	$	1.15
Fair value		---		---		---	$	1,534
Nonstatutory Stock Options
Quantity		---		---		---		---
Weighted average fair value per share		---		---		---		---
Fair value		---		---		---		---

Allocated share-based compensation expense

The following table summarizes share-based compensation related to stock options for the three and six months ended June 30:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2012		2011		2012		2011
Research and development	$	---	$	13,296	$	6,280	$	26,446
Selling, general and administrative		3,322		21,693		18,993		45,330
Total share-based compensation expense	$	3,322	$	34,989	$	25,273	$	71,776

The following table summarizes share-based compensation related to restricted stock awards for the three months and six months ended June 30:

	Three Months Ended  June 30,				Six Months Ended  June 30,
	2012		2011		2012		2011
Research and development	$	1,611	$	3,701	$	3,205	$	8,720
Selling, general and administrative		1,131		2,623		2,249		6,178
Total share-based compensation expense	$	2,742	$	6,324	$	5,454	$	14,898

Stock option activity

The following table summarizes the stock options outstanding and the number of shares of common stock subject to exercise as of June 30, 2012 and the changes therein during the six months then ended:

	Stock Options			Weighted Average Exercise Price per Share
Outstanding as of December 31, 2011		287,745		$	16.89
Granted		---			---
Forfeited/cancelled		(33,334	)		38.10
Exercised		---			---
Outstanding as of June 30, 2012		254,411		$	14.11

Stock option grants outstanding and exercisable

The following table presents the stock option grants outstanding and exercisable as of June 30, 2012:

Options Outstanding						Options Exercisable
Stock Options Outstanding		Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life in Years		Stock Options Exercisable		Weighted Average Exercise Price per Share
	180,005	$	5.94		6.3		138,532	$	6.97
	37,669		23.73		5.0		37,669		23.73
	25,403		34.57		5.6		25,403		34.57
	11,334		66.04		4.7		11,334		66.04
	254,411	$	14.11		6.0		212,938	$	16.37

Nonvested restricted stock awards

The following table summarizes the non-vested restricted stock awards outstanding and the number of shares of common stock subject to potential issue as of June 30, 2012 and the changes therein during the three months then ended:

	Restricted stock			Weighted Average Grant Date Fair Value
Outstanding as of December 31, 2011		1,096		$	41.47
Shares granted		---			---
Shares forfeited/cancelled		---			---
Shares exercised/issued		(699	)		45.39
Outstanding as of June 30, 2012		397		$	34.59