Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

5. Stock-Based Compensation

The Company recognized stock-based compensation expense on all employee and non-employee awards as follows (in thousands):

	Three months ended September 30,				Nine months ended September 30,
	2010		2011		2010		2011
Selling, general and administrative	$	912	$	161	$	3,530	$	547
Research and development	243		40		1,174		233
Total	$	1,155	$	201	$	4,704	$	780

During the nine months ended September 30, 2010, the Company granted 10,750 stock options at an exercise price of $1.00 per share, 2,000 stock options at an exercise price of $0.7625 per share and 1,749,591 shares of restricted stock. During the nine months ended September 30, 2011, the Company did not grant any stock options or shares of restricted stock. No stock-based compensation has been capitalized.

For the nine months ended September 30, 2010, the fair value of stock options was estimated on the date of grant using the Black-Scholes option valuation model with the following assumptions:

	Nine months ended September 30, 2010
Expected volatility	94.1	%
Expected life in years	6.0
Weighted average risk-free interest rate	1.3	%
Expected dividends	0.0	%