Stock-based Compensation

6 Months Ended

Jun. 30, 2011

Stock-based Compensation [Abstract]

Stock-based Compensation

Note 9—Stock-based Compensation

Total stock-based compensation expense recognized using the straight-line attribution method in the consolidated statement of operations is as follows:

	Three months ended
	June 30, 2011		June 30, 2010
Stock option compensation expense for employees and directors	$	1,082,503	$	222,011
Restricted stock expense		18,000		18,000
Equity awards for nonemployees issued for services		250,473		33,206
Total stock-based compensation expense	$	1,350,976	$	273,217

	Six months ended
	June 30, 2011		June 30, 2010
Stock option compensation expense for employees and directors	$	2,078,054	$	546,388
Restricted stock expense		36,000		36,000
Equity awards for nonemployees issued for services		288,676		51,597
Total stock-based compensation expense	$	2,402,730	$	633,985

						Weighted-
						average
				Weighted-		remaining
				average		contractual		Aggregate
	Number of			exercise		term (in		intrinsic
	shares			price		years)		value
Outstanding at December 31, 2010		5,677,000		$	0.86		7.46	$	—
Granted		9,058,000		$	0.72
Exercised		(600,000	)	$	0.75
Forfeited		—		$	—
Outstanding at June 30, 2011		14,135,000		$	0.78		8.59	$	1,926,940
Exercisable at June 30, 2011		8,146,553		$	0.79		8.08	$	1,048,873

The total fair value of shares vested during the six months ended June 30, 2011 was $2.1 million. As of June 30, 2011, there was $2.0 million of total unrecognized compensation cost, related to non-vested stock options which vest over time. That cost is expected to be recognized over a weighted-average period of 1.9 years. As of June 30, 2011, there was $0.2 million of total unrecognized compensation expense related to performance-based, non-vested employee and consultant stock options. That cost will be recognized when the performance criteria within the respective performance-based option grants become probable of achievement.

During the three months ended June 30, 2011 and 2010, the weighted average fair market value using the Black-Scholes option-pricing model of the options granted was $0.48 and $0.63, respectively. The fair market value of the options was computed using the Black-Scholes option-pricing model with the following key weighted average assumptions for the three months ended as of the dates indicated:

	June 30, 2011			June 30, 2010
Expected life (years)	5.3 years			3.7 years
Interest rate		2.3	%		1.6	%
Dividend yield		—			—
Volatility		62	%		64	%

There were 600,000 cashless stock options exercised during the second quarter of June 30, 2011, which resulted in the issuance of 246,141 shares of common stock.

Restricted stock

As of June 30, 2011, there was $12,000 of total unrecognized compensation cost related to non-vested restricted stock that is expected to be recognized over a weighted-average period in September of 2011.