Stock-based Compensation

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Stock-based Compensation [Abstract]

Stock-based Compensation

Note 12—Stock-based Compensation

Our board of directors adopted the 2009 Equity Incentive Plan (Plan) effective September 3, 2009. The Plan is intended to further align the interests of the Company and its stockholders with its employees, including its officers, non-employee directors, consultants and advisors by providing incentives for such persons to exert maximum efforts for the success of the Company. The Plan currently allows for the issuance of up to 30,000,000 shares of the Company’s common stock. The types of awards that may be granted under the Plan include options (both nonqualified stock options and incentive stock options), stock appreciation rights, stock awards, stock units, and other stock-based awards. The term of each award is determined by the Board at the time each award is granted, provided that the terms of options may not exceed ten years. The Plan had 16,737,750 options available for grant as of September 30, 2012.

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

	Three months ended
	September 30, 2012			September 30, 2011
Stock option compensation expense for employees and directors	$	277		$	225
Restricted stock expense		0			12
Equity awards for nonemployees issued for services		(3	)		0
Total stock-based compensation expense	$	274		$	237
	Nine months ended
	September 30, 2012			September 30, 2011
Stock option compensation expense for employees and directors	$	833		$	2,303
Restricted stock expense		0			48
Equity awards for nonemployees issued for services		24			289
Total stock-based compensation expense	$	857		$	2,640

	Number of shares			Weighted- average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at December 31, 2011		13,608,500		$	0.77		8.4	$	0
Granted		550,000		$	0.41
Exercised		0		$	0
Forfeited		(496,250	)	$	0.61
Outstanding at September 30, 2012		13,662,250		$	0.76		7.5	$	0
Exercisable at September 30, 2012		10,838,157		$	0.66		7.4	$	0

The total fair value of shares vested during the nine months ended September 30, 2012 was $1.0 million. As of September 30, 2012, there was $1.0 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 0.9 years. As of September 30, 2012, there was approximately $0.1 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 nine months ended September 30, 2012 and 2011, the weighted average fair market value using the Black-Scholes option-pricing model of the options granted was $0.23 and $0.34, 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 nine months ended as of the dates indicated:

	September 30, 2012			September 30, 2011
Expected life (years)		6.0 years			6.0 years
Interest rate		2.3	%		2.4	%
Dividend yield		0			0
Volatility		60	%		61	%

Note 14—Equity-based Compensation

Total stock-based compensation expense recognized using the straight-line attribution method in the consolidated statement of operations for the year ended December 31 is as follows:

	2011		2010
Stock option compensation expense for employees and directors	$	2,607,210	$	833,713
Restricted stock expense		48,000		72,000
Equity awards for nonemployees issued for services		244,740		86,828
Total stock-based compensation expense	$	2,899,950	$	992,541

Our board of directors adopted the 2009 Equity Incentive Plan (the “Plan”) effective September 3, 2009. The Plan is intended to further align the interests of the Company and its stockholders with its employees, including its officers, non-employee directors, consultants and advisors by providing incentives for such persons to exert maximum efforts for the success of the Company. The Plan originally allowed for the issuance of up to 4,000,000 shares of the Company’s common stock. In June 2011, the board of directors of the Company amended the 2009 Equity Incentive Plan to increase the number of shares available for issuance under the Plan to 15,000,000 shares of common stock. The types of awards that may be granted under the Plan include options (both nonqualified stock options and incentive stock options), stock appreciation rights, stock awards, stock units, and other stock-based awards. Notwithstanding the foregoing, to the extent the Company is unable to obtain shareholder approval of the Plan within one year of the effective date, any incentive stock options issued pursuant to the Plan shall automatically be considered nonqualified stock options, and to the extent a holder of an incentive stock option exercises his or her incentive stock option prior to such shareholder approval date, such exercised option shall automatically be considered to have been a nonqualified stock option. The term of each award is determined by the Board at the time each award is granted, provided that the terms of options may not exceed ten years.

During the years ended December 31, 2011 and 2010, the weighted average fair market value using the Black-Scholes option-pricing model of the options granted was $0.40 and $0.53, respectively. The fair market value of the stock options at the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions for the year ended December 31:

	2011			2010
Expected life (years)		5.4 years			5.1 years
Interest rate		2.1	%		2.0	%
Dividend yield		—			—
Volatility		62	%		64	%

There were 600,000 cashless stock options exercised during the year ended December 31, 2011, which resulted in the issuance of 246,141 shares of common stock.

	Number of shares			Weighted- average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding at January 1, 2010		2,807,000		$	0.77		7.35	$	1,082,800
Granted		2,870,000			0.95
Exercised		—			—
Forfeited		—			—
Outstanding at December 31, 2010		5,677,000		$	0.86		7.46	$	—
Granted		9,628,000		$	0.72
Exercised		(600,000	)	$	0.75				318,000
Forfeited		(1,096,500	)	$	0.77
Outstanding at December 31, 2011		13,608,500		$	0.77		8.36	$	—
Exercisable at December 31, 2011		8,596,427		$	0.80		8.00	$	—

The following table summarizes the Company’s non-vested stock options:

	Non-vested Options
	Number of Shares			Weighted- Average Fair Value
Non-vested at January 1, 2010		677,000		$	0.36
Granted		2,870,000			0.53
Vested		(1,497,384	)		0.49
Forfeited		—			—
Non-vested at December 31, 2010		2,049,616		$	0.50
Granted		9,628,000			0.72
Vested		(5,569,043	)		0.77
Forfeited		(1,096,500	)		0.76
Non-vested at December 31, 2011		5,012,073		$	0.41

The total fair value of shares vested during the twelve months ended December 31, 2011 was $2.5 million. As of December 31, 2011, there was $1.4 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 1.5 years. As of December 31, 2011, there was less than $0.1 million of total unrecognized compensation expense related to performance-based, non-vested employee stock options. That cost will be recognized when the performance criteria within the respective performance-based option grants become probable of achievement.

Restricted stock

The following table summarizes the Company’s restricted stock activity for the year ended December 31, 2011:

	Non-vested Options
	Number of Shares			Weighted- Average Fair Value
Non-vested at January 1, 2010		300,000		$	0.48
Granted		—			—
Vested		(150,000	)		0.48
Forfeited		—			—
Non-vested at December 31, 2010		150,000		$	0.48
Granted		—			—
Vested		(150,000	)		0.48
Forfeited		—			—
Non-vested at December 31, 2011		—		$	—