Shared-Based Compensation - Note 5

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs

Share-Based Compensation

5. SHARE-BASED COMPENSATION

We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The following table shows the amount of stock-based employee compensation expense included in the consolidated statements of operations:

		Three Months Ended
		March 31,
		2013		2012
Cost of contract revenue	$	4,000	$	6,000
Cost of product revenue		1,000		20,000
Research and development expense		160,000		137,000
Sales, marketing, general and administrative expense		220,000		215,000
Total share-based employee compensation expense	$	385,000	$	378,000

Options Activity and Positions

The following table summarizes shares, weighted average exercise price, weighted average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of March 31,2013:

				Weighted
				Average
			Weighted	Remaining
			Average	Contractual		Aggregate
			Exercise	Term		Intrinsic
Options	Shares		Price	(years)		Value
Outstanding as of March 31, 2013	1,246,000	$	13.47	6.8	$	-
Exercisable as of March 31, 2013	723,000	$	20.33	5.1	$	-

As of March 31, 2013, our unamortized share-based employee compensation was $1.1 million which we plan to amortize over the next 1.5 years and our unamortized nonvested equity share-based employee compensation was $331,000 which we plan to amortize over the next 0.7 years.