Share-Based Compensation

3 Months Ended

Sep. 30, 2011

Share-Based Compensation

5. Share-Based Compensation

The following table presents the share-based compensation expense recognized during the three months ended September 30, 2011 and 2010:

	Three months
	ended September 30,
	2011		2010
Cost of product sales	$	12,090	$	8,470
Research and development expenses		7,630		5,410
Sales and marketing expenses		2,605		3,847
General and administrative expenses		10,864		6,865
Total share-based compensation	$	33,189	$	24,592

As of September 30, 2011, total unrecognized compensation expense related to stock-based options was $240,410 and the related weighted-average period over which it is expected to be recognized is approximately 1.09 years.

The Company currently provides stock-based compensation under three equity incentive plans approved by the Board of Directors.  Options granted under each of the plans have a ten year maximum term, an exercise price equal to at least the fair market value of the Company’s common stock on the date of the grant, and varying vesting periods as determined by the Board.  For stock options with graded vesting terms, the Company recognizes compensation cost on a straight-line basis over the requisite service period for the entire award.

A summary of stock options within the Company’s share-based compensation plans as of September 30, 2011 is as follows:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
	Number of		Exercise		Contractual		Intrinsic
	Options		Price		Term		Value
Outstanding at September 30, 2011		2,318,706	$	1.83		6.25	$	465,690
Vested and expected to vest at September 30, 2011		2,222,772	$	1.88		6.20	$	424,031
Vested and exercisable at September 30, 2011		1,882,682	$	2.06		5.96	$	364,721

There were no options granted or exercised during the three months ended September 30, 2011 and 2010, respectively.  The Company’s current policy is to issue new shares to satisfy option exercises.