Stock Incentive Plans

9 Months Ended

Sep. 30, 2014

Stock Incentive Plans [Abstract]

Stock Incentive Plans

Note 4 — Stock Incentive Plans

At September 30, 2014, options to purchase up to 1.3 million shares of our common stock were outstanding.

In September, 2014, shareholders approved the 2014 Long-Term Incentive Plan (the “2014 Plan”), which allows for the granting of up to 5.0 million shares under awards issued under the 2014 Plan. At September 30, 2014, there remained 4.0 million shares available for future awards and grants under the 2014 Plan.

At September 30, 2014, we had an aggregate of 11,913 shares remaining for grant from previous plans.

Stock-based Compensation. Certain option and share awards provide for accelerated vesting if there is a change in control as defined in the applicable plan and certain employment agreements. The following table summarizes stock-based compensation expense:

	Three months ended September 30,				Nine months ended September 30,
(In thousands)	2013		2014		2013		2014
Research and development	$	19	$	15	$	42	$	34
General and administrative		17		131		51		152
Total	$	36	$	146	$	93	$	186

Stock Options — Stock option activity was as follows:

	Options Outstanding
	2014
	Shares			Weighted Average Exercise Price
Outstanding on January 1		284,829		$	39.46
Grants		1,019,000		$	1.07
Forfeitures		(325	)	$	426.83
Outstanding on September 30		1,303,504		$	9.35
Exercisable as of September 30		408,504		$	27.50

The following table summarizes additional information on our stock options outstanding at September 30, 2014:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding		Weighted-Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.01 - $1.07		1,019,000		8.75	$	1.07		124,000	$	1.07
$2.00 - $2.20		154,288		6.92		2.02		154,288		2.02
$11.60 - $50.00		11,175		5.76		22.44		11,175		22.44
$50.01 - $90.80		84,694		4.14		61.40		84,694		61.40
$127.60 - $167.60		28,166		3.71		136.60		28,166		136.60
$207.60 - $588.80		6,181		3.52		241.28		6,181		241.28
Totals		1,303,504		8.07	$	9.35		408,504	$	27.50
Exercisable		408,504		5.44

In September 2014, options to purchase 0.771 million shares at $1.07 were granted to J. Michael French under his revised employment agreement. The options have a ten year term. At the one year anniversary of the grant, 0.257 million options vest, with the remaining 0.514 million options vesting monthly over the subsequent 24 months.

In September 2014, options to purchase 0.043 million shares at $1.07 were granted to each of the four non-employee members of our board of directors as an initial award for board membership. The options have a five year term and 0.086 million options vested immediately upon grant with the remaining 0.086 million options vesting in September 2015.

In September 2014, options to purchase 0.019 million shares at $1.07 were granted to each of the four non-employee members of our board of directors as stock based compensation for the period July 1, 2014 to December 31, 2014. The options have a five year term and 0.038 million options vested immediately upon grant with the remaining 0.038 million options vesting on December 31, 2014.

At September 30, 2014, we had $0.93 million of total unrecognized compensation expense related to unvested stock options. We expect to recognize this cost over a weighted average period of 2.7 years.

At September 30, 2014, the intrinsic value of options outstanding or exercisable was zero as there were no options outstanding with an exercise price less than the per share closing market price of our common stock at that date. No options were exercised during the periods ended September 30, 2013 and 2014.