Stock-Based Compensation Plans

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

3. Stock-Based Compensation Plans

On April 20, 2007, the stockholders of the Company approved the 2007 Stock Award and Incentive Plan (the “2007 Plan”). The 2007 Plan provides for grants of options, stock appreciation rights, restricted stock, deferred stock, bonus stock and awards in lieu of obligations, dividend equivalents, other stock-based awards and performance awards to executive officers and other employees of the Company, and non-employee directors, consultants and others who provide substantial service to us. The 2007 Plan provides for the issuance of an aggregate 3,275,334 shares as follows: 2,500,000 new shares, 374,264 shares remaining and transferred from the Company’s 2000 Stock Option Plan (the “2000 Plan”) (which was then replaced by the 2007 Plan) and 401,070 shares remaining and transferred from the Company’s Stock Option Plan for Outside Directors (the “Directors Stock Plan”). In addition, shares canceled, expired, forfeited, settled in cash, settled by delivery of fewer shares than the number underlying the award, or otherwise terminated under the 2000 Plan will become available for issuance under the 2007 Plan.

As of September 30, 2011, shares available for future grants under the Plans amounted to 1,367,598.

Total compensation expense recorded during the three months ended September 30, 2011 for share-based payment awards was $0.08 million, of which $0.01 million is included in research and development and $0.07 million is included in general and administrative expenses in the condensed statement of operations for the three months ended September 30, 2011. Total compensation expense recorded during the nine months ended September 30, 2011 for share-based payment awards was $0.22 million, of which $0.04 million is included in research and development and $0.18 million is included in general and administrative expenses in the condensed statement of operations for the nine months ended September 30, 2011. At September 30, 2011, total unrecognized estimated compensation expense related to non-vested stock options granted prior to that date was $0.5 million, which is expected to be recognized over a weighted-average period of approximately two years. Ten thousand options were exercised in the nine months ended September 30, 2011 and no options were exercised in the nine months ended September 30, 2010. No tax benefit was realized due to a continued pattern of operating losses.

During the nine months ended September 30, 2011, the Company granted 309,000 options which included 20,000 options to Gary Riley, 30,000 options to Michael Garone and 40,000 each to Mark Rachesky, Michael Weiser, John Harkey and Timothy Rothwell.