(5) STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

(5) STOCK-BASED COMPENSATION

(5) STOCK-BASED COMPENSATION

The following table summarizes the stock-based compensation expense for all awards (in thousands, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Operating expenses:
Research and development	$	397	$	324	$	1,061	$	473
General and administrative		1,583		427		2,712		624
Total stock-based compensation expense	$	1,980	$	751	$	3,773	$	1,097
Impact on basic and diluted net loss per common share	$	0.01	$	—	$	0.02	$	0.01

The following table summarizes stock option activity for the nine months ended September 30, 2012:

	Shares (in thousands)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Outstanding at January 1, 2012		50,106		$	0.31		9.42
Granted		18,950		$	0.58
Exercised		—
Expired and forfeited		(1,116	)	$	0.83
Outstanding at September 30, 2012		67,940		$	0.37		8.02

Employee Stock Purchase Plan

We adopted an Employee Stock Purchase Plan (Purchase Plan) in 1997. Qualified employees may elect to have a certain percentage of their salary withheld to purchase shares of our common stock under the Purchase Plan. In June 2011, our stockholders authorized an increase in the number of shares reserved for issuance under the Purchase Plan by 500,000, for a total of 1,000,000 shares reserved at September 30, 2012. The purchase price per share is equal to 85% of the fair market value of the stock on specified dates. Sales under the Purchase Plan during the nine months ended September 30, 2012 and 2011 consisted of 58,571 and 49,486 shares at an average price of $0.21 and $0.20, respectively. Shares available for future purchase under the Purchase Plan were 472,605 at September 30, 2012.