Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2012

Methodology for Determining Obligated Amount

With respect to each draw down, Kingsbridge is obligated to purchase (Obligated Amount) the amount determined under one of two methodologies that we choose at our discretion, subject to a maximum of the lesser of 3.5% of the closing market value of the outstanding shares of our common stock at the time of the draw down or $15 million. The methodologies for determining the Obligated Amount are:

Methodology 1 – based on Threshold Price	Obligated Amount
Threshold Price is:
Greater than $90.00 per share	$	7,250,000
Greater than or equal to $75.00 but less than $90.00 per share	$	6,500,000
Greater than or equal to $60.00 but less than $75.00 per share	$	4,250,000
Greater than or equal to $45.00 but less than $60.00 per share	$	3,500,000
Greater than or equal to $30.00 but less than $45.00 per share	$	2,750,000
Greater than or equal to $18.75 but less than $30.00 per share	$	2,000,000
Greater than or equal to $11.25 but less than $18.75 per share	$	1,350,000
Greater than or equal to $7.50 but less than $11.25 per share	$	1,000,000
Greater than or equal to $3.75 but less than $7.50 per share	$	500,000
Greater than or equal to $3.00 but less than $3.75 per share	$	350,000

Methodology 2

Under this method, the Obligated Amount is equal to: 8 (the trading days in the draw down period) multiplied by the adjusted average trading volume of our common stock (calculated as the average daily trading volume of the prior 40 trading days excluding the 5 trading days with the highest trading volume and the 5 trading days with the lowest trading volume) multiplied by the Threshold Price multiplied by 0.1985.

Purchase Price Discount of Shares Sold under 2010 CEFF

The purchase price of shares sold to Kingsbridge under the 2010 CEFF is at a discount to the VWAP (as defined in the agreement) for each of the trading days in the draw down period as follows:

Daily VWAP	% of VWAP			Applicable Discount
Greater than $6.00 per share		95.62	%		4.38	%
Greater than or equal to $5.00 but less than $6.00 per share		95.25	%		4.75	%
Greater than or equal to $4.00 but less than $5.00 per share		94.75	%		5.25	%
Greater than or equal to $3.00 but less than $4.00 per share		94.25	%		5.75	%
Greater than or equal to $2.00 but less than $3.00 per share		94.00	%		6.00	%
Greater than or equal to $1.25 but less than $2.00 per share		92.50	%		7.50	%
Greater than or equal to $0.75 but less than $1.25 per share		91.50	%		8.50	%
Greater than or equal to $0.50 but less than $0.75 per share		90.50	%		9.50	%
Greater than or equal to $0.25 but less than $0.50 per share		85.00	%		15.00	%
Greater than or equal to $0.20 but less than $0.25 per share		82.50	%		17.50	%

Common Stock Issued under 2010 CEFF

Financings that we completed under the 2010 CEFF are as follows:

(in thousands, except per share data)					Discounted
Completion Date	Shares Issued		Gross Proceeds		Average Price Per Share

October 4, 2010		351	$	973	$	2.77
November 4, 2010		166		432		2.60
January 24, 2011		314		991		3.16
October 10, 2011		35		69		1.97
October 24, 2011		37		63		1.71
November 8, 2011		129		218		1.69
		1,032	$	2,746

Common Shares Reserved for Future Issuance, Warrants

The chart below summarizes shares of our common stock reserved for future issuance upon the exercise of warrants:

(in thousands, except price per share data)	December 31,				Exercise		Expiration
	2012		2011		Price		Date

Former Employee Warrant		30		30	$	3.20	3/18/2016
Investor Warrants – February 2011 Financing		4,949		5,000	$	2.80	2/22/2016
Investor Warrants – February 2011 Financing		-		5,000	$	2.94	5/22/2012
PharmaBio – October 2010 Financing		79		79	$	4.10	10/13/2015
Investor Warrants – June 2010 Financing		1,190		1,190	$	6.00	6/22/2015
Kingsbridge – June 2010 CEFF		83		83	$	6.69	12/11/2015
PharmaBio – April 2010 Financing		135		135	$	10.59	4/30/2015
Investor Warrants – February 2010 Financing		917		917	$	12.75	2/23/2015
Investor Warrants – May 2009 Financing		467		467	$	17.25	5/13/2014
Kingsbridge – December 2008 CEFF		45		45	$	22.70	6/12/2014
Kingsbridge – May 2008 CEFF		55		55	$	37.59	11/22/2013
Total		7,950		13,001

Common Shares Reserved for Future Issuance, Share-Based Compensation

Stock options and awards outstanding and available for future issuance as of December 31, 2012 and 2011 are as follows:

	As of December 31,
	2012		2011

2011 Plan(1)
Outstanding		3,365		1,709
Available for Future Grants		2,966		2,106
Total		6,331		3,815

2007 Plan
Outstanding		277		297
Available for Future Grants		–		–
Total		277		297

1998 Plan
Outstanding		355		432
Available for Future Grants		–		–
Total		355		432

Total Outstanding		3,997		2,438
Total Available for Future Grants		2,966		2,106
Total		6,963		4,544

(1) See, Note 11 – Stock Options and Stock-based Employee Compensation – Long-Term Incentive Plans.