Stock Options and Stock-based Employee Compensation

3 Months Ended

Mar. 31, 2013

Stock Options and Stock-based Employee Compensation [Abstract]

Stock Options and Stock-based Employee Compensation

Note 8 – Stock Options and Stock-Based Employee Compensation

We recognize in our financial statements all stock-based awards to employees and non-employee directors based on their fair value on the date of grant, calculated using the Black-Scholes option-pricing model. Compensation expense related to stock-based awards is recognized ratably over the vesting period, which for employees is typically three years.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula that uses weighted-average assumptions noted in the following table.

	March 31,
	2013			2012
Weighted-average expected volatility		110	%		113	%
Weighted-average expected term	4.8 years			4.8 years
Weighted-average risk-free interest rate		0.74	%		0.79	%
Expected dividends		–			–

The total stock-based employee compensation for the three months ended March 31, 2013 and 2012 was as follows:

(in thousands)	Three Months Ended
	March 31,
	2013		2012
Research & Development	$	141	$	120
Selling, General & Administrative		215		278
Total	$	356	$	398