Note 8 - Stock Options and Stock-based Employee Compensation

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

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

Note 8  – Stock Options and Stock-Based Employee Compensation

We recognize in our

condensed consolidated 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.

A summary of activity under our long-term incentive plans is presented below:

(in thousands, except for weighted-average data)
Stock Options	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (In Yrs)
Outstanding at December 31, 2015		517		$	51.35
Granted		763			2.09
Forfeited or expired		(138	)		69.15
Outstanding at September 30, 2016		1,142		$	16.30		8.2
Vested and exercisable at September 30, 2016		303		$	49.97		5.2

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula based on the following weighted average assumptions:

	Nine Months Ended
	September 30,
	2016			2015
Weighted average expected volatility		78	%		83	%
Weighted average expected term (years)		5.7			5.6
Weighted average risk-free interest rate		1.4	%		1.5	%
Expected dividends		–			–

The table below summarizes the total stock-based compensation expense included in the statements of operations for the periods presented:

	Three Months Ended				Nine Months Ended
(in thousands)	September 30,				September 30,
	2016		2015		2016		2015
Research and development	$	140	$	192	$	462	$	551
Selling, general and administrative		133		226		664		801
Total	$	273	$	418	$	1,126	$	1,352