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Stock-Based Compensation
12 Months Ended
Dec. 31, 2013
Stock-Based Compensation [Abstract]  
Stock-Based Compensation

Note 14 - Stock-Based Compensation

Stock Options

The Company has granted equity awards under several plans, two of which remain active. Under the 2005 Stock Incentive Plan (the "2005 Plan"), equity awards may be granted to officers, directors, employees, consultants and advisors to the Company and any present or future subsidiary. The 2005 Plan, approved in May 2005 and amended most recently in June 2013 by the Company's stockholders, currently authorizes the grant of equity awards for up to 22,312,192 shares of common stock, which included, at the time of approval of the 2005 Plan, a maximum 5,746,468 shares of common stock subject to stock options outstanding under the Company's 1995 Stock Option Plan (the "1995 Plan") that may revert to and become issuable under the 2005 Plan if such options expire or otherwise terminate unexercised. The Company received approval at its 2013 annual meeting of stockholders to increase the number of shares of common stock available for issuance under the 2005 Plan by 4,000,000 shares. The term of the Company's 1995 Plan has expired and no new awards will be made under the 1995 Plan; however, outstanding stock options remain in existence in accordance with their terms.

Under the 2005 Plan and the 1995 Plan, incentive stock options, having a maximum term of 10 years, can be or were granted at no less than 100% of the fair value of the Company's common stock at the time of grant and are generally exercisable over periods ranging from six months to four years. There is no minimum exercise price for non-statutory stock options.

Stock Options Awards

The following is a summary of option activity under the 2005 Plan and the 1995 Plan for the year ended December 31, 2013:

                 
    2005 Stock Incentive Plan   1995 Stock Option Plan
     Stock
Options
  Weighted-Average Exercise Price   Stock Options   Weighted-Average Exercise Price
Outstanding at January 1, 2013     9,143,825     $ 1.87       211,900     $ 4.94  
Granted     4,370,000     $ 2.07       -     $ -  
Exercised     (667,867 )    $ 2.24       -     $ -  
Forfeited     (790,833 )    $ 1.71       -     $ -  
Expired     (267,025 )    $ 4.73       (23,750 )    $ 4.05  
Outstanding at December 31, 2013     11,788,100     $ 1.87       188,150     $ 5.04  
Vested and expected to vest at December 31, 2013     10,667,911     $ 1.85       188,150     $ 5.04  
Shares exercisable at December 31, 2013     4,418,123     $ 1.95       188,150     $ 5.04  
Shares available for grant at December 31, 2013     6,463,969                          

The fair value of the stock options granted for the years ended December 31, 2013, 2012 and 2011, was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

             
    2013   2012   2011
Weighted average fair value of options granted     $1.07       $0.71       $1.14  
Risk-free interest rate     0.54% - 1.36%       0.55% - 1.54%       0.48% - 1.91%  
Dividend yield     0%       0%       0%  
Volatility     51.55% - 73.72%       75.5% - 78.6%       73.3% - 81.0%  
Expected term (in years)     3.91 - 7.05       3.34 - 7.09       3.26 - 4.47  
Expected forfeiture rate     0% - 23.15%       0% - 23.15%       0% - 23.15%  

The aggregate intrinsic value and weighted average remaining contractual term of stock options exercisable as of December 31, 2013 was approximately $14.2 million and 6.0 years, respectively. The aggregate intrinsic value and weighted average remaining contractual term of options vested and expected to vest as of December 31, 2013 was $35.0 million and 7.4 years, respectively. The aggregate intrinsic value represents the total intrinsic value (the difference between the Company's closing stock price on the last trading day of 2013 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2013. This amount is subject to change based on changes to the fair market value of the Company's common stock. The aggregate intrinsic value of options exercised for 2013, 2012 and 2011 was $0.6 million, $0.1 million and $0.3 million, respectively.

Employee Stock Purchase Plan

The Company received approval at its 2013 annual meeting of stockholders to adopt an ESPP, which currently authorizes an aggregate of 2,000,000 shares of Common Stock to be purchased. The ESPP allows employees to purchase shares of Common Stock of the Company at each purchase date through payroll deductions of up to a maximum of 15% of their compensation, at 85% of the lesser of the market price of the shares at the time of purchase or the market price on the beginning date of an option period (or, if later, the date during the option period when the employee was first eligible to participate). The first option period under the ESPP commenced on August 1, 2013.

The ESPP is considered compensatory for financial reporting purposes. As such, the fair value of ESPP shares was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions:

     
    Year Ended December 31, 2013
Weighted-average fair value of ESPP shares granted   $ 0.78  
Risk-free interest rate     0.04 % 
Dividend yield     0 % 
Volatility     50.80 % 
Expected term (in years)     0.5  
Expected forfeiture rate     5 % 

Restricted Stock Awards

Under the 2005 Plan, the Company granted restricted stock awards subject to certain performance-based or time-based vesting conditions which, if not met, would result in forfeiture of the shares and reversal of any previously recognized related stock-based compensation expense.

The following is a summary of restricted stock awards activity for the year ended December 31, 2013:

         
    Number of Shares   Per Share
Weighted-Average
Grant-Date Fair
Value
Outstanding at January 1, 2013     33,334     $ 1.39  
Restricted stock granted     -     $ -  
Restricted stock vested     (16,667 )    $ 1.39  
Restricted stock forfeited     -     $ -  
Outstanding at December 31, 2013     16,667     $ 1.39  

The Company recorded stock-based compensation expense for awards issued under the above mentioned plans in the statements of operations as follows (in thousands):

             
    Years ended December 31,
     2013   2012   2011
Research and development   $ 1,262     $ 873     $ 610  
General and administrative     1,218       1,218       1,437  
Total stock-based compensation expenses   $ 2,480     $ 2,091     $ 2,047  

As of December 31, 2013, there was approximately $4.6 million of total unrecognized compensation expense (net of estimated forfeitures) related to unvested options and restricted stock awards. This unrecognized compensation expense is expected to be recognized over a weighted average period of 1.3 years.