Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE 4-STOCK-BASED COMPENSATION

Services performed and other transactions settled in the Company's common stock are recorded at the estimated fair value of the stock issued, if that value is more readily determinable than the fair value of the consideration received.

We have stock compensation plans for employees, directors and consultants which are described in Note 8 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the SEC on April 15, 2011. We recognize the stock-based compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. All of our stock-based compensation is accounted for as an equity instrument.

  A summary of options under the Company's stock option plans from January 1, 2011 through September 30, 2011 is as follows (the number of shares is in thousands):

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Outstanding December 31, 2010		26,778	$	0.56		7.74
Options granted under the plan		500	$	1.10		4.90
Options exercised		(659)	$	0.31		—
Options forfeited and expired		—		—		—
Outstanding March 31, 2011		26,619	$	0.49		7.74
Options granted under the plan		__		___		__
Options exercised		(1,198)		0.26		__
Options forfeited and expired		__		__		__
Outstanding June 30, 2011		25,421	$	0.50		7.25
Options granted under the plan		40		0.42		2.97
Options exercised		(56)	$	0.25		—
Options forfeited and expired		(1,015)		—		—
Outstanding September 30, 2011		24,390	$	.050		6.75

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of our stock exceeded the exercise price of the options at September 30, 2011 for those options for which the quoted market price was in excess of the exercise price ("in-the-money options").  There were 1.5 million options valued at $152,000 in the money at September 30, 2011.

                As of September 30, 2011, total compensation cost of unvested employee and consultant stock options is $ 1.7 million. This cost is expected to be recognized through December 2012. We recorded no income tax benefits for stock-based compensation expense arrangements for the three months ended September 30, 2011, as we have cumulative operating losses, for which a valuation allowance has been established.