RESTRICTED STOCK

12 Months Ended

Dec. 31, 2012

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

Note 11. RESTRICTED STOCK

Share-Based Compensation – Restricted Stock

For restricted stock issued and outstanding during the years ended December 31, 2012, 2011 and 2010, the Company incurred non-cash compensation expense of $574,024, $323,463 and $393,249, respectively, each net of estimated forfeitures.

As of December 31, 2012, the Company had outstanding restricted stock grants of 3,160,417 shares with a weighted-average grant-date value of $1.66.  A summary of the status of the Company’s non-vested restricted stock grants as of December 31, 2012, and changes during the year ended December 31, 2012 is presented below:

Non-vested Shares:	Shares			Weighted- Average Grant-Date Fair Value
Non-vested shares at January 1, 2012		1,819,594		$	1.72
Granted		1,314,156		$	1.72
Grants made in prior periods, now becoming restricted		220,000		$	0.92
Vested		(143,333	)	$	2.12
Forfeited		(50,000	)	$	1.84
Non-vested shares at December 31, 2012		3,160,417		$	1.66

Of the 3,160,417 shares of non-vested restricted stock, vesting criteria are as follows:

· 1,679,594 shares of restricted stock vest upon the FDA approval of Symphony or the sale of the Company;

· 220,000 shares of restricted stock vest upon the sale of the Company; and

· 1,260,823 shares of restricted stock vest over 4 years, at each of the anniversary dates of the grants.

As of December 31, 2012, there was approximately $1,861,000 of total unrecognized compensation expense related to non-vested share-based restricted stock arrangements granted under the Company’s equity compensation plans that vest over time in the foreseeable future. As of December 31, 2012, the Company cannot estimate the timing of completion of the performance vesting requirements required by certain of these restricted stock grant arrangements.  Compensation expense related to these restricted share grants will be recognized when the Company concludes that achievement of the performance vesting conditions is probable.