Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Assumptions used in the Black-Scholes Option-Pricing Model

The assumptions used in the Black-Scholes option-pricing model for the three and nine months ended September 30, 2012 and 2011 are as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2012	2011	2012	2011
Risk free interest rate	0.7% to 0.9%	1.6%	0.2% to 1.2%	1.6% to 2.6%
Expected term	5.0 to 6.1 years	6.1 years	5.0 to 6.1 years	5.0 to 6.1 years
Expected volatility	80.1% to 81.7%	80.9%	80.1% to 82.8%	72.3% to 89.7%
Expected dividend yield	0.0%	0.0%	0.0%	0.0%

Stock-Based Compensation Expense

The Company recognized stock-based compensation expense as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Cost of sales	$	53	$	42	$	130	$	105
Research and development		256		209		687		540
Selling, general and administrative		1,433		1,066		3,721		2,857
Total	$	1,742	$	1,317	$	4,538	$	3,502