Note 8 - Equity Incentive Plans

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

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

Note 8: Equity Incentive Plans

Stock options:

The Company measures and recognizes compensation expense for all stock-based awards at fair value. The financial statements for the three and nine months ended September 30, 2015 and 2014 include compensation cost for the portion of outstanding awards that vested during those periods. The Company recognizes stock-based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term. For the three and nine months ended September 30, 2015 total stock-based compensation expense related to stock options was $1.1 million and $2.7 million, respectively. For the three and nine months ended September 30, 2014 total stock-based compensation expense related to stock options was $0.8 million and $2.6 million, respectively. Stock-based compensation is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

As of September 30, 2015, the Company had outstanding stock options to purchase 2,700,695 shares of common stock at a weighted average exercise price of $12.93.

Restricted stock:

The Company awards restricted common shares to selected employees, and non-employee directors. Recipients are not required to provide any consideration other than continued service. Company share awards are subject to certain restrictions on transfer, and all or part of the shares awarded may be subject to forfeiture upon the occurrence of certain events, including employment termination. The restricted stock is valued at its grant date fair value and expensed over the requisite service period or the vesting term of the awards. For the three and nine months ended September 30, 2015 total stock-based compensation expense related to restricted stock was $0.5 million and $1.5 million, respectively. For the three and nine months ended September 30, 2014 total stock-based compensation expense related to restricted stock was $0.5 million and $1.3 million, respectively. Stock-based compensation is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.

As of September 30, 2015, the Company had 174,869 outstanding restricted common shares.