Share-Based Compensation (Notes)

12 Months Ended

Dec. 31, 2014

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

Share-Based Compensation

Share-based Compensation

We utilize share-based compensation in the form of stock options, warrants and restricted stock. The following table summarizes the components of share-based compensation expense for the years ended December 31, 2014 and 2013 ($ in thousands):



	Year Ended December 31,
	2014		2013		2012
Cost of revenues	$	494.2	$	314.0	$	195.0
Research and development	2,058.2		822.2		432.9
Selling, general and administrative	8,657.1		5,702.5		6,084.6
Total share-based compensation expense	$	11,209.5	$	6,838.7	$	6,712.5

Total compensation cost related to nonvested awards not yet recognized and the weighted-average periods over which the awards are expected to be recognized at December 31, 2014 were as follows ($ in thousands):



	Stock Options		Warrants		Restricted Stock
Unrecognized compensation cost	$	4,598.4	$	7.2	$	528.6
Expected weighted-average period in years of compensation cost to be recognized	3.79		0.54		0.31

Total fair value of shares vested and the weighted average estimated fair values of shares grant for the year ended December 31, 2014, 2013, and 2012 were as follows ($ in thousands):



	Stock Options						Warrants
	Year Ended December 31,						Year Ended December 31,
	2014		2013		2012		2014		2013		2012
Total fair value of shares vested	$	5,387.1	$	3,375.7	$	5,408.0	$	9.6	$	129.0	$	171.6
Weighted average estimated fair value of shares granted	4.56		4.29		3.63		—		3.71		4.10

Valuation Assumptions

The fair value of stock options and warrants at the date of grant was estimated using the Black-Scholes option pricing model. The expected volatility is based upon historical volatility of the Company’s stock. The expected term for the options is based upon observation of actual time elapsed between date of grant and exercise of options for all employees. The expected term for the warrants is based upon the contractual term of the warrants.

The range of assumptions made in calculating the fair values of stock options and warrants was as follow:



	Stock Options						Warrants
	Year Ended December 31,						Year Ended December 31,
	2014		2013		2012		2014		2013		2012
Expected term - minimum (in years)	0		1		2		3		2		2
Expected term - maximum (in years)	10		10		10		3		5		5
Expected volatility - minimum	62%		61%		73%		66%		73%		76%
Expected volatility - maximum	77%		79%		84%		66%		79%		83%
Weighted Average volatility	74	%	72	%	83	%	66	%	74	%	82	%
Expected dividend yield	—		—		—		—		—		—
Risk-free interest rate - minimum	0.12%		0.13%		0.28%		0.79%		0.32%		0.27%
Risk-free interest rate - maximum	3.00%		2.67%		1.99%		0.79%		1.73%		0.88%

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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