Shared-Based Compensation - Note 6

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs

Share-Based Compensation

6. SHARE-BASED COMPENSATION

We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The following table shows the amount of stock-based employee compensation expense included in the consolidated statements of operations:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2012		2011		2012		2011
Cost of contract revenue	$	4,000	$	30,000	$	10,000	$	40,000
Cost of product revenue		-		31,000		20,000		40,000
Research and development expense		87,000		564,000		224,000		739,000
Sales, marketing, general and administrative expense		372,000		697,000		587,000		889,000
Total share-based employee compensation expense	$	463,000	$	1,322,000	$	841,000	$	1,708,000

Options Activity and Positions

The following table summarizes shares, weighted average exercise price, weighted average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of June 30, 2012:

				Weighted
				Average
			Weighted	Remaining
			Average	Contractual		Aggregate
			Exercise	Term		Intrinsic
Options	Shares		Price	(years)		Value
Outstanding as of June 30, 2012	924,000	$	21.68	5.1	$	-
Exercisable as of June 30, 2012	725,000	$	25.16	4.3	$	-

As of June 30, 2012, our unamortized share-based employee compensation was $1.5 million which we plan to amortize over the next 1.5 years and our unamortized nonvested equity share-based employee compensation was $463,000 which we plan to amortize over the next 1.9 years.