Stock Option Plan and Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock Option Plan and Stock-Based Compensation [Abstract]

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

11. Stock Option Plan and Stock-Based Compensation

The Company has recognized stock-based compensation expense of approximately $85 thousand and $119 thousand for the three months ended September 30, 2011 and 2010, respectively. The Company has recognized stock-based compensation expense of approximately $306 thousand and $374 thousand for the nine months ended September 30, 2011 and 2010, respectively. The total non-cash, stock-based compensation expense included in the condensed consolidated statements of operations for the periods presented is included in the following expense categories:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2011		2010		2011		2010
Cost of contract research, services and licenses	$	5	$	5	$	19	$	22
Cost of goods sold	17		18		61		56
Administrative and selling	63		96		226		296
Total stock-based compensation	$	85	$	119	$	306	$	374

At September 30, 2011, the Company had outstanding options under two option plans: the 1996 Equity Incentive Plan (the “1996 Plan”) and the 2007 Stock Equity Plan (the “2007 Plan”, together the “Plans”).  Both Plans were approved by stockholders and provided that the Board of Directors may grant options to purchase the Company’s common stock to key employees and directors of the Company.  Incentive and non-qualified options must be granted at least at the fair market value of the common stock or, in the case of certain optionees, at 110% of such fair market value at the time of grant. The options may be exercised, subject to certain vesting requirements, for periods up to ten years from the date of issue.  The 1996 Plan expired with respect to the issuance of new grants as of December 10, 2006.  Accordingly, future grants may be made only under the 2007 Plan.

A summary of options outstanding under the Plans as of September 30, 2011 and changes during the nine month period is as follows:

	Number of Shares		Weighted-Average Exercise Price		Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Options Outstanding at December 31, 2010	760,732		$	6.56
Granted	30,000		$	3.50
Exercised	(2,500	)	$	3.50
Cancelled/expired	(5,125	)	$	3.51
Options Outstanding at September 30, 2011	783,107		$	6.47	6.14	$	—
Options Exercisable at September 30, 2011	627,107		$	6.70	5.64	$	—
Option vested and expected to vest at September 30, 2011	783,107		$	6.47	6.14	$	—

Compensation expense related to stock options to be charged in future periods amounts to approximately $401 thousand at September 30, 2011 and will be recognized over a weighted-average period of 2.08 years.

The per-share weighted-average fair value of stock options granted during the three and nine months ended September 30, 2011 was $1.29 and $2.20, respectively, and $2.50 and $2.56 for the three and nine months ended September 30, 2010, respectively, on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

Year	Expected Dividend Yield	Risk-Free Interest Rate		Expected Option Life	Expected Volatility Factor
2011	—	1.54	%	5.1 years	77.9	%
2010	—	1.47	%	4.2 years	81.3	%

The risk free interest rate reflects treasury yields rates over a term that approximates the expected option life.  The expected option life is calculated based on historical lives of all options issued under the Plans.  The expected volatility factor is determined by measuring the actual stock price volatility over a term equal to the expected life of the options granted.