Stock based Compensation and Stock Option Plan

3 Months Ended

Mar. 31, 2012

Stock based Compensation and Stock Option Plan [Abstract]

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

Stock-Based Compensation and Stock Option Plan

The Company has recognized stock-based compensation expense of approximately $55 thousand and $106 thousand for the three months ended March 31, 2012 and 2011, 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 March 31,
(in thousands)	2012		2011
Cost of contract research, services	$	4	$	5
Cost of goods sold	15		22
Administrative and selling	36		79
Total stock-based compensation	$	55	$	106

At March 31, 2012, 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 March 31, 2012 and changes during the three 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, 2011	793,107		$	6.40
Granted	—		$	—
Exercised	—		$	—
Cancelled/expired	(42,625	)	$	5.56
Options Outstanding at March 31, 2012	750,482		$	6.45	5.74	$	3,900
Options Exercisable at March 31, 2012	616,107		$	6.66	5.31	$	3,900
Option vested and expected to vest at March 31, 2012	744,033		$	6.65	5.27	$	—

Compensation expense related to stock options to be charged in future periods amounts to approximately $261 thousand at March 31, 2012 and will be recognized over a weighted-average period of 1.69 years.

The per-share weighted-average fair value of stock options granted during the three months ended March 31, 2012 and 2011 was zero and $2.92, 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
2012	—	—	%	—	—	%
2011	—	2.07	%	5.1 years	75.8	%

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.