Stock based Compensation and Stock Option Plan

9 Months Ended

Sep. 30, 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 $48 thousand and $78 thousand for the three months ended September 30, 2012 and 2011, respectively. The Company has recognized stock-based compensation expense of approximately $169 thousand and $284 thousand for the nine months ended September 30, 2012 and 2011, respectively. The total non-cash, stock-based compensation expense included in the unaudited 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)	2012		2011		2012		2011
Cost of contract research, services	$	6	$	5	$	16	$	16
Cost of goods sold	6		17		31		59
Administrative and selling	36		56		122		209
Total stock-based compensation	$	48	$	78	$	169	$	284

At September 30, 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 September 30, 2012 and changes during the nine month period ended September 30, 2012 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	30,000		$	0.83
Exercised	—		$	—
Cancelled/expired	(183,661	)	$	7.25
Options Outstanding at September 30, 2012	639,446		$	6.28	6.02	$	—
Options Exercisable at September 30, 2012	568,196		$	6.44	5.85	$	—
Option vested and expected to vest at September 30, 2012	634,909		$	6.45	5.84	$	—

Compensation expense related to stock options to be charged in future periods amounts to approximately $153 thousand at September 30, 2012 and will be recognized over a weighted-average period of 1.5 years.

The per-share weighted-average fair value of stock options granted during the three and nine months ended September 30, 2012 was $0.55 and $0.83, respectively, and $1.29 and $2.20 for the three and nine months ended September 30, 2011, 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	—	0.62%	5.1 years	92.1%
2011	—	1.54%	5.1 years	77.9%

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.