Note 5 - Stockholders' Equity

3 Months Ended

Jun. 30, 2011

Stockholders' Equity Note Disclosure [Text Block]

5.           Stockholders’ Equity

Common Stock Transactions

During the three month and six month periods ended June 30, 2011, we issued 75,734 and 96,987 shares, respectively, of our common stock for financial advisory services and recorded general and administrative expense of $90,000 and $120,000, respectively, related to the issuance.

Stock Options

In 2006, we adopted the GeoVax Labs, Inc. 2006 Equity Incentive Plan (the “2006 Plan”) for the granting of qualified incentive stock options (“ISO’s”), nonqualified stock options, restricted stock awards or restricted stock bonuses to employees, officers, directors, consultants and advisors of the Company.  The exercise price for any option granted may not be less than fair value (110% of fair value for ISO’s granted to certain employees).  Options granted under the 2006 Plan have a maximum ten-year term and generally vest over three years.  The Company has reserved 1,200,000 shares of its common stock for issuance under the 2006 Plan.

	Number of Shares			Weighted Average Exercise Price
Outstanding at December 31, 2010		1,137,356		$	5.33
Granted		-			-
Exercised		-			-
Forfeited or Expired		(37,788	)		4.89
Outstanding at June 30, 2011		1,099,568		$	5.35
Exercisable at June 30, 2011		864,256		$	5.73

Stock-based compensation expense related to the 2006 Plan was $128,271 and $261,606 for the three month and six month periods ended June 30, 2011, as compared to $157,794 and $299,638 for the three month and six month periods ended June 30, 2010, respectively.  The table below shows the allocation of stock-based compensation expense related to our stock option plan between general and administrative expense and research and development expense.  As of June 30, 2011, there was $604,068 of unrecognized compensation expense related to stock-based compensation arrangements subject to the 2006 Plan, which is expected to be recognized over a weighted average period of 1.7 years.

	Three Months Ended June 30,				Six Months Ended June 30,
Expense Allocated to:	2011		2010		2011		2010
General and Administrative Expense	$	77,051	$	106,348	$	156,501	$	196,747
Research and Development Expense		51,220		51,446		105,105		102,891
Total	$	128,271	$	157,794	$	261,606	$	299,638

Compensatory Warrants

We may, from time to time, issue stock purchase warrants to consultants or other service providers in exchange for services.  As of June 30, 2011, there were a total of 64,400 shares of our common stock covered by outstanding stock warrants (57,000 of which are currently exercisable) with a weighted average exercise price of $6.20 per share and a weighted average remaining contractual life of 1 year.

Stock compensation expense related to the issuance of stock purchase warrants in exchange for services was $1,779 and $3,558 for the three month and six month periods ended June 30, 2011, respectively; and $30,267 and $60,534 for the three month and six month periods ended June 30, 2010, respectively, all of which was allocated to general and administrative expense.  As of June 30, 2011, there was $3,561 of unrecognized compensation expense related to compensatory warrant arrangements, which is expected to be recognized over a weighted average period of 0.5 years.

Investment Warrants

In addition to outstanding stock options and compensatory warrants, as of June 30, 2011 we had stock purchase warrants covering a total of 818,376 shares of our common stock which were issued to investors in previous transactions, all of which are currently exercisable.  Such warrants have a weighted-average exercise price of $16.50 per share and a weighted-average remaining contractual life of 1.2 years.