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Stockholders' Equity
 3 Months Ended
Mar. 31, 2013
Stockholders' Equity

3. Stockholders’ Equity

Preferred Stock

As of March 31, 2013, the Company’s Board of Directors is authorized to issue 8,000,000 shares of preferred stock, with a par value of $0.0001 per share, in one or more series, of which 11,000 are designated Series C-12 Preferred, 22,000 are designated Series C-22 Preferred, 5,134 are designated Series D-12 Preferred, and 10,868 are designated Series D-22 Preferred. As of March 31, 2013, 5,780 shares of Series C-12 Preferred, 500 shares of Series C-22 Preferred and 4,608 shares of Series D-12 Preferred were issued and outstanding.

Warrants

In connection with the Company’s public offering of shares of Common Stock and warrants to purchase shares of Common Stock in May 2008, the Company issued warrants to purchase 390 shares of the Company’s Common Stock. The warrants were immediately exercisable upon grant, have an exercise price of $21,500 per share and remain exercisable for five years. As of March 31, 2013, all of these warrants were outstanding and 390 shares of common stock are reserved for issuance upon exercise of the warrants.

Share-Based Compensation

The Company’s share-based plans permit the grant of stock options (both incentive and nonqualified stock options), restricted stock and restricted stock units to certain employees, directors and consultants.

The following table summarizes share-based compensation expense related to stock options, restricted stock and restricted stock units by expense category (in thousands):

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

2013

2012

 

 

 

Research and development             

$              396             

$              —             

General and administrative             

              3,070             

              —             

 

 

 

Share-based compensation expense included in operating expenses             

$              3,466             

$              —             

 

 

 

As of March 31, 2013 there was approximately $24.3 million of unrecognized stock option share-based compensation expense. This expense is currently expected to be recognized over a weighted average period of approximately 2.8 years. If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate, increase or cancel remaining unearned share-based compensation expense. Future share-based compensation expense and unearned share-based compensation will increase to the extent that we grant additional share-based awards.

A summary of the Company’s stock option activity and related data for the three months ended March 31, 2013 follows:

 

 

 

 

 

Outstanding Options

 

 

 

Number of
Shares

Weighted-Average
Exercise Price

 

 

 

Balance at December 31, 2012             

              592,230,567             

$              0.0655             

Granted             

              —             

              —             

Forfeited/Expired             

              —             

              —             

 

 

 

Balance at March 31, 2013             

              592,230,567             

$              0.0655             

 

 

 

Restricted Stock

The share-based compensation expense during the three months ended March 31, 2013 by expense category was $9,000 for general and administrative expenses and $2,500 for research and development expenses, respectively.

Restricted Stock Units

The share-based compensation expense during the three months ended March 31, 2013 by expense category is $52,000 for general and administrative expenses and $57 for research and development expenses, respectively. The remaining unamortized share-based compensation expense to be recognized over the remaining service period for the RSUs is $597.