Stock Options and Stock-Based Employee Compensation

6 Months Ended

Jun. 30, 2014

Stock Options and Stock-Based Employee Compensation [Abstract]

Stock Options and Stock-Based Employee Compensation

Note 8 – Stock Options and Stock-Based Employee Compensation

We recognize in our consolidated financial statements all stock-based awards to employees and non-employee directors based on their fair value on the date of grant, calculated using the Black-Scholes option-pricing model.  Compensation expense related to stock-based awards is recognized ratably over the vesting period, which for employees is typically three years.

The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula based on the following weighted average assumptions:

	June 30,
	2014	2013
Weighted average expected volatility	100%	110%
Weighted average expected term	5.4 years	4.7 years
Weighted average risk-free interest rate	1.6%	0.74%
Expected dividends	–	–

The table below summarizes the total stock-based compensation expense included in the statements of operations for the periods presented:

(in thousands)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Research & Development	$	299	$	200	$	547	$	341
Selling, General & Administrative		482		407		938		622
Total	$	781	$	607	$	1,485	$	963