Note 8 - Stock Options and Stock-based Employee Compensation

6 Months Ended

Jun. 30, 2017

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

Note

–

Stock Options and Stock-Based Employee Compensation

We recognize in our condensed 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.

A summary of activity under our long-term incentive plans is presented below:

(in thousands, except for weighted-average data) Stock Options	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (In Yrs)

Outstanding at January 1, 2017		1,142		$	14.66
Granted		822			1.23
Forfeited or expired		(53	)		33.52
Outstanding at June 30, 2017		1,911		$	8.36		7.4

Vested and exercisable at June 30, 2017		488		$	26.89		5.4

Vested and expected to vest at June 30, 2017		1,257		$	8.45		8.3

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:

	Six Months Ended June 30,
	2017	2016

Weighted average expected volatility	79%	79%
Weighted average expected term (years)	6.6	5.7
Weighted average risk-free interest rate	2.22	1.4
Expected dividends	-	-

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

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2017		2016		2017		2016

Research and development	$	124	$	140	$	283	$	322
General and administrative		130		110		271		531
Total	$	254	$	250	$	554	$	853