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Stock Options and Warrants
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3 Months Ended | ||
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Mar. 31, 2012
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| Stock Options and Warrants |
On February 10, 2012, the Compensation Committee and the Board of Directors awarded options to acquire an aggregate of 45,000 shares of common stock to the Company’s Chief Financial Officer, Mr. Michael Sullivan, under the Company’s Amended and Restated 2002 Stock Option and Incentive Plan (the “Plan”). The award under the Plan was made consistent with the Company’s objective to continue to retain and motivate Company employees. These option awards have an exercise price of $1.20 per share, which was the closing price on the date the options were granted. The options vest as follows: 15,000 vested immediately, 15,000 shares vest on the first anniversary of the date of grant and 15,000 shares vest on the second anniversary of the date of grant. The options are subject to earlier vesting upon a change in control of the Company. On February 10, 2012, the Compensation Committee and the Board of Directors awarded options to acquire an aggregate of 55,000 shares of common stock to two outside consultants, under the Company’s Amended and Restated 2002 Stock Option and Incentive Plan (the “Plan”).
These option awards have an exercise price of $1.20 per share, which was the closing price on the date the options were granted. The options vested immediately. The stock options shall expire and are void unless exercised on or before February 10, 2014. From January 1, 2012 to the date of this filing 70,000 stock options previously granted have vested and 20,000 have been forfeited. In addition, 5,000 restricted shares previously awarded to Mr. Bohunicky, our former chief financial officer were forfeited due to his resignation prior to the vesting of such shares. Stock option compensation expense of $261,403 and $118,929 was recorded for the three months ended March 31, 2012 and 2011, respectively, and is a non-cash expense. This amount is included in research and development and selling, general and administrative expenses in the accompanying statements of operations. As of the date of this filing there are 2,477,313 warrants outstanding and there are 805,173 outstanding stock options that have been granted that have not been forfeited. The total number of outstanding warrants and unexercised stock options is 3,282,486. If all warrants and stock options were exercised, the total number of outstanding shares would be 15,457,281. |