Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation (Tables)

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

A summary of the status of our stock options as of June 30, 2013, and changes during the six-month period then ended, is presented below:


	Six Months Ended June 30, 2013
	Number of Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
Outstanding at beginning of period	3,412,777	$ 2.01
Granted	1,618,225	3.06
Exercised	(60,000)	0.84
Forfeited	(100,350)	2.97
Expired	--	--
Outstanding at end of period	4,870,652	$ 2.34	7.4 years	$ 3,088,590

Exercisable at end of period	2,052,990	$ 1.41	5.0 years	$ 2,899,394

Schedule of Nonvested Restricted Stock Activity

Following a review undertaken by the Company’s Board of Directors and senior management in June 2013, the Company determined that the Board had inadvertently granted stock awards in February 2012 to the Company’s Chief Executive Officer, Mark J. Pykett, in excess of the amount then authorized under the 2002 Plan. Consequently, the Board canceled options to purchase 50,000 shares of the Company’s common stock issued to Dr. Pykett (the amount by which the grants to Dr. Pykett in February 2012 exceeded the 2002 Plan’s share limitation), and Dr. Pykett agreed to the cancellation.

A summary of the status of our unvested restricted stock as of June 30, 2013, and changes during the six-month period then ended, is presented below:

	Six Months Ended June 30, 2013
	Number of Shares	Weighted Average Grant-Date Fair Value
Unvested at beginning of period	1,335,000	$ 2.28
Granted	61,250	2.91
Vested	(745,000)	1.86
Forfeited	--	--
Expired	--	--
Unvested at end of period	651,250	$ 2.82