Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation

v2.4.0.8
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation

For the years ended December 31, 2013, 2012 and 2011, our total stock-based compensation expense was approximately $2.9 million, $2.3 million and $3.6 million, respectively. We have not recorded any income tax benefit related to stock-based compensation for the years ended December 31, 2013, 2012 and 2011.
 
A summary of the status of our stock options as of December 31, 2013, and changes during the year then ended, is presented below:
 
 
Year Ended December 31, 2013
 
Number of
Options
 
Weighted 
Average 
Exercise 
Price
 
Weighted 
Average 
Remaining 
Contractual 
Life
 
Aggregate 
Intrinsic 
Value
Outstanding at beginning of year
3,412,777

 
$
2.01

 
 
 
 

Granted
1,705,725

 
3.04

 
 
 
 

Exercised
(60,000
)
 
0.84

 
 
 
 

Cancelled and forfeited
(111,900
)
 
2.98

 
 
 
 

Expired
(80,000
)
 
0.31

 
 
 
 

Outstanding at end of year
4,866,602

 
$
2.38

 
7.1 years
 
$
1,870,550

 
 
 
 
 
 
 
 
Exercisable at end of year
2,265,581

 
$
1.57

 
5.2 years
 
$
1,858,263



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.
 
The weighted average grant-date fair value of options granted in 2013, 2012, and 2011 was $1.81, $1.86 and $2.22, respectively. During 2013, 60,000 stock options with an aggregate intrinsic value of $126,000 were exercised in exchange for issuance of 39,649 shares of our common stock, resulting in gross proceeds of $39,000. During 2012, 1,232,001 stock options with an aggregate intrinsic value of $3.4 million were exercised in exchange for issuance of 1,225,271 shares of our common stock, resulting in gross proceeds of $752,000. During 2011, 2,697,833 stock options with an aggregate intrinsic value of $9.6 million were exercised in exchange for issuance of 1,832,673 shares of our common stock, resulting in gross proceeds of $225,000. During 2013, 2012 and 2011, we paid tax withholdings related to stock options exercised of $659,000, $9,000, and $2.8 million, respectively. In 2013, 2012, and 2011, the aggregate fair value of stock options vested during the year was $36,000, $460,000 and $998,000, respectively.
 
A summary of the status of our unvested restricted stock as of December 31, 2013, and changes during the year then ended, is presented below:
 
Year Ended
December 31, 2013
 
Number of
Shares
 
Weighted 
Average
Grant-Date
Fair Value
Unvested at beginning of year
1,335,000

 
$
2.28

Granted
73,500

 
2.67

Vested
(745,000
)
 
1.86

Forfeited
(29,250
)
 
4.23

Expired
—

 
—

Unvested at end of year
634,250

 
$
2.73



In February 2013, 100,000 shares of restricted stock with an aggregate fair value of $308,000 vested as scheduled according to the terms of a restricted stock agreement. In March 2013, the Company received FDA approval to market Lymphoseek®. As a result of the Lymphoseek approval, 560,000 shares of restricted stock vested with an aggregate fair value of $1.8 million.

In April 2013, 85,000 shares of restricted stock held by non-employee directors with an aggregate fair value of $224,000 vested as scheduled according to the terms of the restricted stock agreements. In July 2013, 29,250 shares of restricted stock with an aggregate fair value of $83,000 were forfeited as a result of a non-employee director departing from the Board.
 
During 2013, 2012 and 2011, 745,000, 30,000 and 1,050,000 shares, respectively, of restricted stock vested with aggregate vest date fair values of $2.3 million, $85,000 and $4.2 million, respectively.
  
As of December 31, 2013, there was approximately $2.2 million of total unrecognized compensation cost related to stock option and restricted stock awards, which we expect to recognize over remaining weighted average vesting terms of 1.96 years. See Note 1(e).