Stock Option Plan
|6 Months Ended|
Jun. 30, 2011
|Notes to Financial Statements|
|Stock Option Plan||
The Companys Board of Directors has approved the 2008 Stock Plan (the Plan). Under the Plan, the Board of Directors may grant up to 10,742,127 shares of incentive stock options, nonqualified stock options, or stock awards to eligible persons, including employees, nonemployees, members of the Board of Directors, consultants, and other independent advisors who provide services to the Company. In general, options are granted with an exercise price equal to the fair value of the underlying common stock on the date of the grant. Options generally have a contractual life of 10 years and vest over periods ranging from being fully vested as of the grant dates to four years.
A summary of option activity under the Plan is as follows:
Stock-based compensation expense for the three and six month periods ended June 30, 2011 and June 30, 2010, and the period from January 14, 2008 (date of inception) to June 30, 2011, is classified in the statements of operations as follows:
At June 30, 2011, there was a total of $60,837 of unrecognized compensation cost, net of estimated forfeitures, related to non-vested employee stock option awards, which is expected to be recognized over a weighted-average period of approximately 03.5 years.
Also at June 30, 2011, options to purchase 1,863,443 shares granted to nonemployees were unvested and subject to remeasurement at future reporting dates.
The fair value of the Companys stock-based awards during the six months ended June 30, 2011, the year ended December 31, 2010, and the period from January 14, 2008 (date of inception) to June 30, 2011, was estimated using the following weighted-average assumptions: