0000786947 2007-12-01 2007-12-31 0000786947 2008-05-01 2008-05-31 0000786947 2008-12-01 2008-12-31 0000786947 2009-12-31 0000786947 acur:VestedRestrictedStockUnitsMember 2009-12-31 0000786947 acur:RsusMember 2009-12-31 0000786947 us-gaap:CommonStockMember 2009-12-31 0000786947 us-gaap:RetainedEarningsMember 2009-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember 2009-12-31 0000786947 acur:StockOptionPlanMember 2009-12-31 0000786947 2010-01-01 2010-12-31 0000786947 acur:VestedRestrictedStockUnitsMember 2010-01-01 2010-12-31 0000786947 acur:RsusMember 2010-01-01 2010-12-31 0000786947 us-gaap:CommonStockMember 2010-01-01 2010-12-31 0000786947 us-gaap:RetainedEarningsMember 2010-01-01 2010-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember 2010-01-01 2010-12-31 0000786947 us-gaap:CommonStockMember acur:CashlessMember 2010-01-01 2010-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember us-gaap:StockOptionsMember 2010-01-01 2010-12-31 0000786947 us-gaap:WarrantMember 2010-01-01 2010-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember us-gaap:RestrictedStockUnitsRSUMember 2010-01-01 2010-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember acur:CashlessMember 2010-01-01 2010-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:StockOptionsMember 2010-01-01 2010-12-31 0000786947 us-gaap:StockOptionsMember 2010-01-01 2010-12-31 0000786947 us-gaap:WarrantMember 2010-01-01 2010-12-31 0000786947 acur:StockOptionPlanMember 2010-01-01 2010-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:RestrictedStockUnitsRSUMember 2010-01-01 2010-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember 2010-01-01 2010-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember 2010-01-01 2010-12-31 0000786947 2010-12-31 0000786947 acur:VestedRestrictedStockUnitsMember 2010-12-31 0000786947 acur:RsusMember 2010-12-31 0000786947 us-gaap:CommonStockMember 2010-12-31 0000786947 us-gaap:RetainedEarningsMember 2010-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember 2010-12-31 0000786947 acur:StockOptionPlanMember 2010-12-31 0000786947 us-gaap:RestrictedStockUnitsRSUMember 2011-01-02 2011-01-31 0000786947 2011-01-01 2011-03-31 0000786947 2011-04-01 2011-06-30 0000786947 2011-06-01 2011-06-30 0000786947 2011-07-01 2011-09-30 0000786947 2011-10-01 2011-12-31 0000786947 2011-01-01 2011-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember us-gaap:StockOptionsMember 2011-01-01 2011-12-31 0000786947 us-gaap:RestrictedStockUnitsRSUMember 2011-01-01 2011-12-31 0000786947 us-gaap:CommonStockMember 2011-01-01 2011-12-31 0000786947 acur:RsusMember 2011-01-01 2011-12-31 0000786947 acur:RestrictedStockUnitMember 2011-01-01 2011-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember acur:OptionNonCashExerciseOneMember 2011-01-01 2011-12-31 0000786947 us-gaap:RetainedEarningsMember 2011-01-01 2011-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:RestrictedStockUnitsRSUMember 2011-01-01 2011-12-31 0000786947 us-gaap:StockOptionsMember 2011-01-01 2011-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember acur:CashlessMember 2011-01-01 2011-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember 2011-01-01 2011-12-31 0000786947 acur:StockOptionPlanMember 2011-01-01 2011-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember 2011-01-01 2011-12-31 0000786947 us-gaap:CommonStockMember us-gaap:RestrictedStockUnitsRSUMember 2011-01-01 2011-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember 2011-01-01 2011-12-31 0000786947 us-gaap:StockOptionsMember 2011-01-01 2011-12-31 0000786947 us-gaap:WarrantMember 2011-01-01 2011-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:StockOptionsMember 2011-01-01 2011-12-31 0000786947 us-gaap:CommonStockMember acur:OptionNonCashExerciseOneMember 2011-01-01 2011-12-31 0000786947 us-gaap:CommonStockMember acur:CashlessMember 2011-01-01 2011-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember us-gaap:RestrictedStockUnitsRSUMember 2011-01-01 2011-12-31 0000786947 us-gaap:StockOptionsMember 2011-01-01 2011-12-31 0000786947 acur:VestedRestrictedStockUnitsMember 2011-01-01 2011-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember us-gaap:RestrictedStockUnitsRSUMember 2011-01-01 2011-12-31 0000786947 2011-12-31 0000786947 acur:VestedRestrictedStockUnitsMember 2011-12-31 0000786947 acur:RsusMember 2011-12-31 0000786947 us-gaap:CommonStockMember 2011-12-31 0000786947 us-gaap:RetainedEarningsMember 2011-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember 2011-12-31 0000786947 acur:StockOptionPlanMember 2011-12-31 0000786947 us-gaap:BuildingAndBuildingImprovementsMember 2011-12-31 0000786947 us-gaap:LandImprovementsMember 2011-12-31 0000786947 us-gaap:MachineryAndEquipmentMember 2011-12-31 0000786947 acur:ScientificEquipmentMember 2011-12-31 0000786947 acur:ComputerHardwareAndSoftwareMember 2011-12-31 0000786947 us-gaap:OfficeEquipmentMember 2011-12-31 0000786947 us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2011-12-31 0000786947 us-gaap:RestrictedStockUnitsRSUMember 2012-01-02 2012-01-31 0000786947 2012-01-01 2012-03-31 0000786947 2012-06-29 0000786947 2012-04-01 2012-06-30 0000786947 2012-07-01 2012-09-30 0000786947 2012-10-01 2012-12-31 0000786947 2012-01-01 2012-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember us-gaap:StockOptionsMember 2012-01-01 2012-12-31 0000786947 acur:PivotalPhaseIiiClinicalStudyMember 2012-01-01 2012-12-31 0000786947 us-gaap:BuildingAndBuildingImprovementsMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000786947 us-gaap:MaximumMember 2012-01-01 2012-12-31 0000786947 us-gaap:CommonStockMember 2012-01-01 2012-12-31 0000786947 acur:RsusMember 2012-01-01 2012-12-31 0000786947 acur:ComputerHardwareAndSoftwareMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000786947 acur:RestrictedStockUnitMember 2012-01-01 2012-12-31 0000786947 us-gaap:RetainedEarningsMember 2012-01-01 2012-12-31 0000786947 us-gaap:LandImprovementsMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:RestrictedStockUnitsRSUMember 2012-01-01 2012-12-31 0000786947 acur:FdasApprovalMember 2012-01-01 2012-12-31 0000786947 acur:FourZeroOneKAndProfitSharingPlanMember 2012-01-01 2012-12-31 0000786947 us-gaap:SubsequentEventMember 2012-01-01 2012-12-31 0000786947 us-gaap:StockOptionsMember 2012-01-01 2012-12-31 0000786947 acur:CaliforniaStateMember 2012-01-01 2012-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember acur:CashlessMember 2012-01-01 2012-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember 2012-01-01 2012-12-31 0000786947 acur:FinancialAdvisorMember 2012-01-01 2012-12-31 0000786947 acur:ComputerHardwareAndSoftwareMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000786947 acur:ScientificEquipmentMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000786947 us-gaap:MinimumMember 2012-01-01 2012-12-31 0000786947 acur:StockOptionPlanMember 2012-01-01 2012-12-31 0000786947 us-gaap:LandImprovementsMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember 2012-01-01 2012-12-31 0000786947 us-gaap:OfficeEquipmentMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000786947 us-gaap:CommonStockMember us-gaap:RestrictedStockUnitsRSUMember 2012-01-01 2012-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember 2012-01-01 2012-12-31 0000786947 us-gaap:BuildingAndBuildingImprovementsMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000786947 us-gaap:MachineryAndEquipmentMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000786947 us-gaap:WarrantMember 2012-01-01 2012-12-31 0000786947 us-gaap:ResearchAndDevelopmentExpenseMember us-gaap:StockOptionsMember 2012-01-01 2012-12-31 0000786947 us-gaap:MachineryAndEquipmentMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000786947 us-gaap:CommonStockMember acur:CashlessMember 2012-01-01 2012-12-31 0000786947 acur:ScientificEquipmentMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000786947 us-gaap:OfficeEquipmentMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000786947 us-gaap:GeneralAndAdministrativeExpenseMember us-gaap:RestrictedStockUnitsRSUMember 2012-01-01 2012-12-31 0000786947 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-01-01 2012-12-31 0000786947 us-gaap:StockOptionsMember 2012-01-01 2012-12-31 0000786947 acur:VestedRestrictedStockUnitsMember 2012-01-01 2012-12-31 0000786947 us-gaap:StockOptionMember 2012-01-01 2012-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember us-gaap:RestrictedStockUnitsRSUMember 2012-01-01 2012-12-31 0000786947 2012-12-31 0000786947 acur:VestedRestrictedStockUnitsMember 2012-12-31 0000786947 acur:RsusMember 2012-12-31 0000786947 us-gaap:CommonStockMember 2012-12-31 0000786947 us-gaap:RetainedEarningsMember 2012-12-31 0000786947 us-gaap:AdditionalPaidInCapitalMember 2012-12-31 0000786947 acur:StockOptionPlanMember 2012-12-31 0000786947 us-gaap:RestrictedStockUnitsRSUMember 2012-12-31 0000786947 us-gaap:BuildingAndBuildingImprovementsMember 2012-12-31 0000786947 us-gaap:LandImprovementsMember 2012-12-31 0000786947 us-gaap:MachineryAndEquipmentMember 2012-12-31 0000786947 acur:ScientificEquipmentMember 2012-12-31 0000786947 acur:ComputerHardwareAndSoftwareMember 2012-12-31 0000786947 us-gaap:OfficeEquipmentMember 2012-12-31 0000786947 us-gaap:PropertyPlantAndEquipmentOtherTypesMember 2012-12-31 0000786947 acur:FinancialAdvisorMember 2012-12-31 0000786947 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2012-12-31 0000786947 acur:PennsylvaniaStateMember 2012-12-31 0000786947 acur:NewJerseyStateMember 2012-12-31 0000786947 acur:CorporateBondsMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel1Member 2012-12-31 0000786947 us-gaap:FairValueInputsLevel2Member 2012-12-31 0000786947 us-gaap:FairValueInputsLevel3Member 2012-12-31 0000786947 us-gaap:SubsequentEventMember 2012-12-31 0000786947 us-gaap:ExchangeTradedFundsMember 2012-12-31 0000786947 acur:PooledInvestmentFundMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel1Member us-gaap:ExchangeTradedFundsMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel1Member acur:PooledInvestmentFundMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel1Member us-gaap:CorporateMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel2Member us-gaap:ExchangeTradedFundsMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel2Member acur:PooledInvestmentFundMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel3Member us-gaap:ExchangeTradedFundsMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel3Member acur:PooledInvestmentFundMember 2012-12-31 0000786947 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateMember 2012-12-31 0000786947 us-gaap:CorporateMember 2012-12-31 0000786947 2013-02-28 xbrli:shares iso4217:USD iso4217:USDxbrli:shares xbrli:pure 10-K false 2012-12-31 2012 FY ACUR ACURA PHARMACEUTICALS, INC 0000786947 --12-31 No Yes No Non-accelerated Filer 46369966 38200000 30174000 24045000 35685000 7476000 0 19946000 0 219000 153000 43000 291000 307000 36129000 27991000 1044000 1052000 0 11000 37173000 29054000 53000 994000 477000 413000 0 12000 530000 1419000 0 5000 530000 1424000 453000 459000 361733000 362422000 -325543000 -335211000 0 -40000 29910000 437000 -323221000 352694000 24341000 439000 -335928000 359830000 36643000 453000 -325543000 361733000 27630000 459000 -335211000 362422000 -40000 37173000 29054000 0.01 0.01 100000000 100000000 45320000 45867000 45320000 45867000 1088000 466000 0 2223000 0 0 0 20000000 0 3311000 233000 20233000 0 0 20466000 0 0 0 0 0 7177000 4037000 3726000 8858000 5895000 6013000 16035000 9932000 9739000 -12724000 -2834000 17362000 -2147000 -1847000 10534000 -2344000 -2189000 -2149000 -3057000 -9739000 42000 32000 79000 14000 34000 8000 28000 -2000 71000 -12696000 10532000 -9668000 11000 147000 0 -12707000 -12707000 -2857000 17029000 -2141000 -1646000 10385000 10385000 -2333000 -2179000 -2140000 -3016000 -9668000 -9668000 -0.27 -0.06 0.36 -0.05 -0.03 0.22 -0.05 -0.05 -0.04 -0.06 -0.20 -0.27 -0.06 0.35 -0.05 -0.03 0.22 -0.05 -0.05 -0.04 -0.06 -0.20 47029000 47496000 47521000 47029000 48007000 47521000 0 0 -40000 0 0 -40000 -40000 -12707000 10385000 -9708000 43728000 43894000 45320000 45867000 2458000 2458000 1733000 1733000 828000 827000 8000 -8000 1000 8000 -7000 -288000 -228000 -296000 -5000 -886000 -948000 -884000 -3000 -2000 -945000 -1033000 -2000 -1031000 0 167000 1102000 611000 7000 31000 217000 2000 -6000 215000 6000 9000 9000 14000 123000 43000 336000 392000 1000 391000 1000 -1000 1076000 3000 1073000 135000 131000 131000 6746000 4365000 684000 1419000 278000 1697000 5049000 2458000 1698000 75000 532000 1926000 457000 228000 1733000 1358000 0 375000 1358000 375000 0 14000 8000 8000 0 0 -219000 231000 126000 0 -141000 110000 -37000 -33000 -16000 0 53000 941000 226000 -209000 -64000 -1088000 -466000 0 0 0 6000 -6480000 12312000 -7038000 0 0 -20306000 0 0 320000 -41000 -131000 -147000 -41000 -131000 -20133000 0 217000 9000 0 5000 1000 392000 1076000 0 0 1839000 1048000 392000 -541000 -1038000 -6129000 11640000 -28209000 0 26000 0 20000 284000 -108000 65000 829000 935000 829000 24000 324000 10000 3000 1300000 7000 31000 288000 228000 296000 5000 948000 886000 1000000 15000 43000 540000 383000 531000 9000 <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 1 - DESCRIPTION OF BUSINESS </b></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Acura Pharmaceuticals, Inc., a New York corporation, and its subsidiary (the &#8220;Company&#8221;, &#8220;We&#8221;, or &#8220;Our&#8221;) is a specialty pharmaceutical company engaged in the research, development and commercialization of technologies and products intended to address medication abuse and misuse. We have discovered and developed two proprietary technologies. Our Aversion&#174; Technology is a mixture of inactive ingredients incorporated into pharmaceutical tablets and capsules intended to address some common methods of product tampering associated with opioid abuse. Pfizer Inc.&#8217;s Oxecta&#174; (oxycodone HCl) tablets, CII is the first approved and marketed product utilizing Aversion and is commercialized under a license agreement we have with a subsidiary of Pfizer, or the Pfizer Agreement. We have also developed our Impede&#8482; Technology which is a combination of inactive ingredients that prevent the extraction of pseudoephedrine from tablets and disrupt the direct conversion of pseudoephedrine from tablets into methamphetamine. In late December 2012 we launched in the United States Nexafed&#174; (pseudoephedrine HC1) tablets formulated with our Impede Technology.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Basis of Presentation </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company&#8217;s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;). The consolidated financial statements include the accounts of </font>its wholly-owned subsidiary, Acura Pharmaceutical Technologies Inc.,<font style="color: black;"> after elimination of intercompany accounts and transactions. </font></p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Use of Estimates</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">Management is required to make certain estimates and assumptions in order to prepare consolidated financial statements in conformity with GAAP. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. </font>Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Cash and Cash Equivalents</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company considers cash and cash equivalents to include cash in banks, U.S. Treasury Bills and money market funds. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. </font>Our cash and cash equivalents are governed by our investment policy as approved by our Board of Directors. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Fair Value of Other Financial Instruments</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company&#8217;s financial instruments consist primarily of cash and cash equivalents, marketable securities, accounts and other receivables, and trade accounts payable. The carrying amounts of these financial instruments, other than marketable securities, are representative of their respective fair values due to their relatively short maturities. As discussed below, marketable securities are recorded at fair value.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Marketable Securities</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company&#8217;s marketable securities primarily consist of corporate bonds and other instruments that invest in U.S. Treasury, U.S. agency securities and agency mortgage-backed securities. </font>Our marketable securities are governed by our investment policy as approved by our Board of Directors. <font style="color: black;">The Company&#8217;s marketable securities are classified as available-for-sale and are recorded at fair value, based upon quoted market prices or net asset value. Unrealized temporary adjustments to fair value are included in a separate component of stockholders&#8217; equity as unrealized gains and losses and reported as a component of accumulated other comprehensive income (loss). No gains or losses on marketable securities are realized until shares are sold or a decline in fair value is determined to be other-than-temporary. If a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.</font></p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Concentration of Credit Risk</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">We invest our excess cash in accordance with the investment policy </font>approved by our Board of Directors <font style="color: black;">that seeks a combination of both liquidity and safety of principal, such as investments in instruments issued by the United States government and high grade corporate bonds. </font></p> <p style="text-align: justify; text-indent: -13.5pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our accounts receivable arise from our product sales of Nexafed&#174; and represents amounts due from wholesalers in the health care and pharmaceuticals industries. The Company has performed a credit evaluation of its customers and may maintain an allowance for potentially uncollectable accounts. We have not experienced any losses on uncollectable accounts due to the recent market launch of Nexafed&#174; late in December 2012.</p> <p style="margin-top: 0pt; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Inventories </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Inventories consist of finished goods held for sale and distribution on our Nexafed&#174; product. Inventories are stated at the lower of cost (first-in, first-out method) or market (net realizable value). The Company writes down inventories to net realizable value based on forecasted demand and market conditions, which may differ from actual results. We had inventory valued at $0.2 million at December 31, 2012. We had no inventory at December 31, 2011. Purchases of active pharmaceutical ingredients and raw materials required for our development and clinical trial manufacture of product candidates utilizing our Aversion&#174; or Impede&#8482; Technologies are expensed as incurred.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: -11.45pt; margin: 0pt 0px 0pt 25.85pt; font: 10pt times new roman, times, serif;"><b><i>Property, Plant and Equipment </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Property, plant and equipment are stated at cost, less accumulated depreciation. We have no leasehold improvements. Betterments are capitalized and maintenance and repairs are charged to operations as incurred. When a depreciable asset is retired from service, the cost and accumulated depreciation is removed from the respective accounts.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Depreciation expense is recorded on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives of the major classification of depreciable assets are:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 60%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; width: 66%; padding-right: 2.35pt;">Building and improvements</td> <td style="padding-left: 2.35pt; width: 34%; padding-right: 2.35pt;">10 - 40 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Land improvements</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">20 - 40 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Machinery and equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 7 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Scientific equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 5 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Computer hardware and software</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 3 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Office equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 5 - 10 years</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Revenue Recognition</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Revenue is generally realized or realizable and earned when there is persuasive evidence an arrangement exists, delivery has occurred or services rendered, the price is fixed and determinable, and collection is reasonably assured. The Company records revenue from its Nexafed product sales when the price is fixed and determinable at the date of sale, title and risk of ownership have been transferred to the customer, and returns can be reasonably estimated.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Nexafed was launched in the fourth quarter of 2012. The Company sells Nexafed in the United States to wholesale pharmaceutical distributors subject to the right of return for a period of up to six months after the product expiration. Nexafed currently has a shelf life of twenty-four months from the date of manufacture. Given the limited sales history of Nexafed, the Company currently cannot reliably estimate expected returns of the product at the time of shipment. Accordingly, the Company defers recognition of revenue on the product shipments of Nexafed until the right of return no longer exists or adequate history and information is available to estimate product returns.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In connection with our License, Development, and Commercialization Agreement dated October 30, 2007 with King Pharmaceuticals Research and Development, Inc., now a subsidiary of Pfizer Inc. (the &#8220;Pfizer Agreement&#8221;), we recognize program fee revenue, collaboration revenue and milestone revenue.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Program fee revenue is derived from amortized upfront payments, such as the $30.0 million upfront payment from Pfizer received in December 2007, and license fees, such as the $3.0 million option exercise fee paid by Pfizer to us in each of May 2008 and December 2008 upon the exercise of its option to license a third and fourth opioid analgesic product candidate under the Pfizer Agreement. We assigned an equal portion of Pfizer&#8217;s $30.0 million upfront payment to each of three product candidates identified in the Pfizer Agreement and recognize the upfront payment as program fee revenue ratably over our estimate of the development period for each identified product candidate. We recognized no program fee revenue in 2012 and $0.5 million and $1.1 million of program fee revenue in 2011 and 2010, respectively.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Collaboration revenue is derived from reimbursement of development expenses, which are invoiced quarterly in arrears, and are recognized when costs are incurred pursuant to the Pfizer Agreement. The research and development services provided to Pfizer under the collaboration are priced at fair value based upon the reimbursement of expenses incurred pursuant to the collaboration with Pfizer. We recognized $2.2 million of collaboration revenue in 2010. There are no ongoing research and development services being provided to Pfizer and we had no collaboration revenue in 2012 or 2011.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Milestone revenue is contingent upon the achievement of certain pre-defined events in the development of Oxecta Tablets and other product candidates licensed to Pfizer under the Pfizer Agreement. <font style="color: black;">Milestone payments from Pfizer are recognized as revenue upon achievement of the &#8220;at risk&#8221; milestone events, which represent the culmination of the earnings process related to that milestone. Milestone payments are triggered either by the results of our research and development efforts or by events external to us, such as regulatory approval to market a product. As such, the milestones are substantially at risk at the inception of the Pfizer Agreement, and the amounts of the payments assigned thereto are commensurate with the milestone achieved. In addition, upon the achievement of a milestone event, we have no future performance obligations related to that milestone payment. Each milestone payment is non-refundable and non-creditable when made. In June 2011, Pfizer paid us a $20.0 million milestone relating to the receipt of FDA approval of the NDA for Oxecta.</font></p> <p style="text-align: justify; margin: 0pt 0px 0pt 13.5pt; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px 0pt 13.5pt; font: 10pt times new roman, times, serif;"><b><i>Shipping and Handling Costs</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company records shipping and handling costs in selling expenses. The amounts recorded from the launch of </font>Nexafed in the fourth quarter of 2012 were not material.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Research and Development Activities</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Research and Development (&#8220;R&amp;D&#8221;) expenses include internal R&amp;D activities, external Contract Research Organization (&#8220;CRO&#8221;) services and their clinical research sites, and other activities. Internal R&amp;D activity expenses include facility overhead, equipment and facility maintenance and repairs, laboratory supplies, pre-clinical laboratory experiments, depreciation, salaries, benefits, and share-based compensation expenses. CRO activity expenses include preclinical laboratory experiments and clinical trial studies. Other activity expenses include regulatory consulting, and regulatory legal counsel. Internal R&amp;D activities and other activity expenses are charged to operations as incurred. We make payments to the CRO's based on agreed upon terms and may include payments in advance of a study starting date. We review and accrue CRO expenses and clinical trial study expenses based on services performed and rely on estimates of those costs applicable to the stage of completion of a study as provided by the CRO. Accrued CRO costs are subject to revisions as such studies progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. We had no accrued CRO costs at December 31, 2012 and had accrued<b> </b>$28 thousand of CRO and clinical trial study expenses at December 31, 2011.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Income Taxes </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We account for income taxes under the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and the income tax basis of assets and liabilities and are measured using the enacted income tax rates and laws that will be in effect when the differences are expected to reverse. Additionally, net operating loss and tax credit carryforwards are reported as deferred income tax assets. The realization of deferred income tax assets is dependent upon future earnings. A valuation allowance is required against deferred income tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred income tax assets may not be realized. At both December 31, 2012 and 2011, 100% of all remaining net deferred income tax assets were offset by a valuation allowance due to uncertainties with respect to future utilization of net operating loss carryforwards. If in the future it is determined that additional amounts of our deferred income tax assets would likely be realized, the valuation allowance would be reduced in the period in which such determination is made and an additional benefit from income taxes in such period would be recognized.</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Comprehensive Income (Loss)</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company&#8217;s stockholders. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that, under GAAP, are included in comprehensive income (loss), but excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders&#8217; equity. Acura&#8217;s other comprehensive income (loss) is composed of unrealized gains (losses) on certain holdings of marketable securities, net of any realized gains (losses) included in net income (loss).</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Earnings Per Share (&#8220;EPS&#8221;)</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Basic EPS is computed by dividing net income or loss by the weighted average common shares outstanding during a period, including shares weighted related to vested RSUs (See Note 9). Diluted EPS is based on the treasury stock method and computed based on the same number of shares used in the basic share calculation and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options and stock warrants, assuming the exercise of all in-the-money stock options and warrants. Common stock equivalents are excluded from the computation where their inclusion would be anti-dilutive. No such adjustments were made for either 2012 or 2010 as the Company reported a net loss for the years and including the effects of common stock equivalents in the diluted EPS calculation would have been antidilutive. In 2011, stock awards to purchase 2.8 million common shares were outstanding but not included in the computation of diluted EPS as the awards were anti-dilutive.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">A reconciliation of the numerators and denominators of basic and diluted EPS consisted of the following:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">Years ended December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands except per share data)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">EPS - basic</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; width: 58%; padding-right: 0px; font-size: 10pt;">Numerator: net income (loss)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(9,668</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">10,385</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(12,707</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Denominator:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common shares</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,863</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,016</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">43,842</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Vested RSUs</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,658</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,480</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,187</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Basic weighted average shares outstanding</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,521</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,496</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">EPS - basic</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.22</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">EPS &#8211; assuming dilution</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Numerator: net income (loss)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(9,668</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">10,385</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(12,707</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Denominator:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common shares</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,863</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,016</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">43,842</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Vested RSUs</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,658</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,489</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,187</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock options</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">366</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common stock warrants</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">136</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Diluted weighted average shares outstanding</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,521</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">48,007</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">EPS - diluted</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.22</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Excluded dilutive securities:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Common stock issuable:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock options</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,296</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,805</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,243</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common stock warrants</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,856</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,193</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSUs</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">49</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Total excluded potentially dilutive shares</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">5,152</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,805</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">6,485</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Share-based Compensation </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We have three share-based compensation plans covering stock options and Restricted Stock Units (&#8220;RSU&#8221;) for our employees and directors, which are described more fully in Note 9.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We measure our compensation cost related to share-based payment transactions based on fair value of the equity or liability instrument issued. For purposes of estimating the fair value of each stock option unit on the date of grant, we utilize the Black-Scholes option-pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected volatility factor of the market price of our common stock (as determined by reviewing our historical public market closing prices). Our accounting for share-based compensation for RSUs is based on the fair-value method. The fair value of the RSUs is the market price of our common stock on the date of grant, less its exercise cost.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">Our share-based compensation expense recognized in the Company&#8217;s results of operations comprised the following:</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">Year Ended December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Research and development:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; width: 58%; padding-right: 0px; font-size: 10pt;">Stock option awards</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">375</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">457</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">1,419</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSU awards</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">75</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">278</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">375</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">532</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,697</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Selling, general and administrative:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock option awards</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,358</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,698</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,365</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSU awards</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">228</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">684</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,358</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,926</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">5,049</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,733</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,458</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">6,746</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Recent Accounting Pronouncements</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In June 2011, the FASB issued a final standard requiring entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. The new standard eliminates the option to present items of other comprehensive income in the statement of changes in equity. The new requirements do not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. Also, earnings per share computations do not change. The new requirements are effective for interim and annual periods beginning after December 15, 2011, with early adoption permitted. Full retrospective application is required. The Company adopted this standard for the annual period ended December 31, 2011 but because we had no other comprehensive income, there was no change in our financial statement presentations. During 2012 we had other comprehensive income and had applied retroactive application to the annual periods ended December 31, 2011 and 2010. The Company elected to present net income and other comprehensive income in a single continuous statement of net income and other comprehensive income. As this standard related only to the presentation of other comprehensive income, the adoption of this accounting standard did not have an impact on the Company&#8217;s consolidated financial statements.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 3 &#8211; LICENSE, DEVELOPMENT, AND COMMERCIALIZATION AGREEMENT</b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On October 30, 2007, we and King Pharmaceuticals Research and Development, Inc., now a wholly-owned subsidiary of Pfizer, entered into the Pfizer Agreement to develop and commercialize in the United States, Canada and Mexico certain opioid analgesic products utilizing our proprietary Aversion Technology. The Pfizer Agreement initially provided Pfizer with an exclusive license in the United States, Canada and Mexico, or the Pfizer Territory, for Oxecta (oxycodone HCl) Tablets and oxycodone HCl/acetaminophen tablets utilizing Aversion Technology. In addition, the Pfizer Agreement provided Pfizer with an option to license in the Pfizer Territory certain future opioid analgesic products developed utilizing Aversion Technology. Pfizer exercised its option to license two additional product candidates including an undisclosed immediate-release opioid analgesic tablet product and hydrocodone bitartrate/acetaminophen tablets, each of which utilize our Aversion Technology. On September 24, 2012, we entered into a letter agreement with Pfizer which amends the Pfizer Agreement and provides for the termination of Pfizer&#8217;s license to our Aversion&#174; Technology used in the three development-stage products licensed to Pfizer and for the transfer of these products back to us. These development-stage products are hydrocodone bitartrate/acetaminophen tablets, oxycodone HCl/acetaminophen tablets and an undisclosed opioid.</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Pursuant to the Pfizer Agreement, we and Pfizer formed a joint steering committee to oversee development and commercialization strategies for Oxecta. Pfizer is responsible, at its own expense, for all regulatory, manufacturing and commercialization activities for Oxecta in all Pfizer Territories. Subject to the Pfizer Agreement, Pfizer will have final decision making authority with respect to all regulatory and commercialization activities for Oxecta.</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">As of December 31, 2012, we had received aggregate payments of $78.5 million<b> </b>from Pfizer, consisting of a $30.0 million non-refundable upfront cash payment, $17.5 million in reimbursed research and development expenses relating to licensed products, $6.0 million in fees relating to Pfizer&#8217;s exercise of its option to license an undisclosed immediate-release opioid analgesic tablet product and hydrocodone bitartrate/acetaminophen tablets, a $5.0 million milestone fee relating to our successful achievement of the primary endpoints for our pivotal Phase III clinical study for Aversion oxycodone HCl with niacin tablets and a $20.0 million milestone fee relating to the FDA&#8217;s approval of the Oxecta Tablets NDA. We received none of these payments from Pfizer during 2012. We can also receive a one-time $50 million sales milestone payment upon the first attainment of $750 million in net sales of Oxecta across all Pfizer Territories. In addition, for Oxecta sales occurring on and following February 2, 2013 (the one year anniversary of the first commercial sale of Oxecta), Pfizer will pay us a royalty at one of six rates ranging from 5% to 25% based on the level of annual net sales for Oxecta across all Pfizer Territories, with the highest applicable royalty rate applied to such annual sales.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Pfizer&#8217;s royalty payment obligations for Oxecta expire on a country-by-country basis upon the later of (i) the expiration of the last valid patent claim covering Oxecta in such country, or (ii) 15 years from the first commercial sale of Oxecta in such country. No minimum annual fees are payable by either party under the Pfizer Agreement. If Pfizer, after consultation with us, enters into a license agreement with a third party to avoid or settle such third party&#8217;s allegations or claims regarding freedom to operate against Oxecta, Pfizer may deduct 50% of any royalties or other license payments it pays to such third party under such license, provided that the royalties payable to us are no less than 80% of the royalties otherwise due to us under the Pfizer Agreement.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Pfizer Agreement expires upon the expiration of Pfizer&#8217;s royalty payment and other payment obligations under the Pfizer Agreement. Pfizer may terminate the Pfizer Agreement in its entirety at any time by written notice to us. We may terminate the Pfizer Agreement in its entirety if Pfizer commences any interference or opposition proceeding challenging the validity or enforceability of any of our patent rights licensed to Pfizer under the Pfizer Agreement. Either party has the right to terminate the Pfizer Agreement on a country-by-country basis if the other party is in material breach of its obligations under the Pfizer Agreement relating to such country, and to terminate the Agreement in its entirety in the event the other party makes an assignment for the benefit of creditors, files a petition in bankruptcy or otherwise seeks relief under applicable bankruptcy laws, in each case subject to applicable cure periods.</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In the event of termination, no payments are due except those royalties and milestones that have accrued prior to termination under the Pfizer Agreement and all licenses under the Pfizer Agreement are terminated. For all Acura terminations and termination by Pfizer where we are not in breach, the Pfizer Agreement provides for the transition of development and marketing of the licensed products from Pfizer to us, including the conveyance by Pfizer to us of the trademarks and all regulatory filings and approvals solely used in connection with the commercialization of such licensed products and, in certain cases, for Pfizer&#8217;s supply of such licensed products for a transitional period at Pfizer&#8217;s cost plus a mark-up.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Paragraph IV ANDA Litigation</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On or about September 17, 2012, we believe the FDA internally changed the status of Oxecta to be considered a Reference Listed Drug, or RLD. An RLD is the standard to which all generic versions must be shown to be bioequivalent and a drug company seeking approval to market a generic equivalent must refer to the RLD. By designating Oxecta as an RLD, the FDA was allowed to accept ANDAs referencing Oxecta.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On September 20, 2012, we announced that we had received a Paragraph IV Certification Notice under 21 U.S.C. 355(j) (a Paragraph IV Notice) from a generic sponsor of an ANDA for a generic drug listing Oxecta as the reference listed drug. Since such date, we have received similar Paragraph IV Notices from three other generic pharmaceutical companies that have filed ANDAs listing Oxecta as the reference drug. The Paragraph IV Notices refer to our U.S. Patent Numbers 7,201,920, 7,510,726 and 7,981,439, which cover our Aversion Technology and Oxecta. The Paragraph IV Notices state that each generic sponsor believes that such patents are invalid, unenforceable or not infringed. Pfizer has advised us that they will not exercise their first right under the Pfizer Agreement to control the enforcement of our patents licensed to Pfizer for Oxecta against these generic sponsors. As a result, on October 31, 2012, we initiated suit against each of Watson Laboratories, Inc. &#8211; Florida (&#8220;Watson&#8221;), Par Pharmaceutical, Inc., Impax Laboratories, Inc. and Sandoz Inc. in the United States District Court for the District of Delaware alleging infringement of our U.S. Patent No. 7,510,726 listed in the FDA&#8217;s Orange Book. The commencement of such litigation prohibits the FDA from granting approval of the filed ANDAs until the earliest of 30 months from the date the FDA accepted the application for filing, or the conclusion of litigation.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On January 2, 2013, our motion to dismiss the suit against Watson on the grounds that Watson had amended its ANDA from a Paragraph IV certification to Paragraph III, which indicated its intent not to market its product in advance of our patents expiring, was accepted by the Court.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Litigation is inherently uncertain and we cannot predict the outcome of these infringement actions. If any of these generic companies prevails in its respective lawsuit and is able to obtain FDA approval of its product, it may be able to launch its generic version of Oxecta prior to the expiration of our patents in 2025. Additionally, it is possible that other generic manufacturers may also seek to launch a generic version of Oxecta and challenge our patents. Any determination in these infringement actions that our patents covering our Aversion Technology and Oxecta are invalid or unenforceable, in whole or in part, or that the products covered by generic sponsors&#8217; ANDAs do not infringe our patents could materially adversely affect the Company&#8217;s operations and financial condition.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 4 &#8211; PROPERTY, PLANT AND EQUIPMENT </b></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif; text-indent: 0.2in;">Property, plant and equipment are summarized as follows:</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif; text-indent: 0.2in;">&#160;</p> <table align="center" style="font: 10pt times new roman, times, serif; width: 70%; border-collapse: collapse;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; text-align: center;" colspan="6">December 31,</td> <td style="font-size: 10pt; text-align: center;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: center;" colspan="2">2012</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: center;" colspan="2">2011</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: center;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: center;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: center;" colspan="6">(in thousands)</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: center;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #ccffcc;"> <td style="padding-left: 5.05pt; font-size: 10pt; width: 68%; text-indent: -5.05pt; text-align: left;">Building and improvements</td> <td style="font-size: 10pt; width: 2%;">&#160;</td> <td style="font-size: 10pt; width: 1%; text-align: left;">$</td> <td style="font-size: 10pt; width: 12%; text-align: right;">1,259</td> <td style="font-size: 10pt; width: 1%; text-align: left;">&#160;</td> <td style="font-size: 10pt; width: 2%;">&#160;</td> <td style="font-size: 10pt; width: 1%; text-align: left;">$</td> <td style="font-size: 10pt; width: 12%; text-align: right;">1,252</td> <td style="font-size: 10pt; width: 1%; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-left: 5.05pt; font-size: 10pt; text-indent: -5.05pt; text-align: left;">Scientific equipment</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">595</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">583</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #ccffcc;"> <td style="padding-left: 5.05pt; font-size: 10pt; text-indent: -5.05pt; text-align: left;">Computer hardware and software</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">255</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">270</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-left: 5.05pt; font-size: 10pt; text-indent: -5.05pt; text-align: left;">Machinery and equipment</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">229</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">117</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #ccffcc;"> <td style="padding-left: 5.05pt; font-size: 10pt; text-indent: -5.05pt; text-align: left;">Land and improvements</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">162</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">162</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-left: 5.05pt; font-size: 10pt; text-indent: -5.05pt; text-align: left;">Other personal property</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">70</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">70</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #ccffcc;"> <td style="padding-left: 5.05pt; font-size: 10pt; padding-bottom: 1pt; text-indent: -5.05pt; text-align: left;">Office equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: right;">27</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; padding-bottom: 1pt;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: right;">27</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-left: 2.35pt; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">2,597</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; text-align: right;">2,481</td> <td style="font-size: 10pt; text-align: left;">&#160;</td> </tr> <tr style="vertical-align: bottom; background-color: #ccffcc;"> <td style="padding-left: 5.05pt; font-size: 10pt; padding-bottom: 1pt; text-indent: -5.05pt; text-align: left;">Less accumulated depreciation and amortization</td> <td style="font-size: 10pt; padding-bottom: 1pt;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: right;">(1,545</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left;">)</td> <td style="font-size: 10pt; padding-bottom: 1pt;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: left;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: right;">(1,437</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left;">)</td> </tr> <tr style="vertical-align: bottom; background-color: white;"> <td style="padding-left: 2.35pt; font-size: 10pt; padding-bottom: 1pt; text-align: left;">Total property, plant and equipment, net</td> <td style="font-size: 10pt; padding-bottom: 1pt;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: left;">$</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: right;">1,052</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left;">&#160;</td> <td style="font-size: 10pt; padding-bottom: 1pt;">&#160;</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: left;">$</td> <td style="font-size: 10pt; border-bottom: black 1pt solid; text-align: right;">1,044</td> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif; text-align: justify;">Depreciation and amortization expense was approximately $0.1 million for each of the years ended December 31, 2012, 2011, and 2010.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 5 &#8211; ACCRUED EXPENSES </b></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-indent: 0.2in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Accrued expenses are summarized as follows:</p> <p style="text-indent: 0.2in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 70%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="6">December 31,</td> <td style="text-align: center; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6">(in thousands)</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; width: 68%; font-size: 10pt;">Professional services</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">216</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">191</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Other fees and services</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">75</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">42</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Payroll, payroll taxes and benefits</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">55</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">104</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Clinical and regulatory services</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">21</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">59</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Contract manufacture services</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">21</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Property taxes</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">20</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">21</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Franchise taxes</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">5</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">60</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 2.35pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">413</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">477</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 7 &#8211; COMMON STOCK WARRANTS</b></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company has outstanding common stock purchase warrants at December 31, 2012 exercisable for 1.9 million shares of common stock, all of which contain a cashless exercise feature. These warrants have an exercise price of $3.40 per share and expiration date of August 2014.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 8 &#8211; INCOME TAXES </b></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Provision for Income Taxes</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The reconciliation between our provision for income taxes and the amounts computed by multiplying our income (loss) before taxes by the U.S. statutory tax rate is as follows<font style="color: black;">:</font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; width: 58%; font-size: 10pt;">Tax (benefit) at U.S. statutory 34%&#160; tax rate</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(3,287</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">3,510</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(4,320</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">State taxes (benefit), net of federal effect</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">6</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(56</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Research and development tax credits</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(77</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(45</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Share-based compensation</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">473</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">626</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Other</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(55</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(316</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Change in valuation allowance</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,812</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(3,863</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4,748</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.35pt; font-size: 10pt;">Provision for income taxes</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">147</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">11</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The tax expense 2011 is federal alternative minimum taxes (&#8220;AMT&#8221;) and current state taxes, and for 2010 it is current state taxes.</p> <p style="text-align: justify; text-indent: 0.3in; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Deferred Tax Assets and Valuation Allowance</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Deferred tax assets reflect the tax effects of net operating losses (&#8220;NOLs&#8221;), tax credit carryovers, and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The most significant item of our deferred tax assets is derived from our Federal NOLs. We have approximately $26.7 million federal income tax benefits at December 31, 2012 derived from $78.5 million Federal NOLs at the U.S. statutory tax rate of 34%, available to offset future taxable income, some of which have limitations for use as prescribed under IRC Section 382. Our NOLs will expire in varying amounts between 2013 and 2031 if not used, and those expirations will cause fluctuations in our valuation allowances. The components of our deferred tax assets are as follows:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap">December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap">(in thousands)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Deferred tax assets:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Estimated future value of NOLs</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; width: 72%; padding-right: 0px; font-size: 10pt;">- Federal</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">26,674</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">22,963</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">- State</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,434</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,179</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Research and development tax credits</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">887</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">887</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Deferred program fee revenue</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Share-based compensation</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,486</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,628</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Other, net</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(8</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Total deferred taxes</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">35,461</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">32,649</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Valuation allowance</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(35,461</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(32,649</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Net deferred tax assets</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Realization of deferred tax assets is dependent upon future earnings, if any, and the timing and amount of which may be uncertain. Valuation allowances are placed on deferred tax assets when uncertainty exists on their near term utilization. We make periodic reviews of our valuation allowances and fluctuations can occur. Those fluctuations may be reflected as income tax expenses or benefits in the period they occur. In 2011 we decreased our valuation allowance to utilize the NOLs to offset our taxable income from our 2011 operating results; however we still incurred an AMT liability. We continue to maintain full valuation allowance against all of our deferred tax assets at December 31, 2012 due to uncertainties with respect to future utilization of net operating loss carryforwards. If in the future it is determined that amounts of our deferred tax assets would likely be realized, the valuation allowance would be reduced in the period in which such determination is made and a benefit from income taxes in such period would be recognized.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Uncertainty in Income Taxes</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We adopted FASB&#8217;s statement regarding accounting for uncertainty in income taxes which defined the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authorities. Our adoption of the standard did not result in establishing a contingent tax liability reserve or a corresponding charge to retained earnings. At each of December 31, 2012, 2011, and 2010 we had no liability for income tax associated with uncertain tax positions. If in the future we establish a contingent tax liability reserve related to uncertain tax positions, our practice will be to recognize the interest in interest expense and the penalties in other non-operating expense.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company files federal and state income tax returns and in the normal course of business the Company is subject to examination by these taxing authorities. As of December 31, 2012, the Company&#8217;s tax years 2009, 2010 and 2011 are subject to examination by the taxing authorities. With few exceptions, we believe the Company is no longer subject to U.S. federal, state and local examinations by tax authorities for years before 2009. Tax year 2008 was open as of December 31, 2011.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 9 &#8211; EMPLOYEE BENEFIT PLANS </b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>401(k) and Profit-Sharing Plan</i></b><i> </i></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We have a 401(k) and Profit-Sharing Plan (the &#8220;Plan&#8221;) for our employees. Employees may elect to make a basic contribution of up to 15% of their annual earnings. The Plan provides that the Company can make discretionary matching contributions equal to 25% of the first 6% of employee contributions for an aggregate employee contribution of 1.5%, along with a discretionary profit-sharing contribution. We did not contribute matching or profit sharing contributions for the Plan in years 2012, 2011, and 2010.</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i></i></b>&#160;</p> <div style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Stock Option Plans</i></b><i> </i></div> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We maintain various stock option plans. <font style="color: black;">A summary of our stock option plans as of December 31, 2012, 2011, and 2010 and for the years then ended consisted of the following: </font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">Years Ended December 31,</font></td> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2012</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2011</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2010</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands except price data)</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number <br />of <br />Options</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted<br />Average<br />Exercise<br />Price</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />&#160;of<br />Options</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted<br />Average<br />Exercise<br />Price</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of<br />Options)</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted<br />Average<br />Exercise<br />Price</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; width: 40%; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, beginning</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,556</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">6.41</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">4,243</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">5.40</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,671</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">5.90</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Granted</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">475</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2.80</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">491</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3.63</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">649</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3.36</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Exercised</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(31</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1.30</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(1,102</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1.33</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Forfeited or expired</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(704</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">8.43</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(76</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3.15</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(77</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">10.10</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, ending</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,296</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.50</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,556</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">6.41</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">4,243</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.40</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Options exercisable</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,763</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.99</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,962</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">7.01</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,528</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.71</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">The following table summarizes information about nonvested stock options outstanding at December 31, 2012:</p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2"><font style="font-size: 9pt;">Number of <br />Options<br />Not<br />Exercisable</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2"><font style="font-size: 9pt;">Weighted<br />Average<br />Fair <br />Value</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6"><font style="font-size: 9pt;">(in thousands except per price data)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; width: 72%; font-size: 10pt;"><font style="font-size: 9pt;">Outstanding at December 31, 2011</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;"><font style="font-size: 9pt;">594</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;"><font style="font-size: 9pt;">3.22</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-left: 0.36in; font-size: 10pt;"><font style="font-size: 9pt;">Granted</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">475</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">2.62</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-left: 0.36in; font-size: 10pt;"><font style="font-size: 9pt;">Vested</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">(536</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">3.52</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 0.36in; font-size: 10pt;"><font style="font-size: 9pt;">Forfeited</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">Outstanding at December 31, 2012</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">533</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">2.77</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> </table> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We estimate the option&#8217;s fair value on the date of grant using the Black-Scholes option-pricing model. Black-Scholes utilizes assumptions related to volatility, the risk-free interest rate, the dividend yield (which is assumed to be zero, as we have not paid any cash dividends) and employee exercise behavior. Expected volatilities utilized in the Black-Scholes model are based on the historical volatility of our common stock price. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected life of the grants is derived from historical exercise activity. Historically, our stock options have been held until their expiration date. The assumptions used in the Black-Scholes model to determine fair value for the 2012, 2011 and 2010 stock option grants were:</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 2.35pt; width: 58%; font-size: 10pt;">Expected dividend yield</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">0.0</td> <td style="text-align: left; width: 1%; font-size: 10pt;">%</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">0.0</td> <td style="text-align: left; width: 1%; font-size: 10pt;">%</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">0.0</td> <td style="text-align: left; width: 1%; font-size: 10pt;">%</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 2.35pt; font-size: 10pt;">Risk-free interest rates</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1.7% to 2.0</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1.9% to 3.4</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3.5% to 3.9</td> <td style="text-align: left; font-size: 10pt;">%</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-left: 2.35pt; font-size: 10pt;">Average expected&#160; volatility</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">114</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">114</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">119</td> <td style="text-align: left; font-size: 10pt;">%</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 2.35pt; font-size: 10pt;">Expected term (years)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">10</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">10</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">10</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-left: 2.35pt; font-size: 10pt;">Weighted average grant date fair value</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">2.60</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">3.39</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">3.18</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px 0pt 13.7pt; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">As of December 31, 2012, 2011 and 2010 the aggregate intrinsic value of the option awards which were vested was $0.1 million, $0.3 million, and $2.4 million, respectively. In addition, the aggregate intrinsic value of option awards exercised during the year ended December 31, 2012 and 2011 was $0.1 million and $2.7 million, respectively. There were no options exercised in 2010. The total remaining unrecognized compensation cost related to the unvested option awards at December 31, 2012 was $1.5 million and is expected to be recognized in varying amounts over the twent-three months remaining in the requisite service period.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">During 2012, options to purchase 24 thousand shares of common stock were exercised utilizing various cashless exercise features of our stock option plan and after withholding shares for $31 thousand in exercise costs and $15 thousand in statutory minimum payroll taxes, we issued 9 thousand shares of common stock. During 2011 options to purchase 0.9 million shares of common stock were exercised utilizing various cashless exercise features of our stock option plan and after withholding shares for $1.3 million in exercise costs and $0.9 million in statutory minimum payroll taxes, we issued 0.4 million shares of common stock.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Restricted Stock Unit Award Plan </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We have a Restricted Stock Unit Award Plan (&#8220;2005 RSU Plan&#8221;) for our employees and non-employee directors. Vesting of an RSU entitles the holder to receive a share of common stock of the Company on a distribution date. <font style="color: black;">A summary of the RSU Plan as of December 31, 2012, 2011, and 2010, and for the years then ended consisted of the following: </font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">Years Ended December 31,</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2012</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2011</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2010</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of Vested <br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number of<br />Vested<br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of<br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of Vested<br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; width: 40%; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, beginning</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,316</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,267</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,316</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,112</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Granted</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Distributed</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Vested</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">49</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">155</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Forfeited or expired</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, ending</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1,658</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1,658</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,316</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,267</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The share-based compensation cost to be incurred on a granted RSU is the RSU&#8217;s fair value, which is the market price of the Company&#8217;s common stock on the date of grant, less its exercise cost. The compensation cost is amortized to expense over the vesting period of the RSU award. During 2011 all of the remaining unvested RSU awards became vested. The weighted average fair value of a RSU outstanding at December 31, 2012 is $3.75.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The 2005 RSU Plan provides that upon a change in control of the Company or upon termination of an employee&#8217;s employment with the Company without cause, vesting will accelerate and the RSUs will fully vest. Absent a change of control, one-fourth of vested shares of common stock underlying an RSU award will be distributed (after payment of $0.01 par value per share) on January 1 of each of 2011, 2012, 2013 and 2014. If a change in control occurs, the vested shares underlying the RSU award will be distributed at or about the time of the change in control. Each distribution date consisting of 0.83 million shares and occurred as follows:</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="margin-top: 0pt; width: 100%; font: 10pt times new roman, times, serif; margin-bottom: 0pt;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.25in;"></td> <td style="width: 0.25in;"><font style="font-family: symbol;">&#183;</font></td> <td style="text-align: justify;"><font style="color: black; font-size: 10pt;">On January 1, 2011, 0.54 million shares were distributed to the holders while 0.29 million shares were withheld by the Company upon elections made to exchange RSUs in satisfaction of $1.0 million withholding tax obligations, </font></td> </tr> </table> <table style="margin-top: 0pt; width: 100%; font: 10pt times new roman, times, serif; margin-bottom: 0pt;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.25in;"></td> <td style="width: 0.25in;"><font style="font-family: symbol;">&#183;</font></td> <td style="text-align: justify;"><font style="color: black; font-size: 10pt;">On January 1, 2012, 0.53 million shares were distributed to the holders while 0.30 million shares were withheld by the Company upon elections made to exchange RSUs in satisfaction of $1.0 million withholding tax obligations,</font></td> </tr> </table> <table style="margin-top: 0pt; width: 100%; font: 10pt times new roman, times, serif; margin-bottom: 0pt;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="width: 0.25in;"></td> <td style="width: 0.25in;"><font style="font-family: symbol;">&#183;</font></td> <td style="text-align: justify;"><font style="color: black; font-size: 10pt;">On January 1, 2013, 0.50 million shares were distributed to the holders while 0.33 million shares were withheld by the Company upon elections made to exchange RSUs in satisfaction of $0.7 million withholding tax obligations.</font></td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 10 &#8211; COMMITMENTS AND CONTINGENCIES </b></p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Facility Lease</i></b></p> <p style="text-indent: 31.5pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company leases administrative office space in Palatine Illinois under a lease expiring March 31, 2014 for approximately $25 thousand annually.</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i></i></b>&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Reglan</i></b><i>&#174;<b>/Metoclopramide Litigation </b></i></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Halsey Drug Company, as predecessor to us, has been named along with numerous other companies as a defendant in cases filed in three separate state coordinated litigations pending in Pennsylvania, New Jersey and California, respectively captioned In re: Reglan&#174;/Metoclopramide Mass Tort Litigation, Philadelphia County Court of Common Pleas, January Term, 2010, No. 01997; In re: Reglan&#174; Litigation, Superior Court of New Jersey, Law Division, Atlantic County, Case No. 289, Master Docket No. ATL-L-3865-10; and Reglan&#174;/Metoclopramide Cases, Superior Court of California, San Francisco County, Judicial Council Coordination Proceeding No. 4631, Superior Court No.: CJC-10-004631. In this product liability litigation against numerous pharmaceutical product manufacturers and distributors, including us, plaintiffs claim injuries from their use of the Reglan brand of metoclopramide and generic metoclopramide.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In the Pennsylvania state court mass tort proceeding, over 200 lawsuits have been filed against us and Halsey Drug Company alleging that plaintiffs developed neurological disorders as a result of their use of the Reglan brand and/or generic metoclopramide. Plaintiffs have filed approximately 150 lawsuits against us, but have served less than 50 individual lawsuits upon us in the New Jersey action. In the California action, we were not served with any complaints until the spring of 2011 when a single complaint including over 400 plaintiffs was served. To date, Acura has not been served with any metoclopramide lawsuits in jurisdictions other than Philadelphia, New Jersey and California state courts.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In the lawsuits filed to date, plaintiffs have not confirmed they ingested any of the generic metoclopramide manufactured by us. We discontinued manufacture and distribution of generic metoclopramide more than 15 years ago. In addition, we believe the June 23, 2011 decision by the U.S. Supreme Court in <i>PLIVA v. Mensing (&#8220;Mensing</i> decision&#8221;) holding that state tort law failure to warn claims against generic drug companies are pre-empted by the 1984 Hatch-Waxman Act Amendments and federal drug regulations will assist us in favorably resolving these cases. We have consistently maintained the position that these claims are without merit and intend to vigorously defend these actions.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">In New Jersey, Generic Defendants, including Acura, filed dispositive motions based on the <i>Mensing</i> decision, which the Court granted with a limited exception. </font>In June 2012, the New Jersey trial court dismissed Acura with prejudice. <font style="color: black;"></font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In Philadelphia, and California, Generic Defendants, including Acura, also filed dispositive motions based on the <i>Mensing</i> decision.</p> <p style="text-align: justify; text-indent: 0.7in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">On November 18, 2011, the Philadelphia trial court denied Generic Defendants&#8217; dispositive motion. In December 2011, the Generic Defendants appealed this ruling. </font>On April 13, 2012, all trial court proceedings were stayed pending decisions by the Pennsylvania appellate courts. On November 28, 2012, t<font style="color: black;">he Pennsylvania Superior Court </font>heard the appellate oral argument.<font style="color: black;"> A decision on this appeal should be issued later in 2013 and a further appeal to the Pennsylvania Supreme Court likely will follow. This appeal process eventually could result in dismissal of all of the Philadelphia cases against all generic defendants including Acura, although there can be no assurance in this regard. Legal fees related to this matter are currently covered by our insurance carrier.</font></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In California, the trial court issued an April 17, 2012 ruling (confirmed in a May 25, 2012 Order) denying Generic Defendants&#8217; dispositive preemption motions. The Generics Defendants&#8217; appeals from this order were denied by the California appellate courts. Therefore, plaintiffs are now permitted to proceed with their lawsuits including state law claims based on (1) failing to communicate warnings to physicians through &#8220;Dear Doctor&#8221; letters; (2) failure to update labeling to adopt brand labeling changes; and (3) failure to withdraw generic products from the market. Despite its refusal to grant the demurrer or motion to strike, the California trial court acknowledged the preemptive effect of <i>Mensing</i> so that any claim &#8220;that would render the generic defendants in violation of federal law if they are found responsible under a state law cause of action, would not be permissible.&#8221; <font style="color: black;">Nonetheless, plaintiffs have not confirmed they ingested any of the generic metoclopramide manufactured by us. </font>Therefore, we expect the number of plaintiffs with possible claims to be reduced voluntarily or by motion practice. <font style="color: black;">Action will be taken in an effort to dismiss Acura from these cases, although there can be no assurance in this regard. As any potential loss is neither probable nor estimable, we have not accrued for any potential loss related to this matter as of December 31, 2012. Legal fees related to this matter are currently covered by our insurance carrier.</font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Financial Advisor Agreement</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In connection with our August 2007 Unit Offering, we are obligated to pay a fee to our then financial advisor upon each exercise of the warrants issued in the Unit Offering, in proportion to the number of warrants exercised. The amount of the fee assuming 100% exercise of the remaining 1.9 million warrants is $0.38 million. We have not reflected this obligation as a liability in our consolidated financial statements as the payment is contingent upon the timing and exercise of the warrants by each of the warrant holders. Such fee, if any, will be paid to the financial advisor and be offset against the equity proceeds as the warrants are exercised.</p> <p style="text-indent: 0.1in; margin: 0pt 0px 0pt 1.2in; font: 10pt times new roman, times, serif;"><b>SUPPLEMENTARY DATA (UNAUDITED)</b></p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">Selected unaudited quarterly consolidated financial data is shown below (in thousands except per share data):</font><b> </b></p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">For Three Month Periods Ended</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Mar. 31, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">June 30, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Sept. 30, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Dec. 31, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Revenues (i)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; width: 44%; padding-right: 0px; font-size: 10pt;">Operating expenses</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,344</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,189</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,149</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">3,057</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Operating loss</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,344</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,189</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,149</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(3,057</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Net loss</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,333</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,179</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,140</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(3,016</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Basic loss per share</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.04</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Diluted loss per share</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.04</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> </table> <p style="margin: 0px;">&#160;</p> <table style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14">For Three Month Periods Ended</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">Mar. 31, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">June 30, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">Sept. 30, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">Dec. 31, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; width: 44%; padding-right: 0px; font-size: 10pt;">Revenues (i)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">233</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">20,233</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Operating expenses</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,067</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,871</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,147</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,847</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Operating income (loss)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,834</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">17,362</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,147</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(1,847</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Net income (loss)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,857</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">17,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,141</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(1,646</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Basic earnings (loss) per share</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">0.36</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.03</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Diluted earnings (loss) per share</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.35</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.03</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> </table> <p style="margin: 0px;">&#160;</p> <p style="margin-top: 0pt; text-indent: 0.5in; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">(i) See Note 2 for revenue recognition.</p> <p style="text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Basis of Presentation </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company&#8217;s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;). The consolidated financial statements include the accounts of </font>its wholly-owned subsidiary, Acura Pharmaceutical Technologies Inc.,<font style="color: black;"> after elimination of intercompany accounts and transactions.</font></p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Use of Estimates</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">Management is required to make certain estimates and assumptions in order to prepare consolidated financial statements in conformity with GAAP. Such estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities in the consolidated financial statements and accompanying notes. </font>Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Cash and Cash Equivalents</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company considers cash and cash equivalents to include cash in banks, U.S. Treasury Bills and money market funds. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. </font>Our cash and cash equivalents are governed by our investment policy as approved by our Board of Directors. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Fair Value of Other Financial Instruments</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The Company&#8217;s financial instruments consist primarily of cash and cash equivalents, marketable securities, accounts and other receivables, and trade accounts payable. The carrying amounts of these financial instruments, other than marketable securities, are representative of their respective fair values due to their relatively short maturities. As discussed below, marketable securities are recorded at fair value.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Marketable Securities</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company&#8217;s marketable securities primarily consist of corporate bonds and other instruments that invest in U.S. Treasury, U.S. agency securities and agency mortgage-backed securities. </font>Our marketable securities are governed by our investment policy as approved by our Board of Directors. <font style="color: black;">The Company&#8217;s marketable securities are classified as available-for-sale and are recorded at fair value, based upon quoted market prices or net asset value. Unrealized temporary adjustments to fair value are included in a separate component of stockholders&#8217; equity as unrealized gains and losses and reported as a component of accumulated other comprehensive income (loss). No gains or losses on marketable securities are realized until shares are sold or a decline in fair value is determined to be other-than-temporary. If a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.</font></p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Concentration of Credit Risk</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">We invest our excess cash in accordance with the investment policy </font>approved by our Board of Directors <font style="color: black;">that seeks a combination of both liquidity and safety of principal, such as investments in instruments issued by the United States government and high grade corporate bonds. </font></p> <p style="text-align: justify; text-indent: -13.5pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our accounts receivable arise from our product sales of Nexafed&#174; and represents amounts due from wholesalers in the health care and pharmaceuticals industries. The Company has performed a credit evaluation of its customers and may maintain an allowance for potentially uncollectable accounts. We have not experienced any losses on uncollectable accounts due to the recent market launch of Nexafed&#174; late in December 2012.</p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;"><b><i>Inventories </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Inventories consist of finished goods held for sale and distribution on our Nexafed&#174; product. Inventories are stated at the lower of cost (first-in, first-out method) or market (net realizable value). The Company writes down inventories to net realizable value based on forecasted demand and market conditions, which may differ from actual results. We had inventory valued at $0.2 million at December 31, 2012. We had no inventory at December 31, 2011. Purchases of active pharmaceutical ingredients and raw materials required for our development and clinical trial manufacture of product candidates utilizing our Aversion&#174; or Impede&#8482; Technologies are expensed as incurred.</p> <p style="text-indent: -11.45pt; margin: 0pt 0px 0pt 25.85pt; font: 10pt times new roman, times, serif;"><b><i>Property, Plant and Equipment </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Property, plant and equipment are stated at cost, less accumulated depreciation. We have no leasehold improvements. Betterments are capitalized and maintenance and repairs are charged to operations as incurred. When a depreciable asset is retired from service, the cost and accumulated depreciation is removed from the respective accounts.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Depreciation expense is recorded on a straight-line basis over the estimated useful lives of the related assets. The estimated useful lives of the major classification of depreciable assets are:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 60%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; width: 66%; padding-right: 2.35pt;">Building and improvements</td> <td style="padding-left: 2.35pt; width: 34%; padding-right: 2.35pt;">10 - 40 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Land improvements</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">20 - 40 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Machinery and equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 7 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Scientific equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 5 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Computer hardware and software</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 3 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Office equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 5 - 10 years</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Revenue Recognition</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Revenue is generally realized or realizable and earned when there is persuasive evidence an arrangement exists, delivery has occurred or services rendered, the price is fixed and determinable, and collection is reasonably assured. The Company records revenue from its Nexafed product sales when the price is fixed and determinable at the date of sale, title and risk of ownership have been transferred to the customer, and returns can be reasonably estimated.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Nexafed was launched in the fourth quarter of 2012. The Company sells Nexafed in the United States to wholesale pharmaceutical distributors subject to the right of return for a period of up to six months after the product expiration. Nexafed currently has a shelf life of twenty-four months from the date of manufacture. Given the limited sales history of Nexafed, the Company currently cannot reliably estimate expected returns of the product at the time of shipment. Accordingly, the Company defers recognition of revenue on the product shipments of Nexafed until the right of return no longer exists or adequate history and information is available to estimate product returns.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In connection with our License, Development, and Commercialization Agreement dated October 30, 2007 with King Pharmaceuticals Research and Development, Inc., now a subsidiary of Pfizer Inc. (the &#8220;Pfizer Agreement&#8221;), we recognize program fee revenue, collaboration revenue and milestone revenue.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Program fee revenue is derived from amortized upfront payments, such as the $30.0 million upfront payment from Pfizer received in December 2007, and license fees, such as the $3.0 million option exercise fee paid by Pfizer to us in each of May 2008 and December 2008 upon the exercise of its option to license a third and fourth opioid analgesic product candidate under the Pfizer Agreement. We assigned an equal portion of Pfizer&#8217;s $30.0 million upfront payment to each of three product candidates identified in the Pfizer Agreement and recognize the upfront payment as program fee revenue ratably over our estimate of the development period for each identified product candidate. We recognized no program fee revenue in 2012 and $0.5 million and $1.1 million of program fee revenue in 2011 and 2010, respectively.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Collaboration revenue is derived from reimbursement of development expenses, which are invoiced quarterly in arrears, and are recognized when costs are incurred pursuant to the Pfizer Agreement. The research and development services provided to Pfizer under the collaboration are priced at fair value based upon the reimbursement of expenses incurred pursuant to the collaboration with Pfizer. We recognized $2.2 million of collaboration revenue in 2010. There are no ongoing research and development services being provided to Pfizer and we had no collaboration revenue in 2012 or 2011.</p> <p style="text-align: justify; text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Milestone revenue is contingent upon the achievement of certain pre-defined events in the development of Oxecta Tablets and other product candidates licensed to Pfizer under the Pfizer Agreement. <font style="color: black;">Milestone payments from Pfizer are recognized as revenue upon achievement of the &#8220;at risk&#8221; milestone events, which represent the culmination of the earnings process related to that milestone. Milestone payments are triggered either by the results of our research and development efforts or by events external to us, such as regulatory approval to market a product. As such, the milestones are substantially at risk at the inception of the Pfizer Agreement, and the amounts of the payments assigned thereto are commensurate with the milestone achieved. In addition, upon the achievement of a milestone event, we have no future performance obligations related to that milestone payment. Each milestone payment is non-refundable and non-creditable when made. In June 2011, Pfizer paid us a $20.0 million milestone relating to the receipt of FDA approval of the NDA for Oxecta.</font></p> <p style="text-align: justify; margin: 0pt 0px 0pt 13.5pt; font: 10pt times new roman, times, serif;"><b><i>Shipping and Handling Costs</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company records shipping and handling costs in selling expenses. The amounts recorded from the launch of </font>Nexafed in the fourth quarter of 2012 were not material.</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Research and Development Activities</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Research and Development (&#8220;R&amp;D&#8221;) expenses include internal R&amp;D activities, external Contract Research Organization (&#8220;CRO&#8221;) services and their clinical research sites, and other activities. Internal R&amp;D activity expenses include facility overhead, equipment and facility maintenance and repairs, laboratory supplies, pre-clinical laboratory experiments, depreciation, salaries, benefits, and share-based compensation expenses. CRO activity expenses include preclinical laboratory experiments and clinical trial studies. Other activity expenses include regulatory consulting, and regulatory legal counsel. Internal R&amp;D activities and other activity expenses are charged to operations as incurred. We make payments to the CRO's based on agreed upon terms and may include payments in advance of a study starting date. We review and accrue CRO expenses and clinical trial study expenses based on services performed and rely on estimates of those costs applicable to the stage of completion of a study as provided by the CRO. Accrued CRO costs are subject to revisions as such studies progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. We had no accrued CRO costs at December 31, 2012 and had accrued<b> </b>$28 thousand of CRO and clinical trial study expenses at December 31, 2011.</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Income Taxes </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We account for income taxes under the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and the income tax basis of assets and liabilities and are measured using the enacted income tax rates and laws that will be in effect when the differences are expected to reverse. Additionally, net operating loss and tax credit carryforwards are reported as deferred income tax assets. The realization of deferred income tax assets is dependent upon future earnings. A valuation allowance is required against deferred income tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred income tax assets may not be realized. At both December 31, 2012 and 2011, 100% of all remaining net deferred income tax assets were offset by a valuation allowance due to uncertainties with respect to future utilization of net operating loss carryforwards. If in the future it is determined that additional amounts of our deferred income tax assets would likely be realized, the valuation allowance would be reduced in the period in which such determination is made and an additional benefit from income taxes in such period would be recognized.</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Comprehensive Income (Loss)</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Comprehensive income (loss) includes all changes in equity during a period except those that resulted from investments by or distributions to the Company&#8217;s stockholders. Other comprehensive income (loss) refers to revenues, expenses, gains and losses that, under GAAP, are included in comprehensive income (loss), but excluded from net income (loss) as these amounts are recorded directly as an adjustment to stockholders&#8217; equity. Acura&#8217;s other comprehensive income (loss) is composed of unrealized gains (losses) on certain holdings of marketable securities, net of any realized gains (losses) included in net income (loss).</p> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Earnings Per Share (&#8220;EPS&#8221;)</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Basic EPS is computed by dividing net income or loss by the weighted average common shares outstanding during a period, including shares weighted related to vested RSUs (See Note 9). Diluted EPS is based on the treasury stock method and computed based on the same number of shares used in the basic share calculation and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options and stock warrants, assuming the exercise of all in-the-money stock options and warrants. Common stock equivalents are excluded from the computation where their inclusion would be anti-dilutive. No such adjustments were made for either 2012 or 2010 as the Company reported a net loss for the years and including the effects of common stock equivalents in the diluted EPS calculation would have been antidilutive. In 2011, stock awards to purchase 2.8 million common shares were outstanding but not included in the computation of diluted EPS as the awards were anti-dilutive.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">A reconciliation of the numerators and denominators of basic and diluted EPS consisted of the following:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">Years ended December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands except per share data)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">EPS - basic</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; width: 58%; padding-right: 0px; font-size: 10pt;">Numerator: net income (loss)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(9,668</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">10,385</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(12,707</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Denominator:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common shares</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,863</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,016</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">43,842</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Vested RSUs</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,658</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,480</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,187</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Basic weighted average shares outstanding</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,521</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,496</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">EPS - basic</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.22</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">EPS &#8211; assuming dilution</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Numerator: net income (loss)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(9,668</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">10,385</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(12,707</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Denominator:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common shares</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,863</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,016</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">43,842</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Vested RSUs</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,658</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,489</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,187</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock options</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">366</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common stock warrants</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">136</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Diluted weighted average shares outstanding</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,521</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">48,007</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">EPS - diluted</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.22</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Excluded dilutive securities:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Common stock issuable:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock options</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,296</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,805</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,243</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common stock warrants</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,856</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,193</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSUs</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">49</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Total excluded potentially dilutive shares</td> </tr> </table> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;"><b><i>Share-based Compensation </i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We have three share-based compensation plans covering stock options and Restricted Stock Units (&#8220;RSU&#8221;) for our employees and directors, which are described more fully in Note 9.</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">We measure our compensation cost related to share-based payment transactions based on fair value of the equity or liability instrument issued. For purposes of estimating the fair value of each stock option unit on the date of grant, we utilize the Black-Scholes option-pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected volatility factor of the market price of our common stock (as determined by reviewing our historical public market closing prices). Our accounting for share-based compensation for RSUs is based on the fair-value method. The fair value of the RSUs is the market price of our common stock on the date of grant, less its exercise cost.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">Our share-based compensation expense recognized in the Company&#8217;s results of operations comprised the following:</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">Year Ended December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Research and development:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; width: 58%; padding-right: 0px; font-size: 10pt;">Stock option awards</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">375</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">457</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">1,419</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSU awards</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">75</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">278</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">375</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">532</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,697</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Selling, general and administrative:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock option awards</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,358</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,698</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,365</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSU awards</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">228</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">684</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,358</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,926</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">5,049</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,733</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,458</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">6,746</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Recent Accounting Pronouncements</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In June 2011, the FASB issued a final standard requiring entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. The new standard eliminates the option to present items of other comprehensive income in the statement of changes in equity. The new requirements do not change which components of comprehensive income are recognized in net income or other comprehensive income, or when an item of other comprehensive income must be reclassified to net income. Also, earnings per share computations do not change. The new requirements are effective for interim and annual periods beginning after December 15, 2011, with early adoption permitted. Full retrospective application is required. The Company adopted this standard for the annual period ended December 31, 2011 but because we had no other comprehensive income, there was no change in our financial statement presentations. During 2012 we had other comprehensive income and had applied retroactive application to the annual periods ended December 31, 2011 and 2010. The Company elected to present net income and other comprehensive income in a single continuous statement of net income and other comprehensive income. As this standard related only to the presentation of other comprehensive income, the adoption of this accounting standard did not have an impact on the Company&#8217;s consolidated financial statements.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The estimated useful lives of the major classification of depreciable assets are:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 60%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; width: 66%; padding-right: 2.35pt;">Building and improvements</td> <td style="padding-left: 2.35pt; width: 34%; padding-right: 2.35pt;">10 - 40 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Land improvements</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">20 - 40 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Machinery and equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 7 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Scientific equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 5 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Computer hardware and software</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 3 - 10 years</td> </tr> <tr style="vertical-align: top;"> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">Office equipment</td> <td style="padding-left: 2.35pt; padding-right: 2.35pt;">&#160; 5 - 10 years</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">A reconciliation of the numerators and denominators of basic and diluted EPS consisted of the following:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">Years ended December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands except per share data)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">EPS - basic</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; width: 58%; padding-right: 0px; font-size: 10pt;">Numerator: net income (loss)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(9,668</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">10,385</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(12,707</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Denominator:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common shares</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,863</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,016</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">43,842</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Vested RSUs</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,658</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,480</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">3,187</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Basic weighted average shares outstanding</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,521</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,496</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">EPS - basic</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.22</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">EPS &#8211; assuming dilution</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Numerator: net income (loss)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(9,668</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">10,385</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(12,707</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Denominator:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common shares</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,863</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">45,016</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">43,842</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Vested RSUs</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,658</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,489</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,187</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock options</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">366</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common stock warrants</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">136</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Diluted weighted average shares outstanding</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,521</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">48,007</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">47,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">EPS - diluted</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.22</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Excluded dilutive securities:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Common stock issuable:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock options</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,296</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,805</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,243</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Common stock warrants</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,856</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,193</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSUs</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">49</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Total excluded potentially dilutive shares</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">5,152</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,805</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">6,485</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: -16.6pt; margin: 0pt 0px 0pt 31pt; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.5in; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">Our share-based compensation expense recognized in the Company&#8217;s results of operations comprised the following:</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">Year Ended December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Research and development:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; width: 58%; padding-right: 0px; font-size: 10pt;">Stock option awards</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">375</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">457</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">1,419</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSU awards</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">75</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">278</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">375</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">532</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,697</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Selling, general and administrative:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Stock option awards</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,358</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,698</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,365</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">RSU awards</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">228</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">684</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,358</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,926</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">5,049</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,733</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,458</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">6,746</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: 0.2in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Property, plant and equipment are summarized as follows:</p> <p style="text-indent: 0.2in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 70%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="6">December 31,</td> <td style="text-align: center; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6">(in thousands)</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; width: 68%; font-size: 10pt;">Building and improvements</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">1,259</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">1,252</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Scientific equipment</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">595</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">583</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Computer hardware and software</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">255</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">270</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Machinery and equipment</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">229</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">117</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Land and improvements</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">162</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">162</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Other personal property</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">70</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">70</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Office equipment</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">27</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-left: 2.35pt; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,597</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,481</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Less accumulated depreciation and amortization</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(1,545</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(1,437</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.35pt; font-size: 10pt;">Total property, plant and equipment, net</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,052</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">1,044</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: 0.2in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Accrued expenses are summarized as follows:</p> <p style="text-indent: 0.2in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 70%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="6">December 31,</td> <td style="text-align: center; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt; font-weight: bold;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6">(in thousands)</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; width: 68%; font-size: 10pt;">Professional services</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">216</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">191</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Other fees and services</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">75</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">42</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Payroll, payroll taxes and benefits</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">55</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">104</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Clinical and regulatory services</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">21</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">59</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Contract manufacture services</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">21</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Property taxes</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">20</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">21</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Franchise taxes</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">5</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">60</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 2.35pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">413</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">477</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Investments in marketable securities consisted of the following:</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">December 31, 2012</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">(in millions)</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Marketable securities:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; width: 86%; padding-right: 0px; font-size: 10pt;">Corporate bonds &#8212; maturing within one year</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">1.2</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; color: black; font-size: 10pt;">Corporate bonds &#8212; maturing after one through four years</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">6.3</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Pooled investment fund</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; color: black; font-size: 10pt;">Exchange-traded funds</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Total marketable securities</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">19.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table provides a summary of the fair value and unrealized gains (losses) related to the Company&#8217;s available-for-sale securities:</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 70%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">December 31, 2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">(in millions)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Cost</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Gross<br />Unrealized<br />Gains</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Gross<br />Unrealized<br />Losses</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Fair <br />Value</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: -8.8pt; padding-left: 8.8pt; font-size: 10pt;">Available-for-sale:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -8.8pt; padding-left: 18.7pt; width: 36%; font-size: 10pt;">Corporate bonds</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.6</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">(0.1</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.5</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -8.8pt; padding-left: 18.7pt; font-size: 10pt;">Pooled investment fund</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: -8.8pt; padding-left: 18.7pt; font-size: 10pt;">Exchange-traded funds</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -8.8pt; padding-left: 28.6pt; font-size: 10pt;">Total - Current</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">20.0</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.1</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">19.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our assets measured at fair value or disclosed at fair value on a recurring basis as at December 31, 2012 consisted of the following (in millions):</p> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 70%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">December 31, 2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">(in millions)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Level 1</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Level 2</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Level 3</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="font-size: 10pt;">Assets:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 0.12in; width: 36%; color: black; font-size: 10pt;">Corporate bonds</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.5</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.5</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 0.12in; color: black; font-size: 10pt;">Pooled investment fund</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 0.12in; color: black; font-size: 10pt;">Exchange-traded funds</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 0.24in; color: black; font-size: 10pt;">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">19.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">11.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The reconciliation between our provision for income taxes and the amounts computed by multiplying our income (loss) before taxes by the U.S. statutory tax rate is as follows<font style="color: black;">:</font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="10" nowrap="nowrap">(in thousands)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; width: 58%; font-size: 10pt;">Tax (benefit) at U.S. statutory 34%&#160; tax rate</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(3,287</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">3,510</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">(4,320</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">State taxes (benefit), net of federal effect</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">6</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(56</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Research and development tax credits</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(77</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(45</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Share-based compensation</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">473</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">626</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Other</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(55</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(316</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -5.05pt; padding-left: 5.05pt; font-size: 10pt;">Change in valuation allowance</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">2,812</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(3,863</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4,748</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 2.35pt; font-size: 10pt;">Provision for income taxes</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">147</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">11</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The components of our deferred tax assets are as follows:</p> <p style="text-align: justify; margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap">December 31,</td> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap">(in thousands)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Deferred tax assets:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Estimated future value of NOLs</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; width: 72%; padding-right: 0px; font-size: 10pt;">- Federal</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">26,674</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">22,963</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">- State</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,434</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,179</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Research and development tax credits</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">887</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">887</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Deferred program fee revenue</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Share-based compensation</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,486</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">4,628</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Other, net</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(20</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(8</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: justify; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Total deferred taxes</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">35,461</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">32,649</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Valuation allowance</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(35,461</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(32,649</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Net deferred tax assets</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; text-indent: 0in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">A summary of our stock option plans as of December 31, 2012, 2011, and 2010 and for the years then ended consisted of the following: </font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">Years Ended December 31,</font></td> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2012</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2011</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2010</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands except price data)</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number <br />of <br />Options</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted<br />Average<br />Exercise<br />Price</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />&#160;of<br />Options</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted<br />Average<br />Exercise<br />Price</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of<br />Options)</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Weighted<br />Average<br />Exercise<br />Price</font></td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; width: 40%; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, beginning</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,556</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">6.41</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">4,243</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">5.40</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,671</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">5.90</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Granted</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">475</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2.80</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">491</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3.63</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">649</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3.36</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Exercised</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(31</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1.30</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(1,102</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1.33</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Forfeited or expired</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(704</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">8.43</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(76</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3.15</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(77</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">10.10</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, ending</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,296</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.50</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,556</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">6.41</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">4,243</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.40</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Options exercisable</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,763</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.99</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,962</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">7.01</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,528</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">5.71</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">The following table summarizes information about nonvested stock options outstanding at December 31, 2012:</p> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2"><font style="font-size: 9pt;">Number of <br />Options<br />Not<br />Exercisable</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2"><font style="font-size: 9pt;">Weighted<br />Average<br />Fair <br />Value</font></td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6"><font style="font-size: 9pt;">(in thousands except per price data)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; width: 72%; font-size: 10pt;"><font style="font-size: 9pt;">Outstanding at December 31, 2011</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;"><font style="font-size: 9pt;">594</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 10%; font-size: 10pt;"><font style="font-size: 9pt;">3.22</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-left: 0.36in; font-size: 10pt;"><font style="font-size: 9pt;">Granted</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">475</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">2.62</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-left: 0.36in; font-size: 10pt;"><font style="font-size: 9pt;">Vested</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">(536</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">3.52</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 0.36in; font-size: 10pt;"><font style="font-size: 9pt;">Forfeited</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">Outstanding at December 31, 2012</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">533</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 9pt;">$</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 9pt;">2.77</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 9pt;">&#160;</font></td> </tr> </table> <p style="margin: 0pt 0px 0pt 0.2in; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The assumptions used in the Black-Scholes model to determine fair value for the 2012, 2011 and 2010 stock option grants were:</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2011</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2">2010</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 2.35pt; width: 58%; font-size: 10pt;">Expected dividend yield</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">0.0</td> <td style="text-align: left; width: 1%; font-size: 10pt;">%</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">0.0</td> <td style="text-align: left; width: 1%; font-size: 10pt;">%</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">0.0</td> <td style="text-align: left; width: 1%; font-size: 10pt;">%</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 2.35pt; font-size: 10pt;">Risk-free interest rates</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1.7% to 2.0</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1.9% to 3.4</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3.5% to 3.9</td> <td style="text-align: left; font-size: 10pt;">%</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-left: 2.35pt; font-size: 10pt;">Average expected&#160; volatility</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">114</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">114</td> <td style="text-align: left; font-size: 10pt;">%</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">119</td> <td style="text-align: left; font-size: 10pt;">%</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 2.35pt; font-size: 10pt;">Expected term (years)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">10</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">10</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">10</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-left: 2.35pt; font-size: 10pt;">Weighted average grant date fair value</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">2.60</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">3.39</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">3.18</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">A summary of the RSU Plan as of December 31, 2012, 2011, and 2010, and for the years then ended consisted of the following: </font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">Years Ended December 31,</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2012</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2011</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="6" nowrap="nowrap"><font style="font-size: 8pt;">2010</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="22" nowrap="nowrap"><font style="font-size: 8pt;">(in thousands)</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of Vested <br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number of<br />Vested<br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of<br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap"><font style="font-size: 8pt;">Number<br />of Vested<br />RSUs</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; width: 40%; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, beginning</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,316</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,267</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,316</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; width: 2%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; width: 6%; font-size: 10pt;"><font style="font-size: 8pt;">3,112</font></td> <td style="text-align: left; padding-bottom: 1pt; width: 1%; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Granted</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Distributed</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">(829</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">)</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Vested</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">49</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">155</font></td> <td style="text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Forfeited or expired</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">-</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;"><font style="font-size: 8pt;">Outstanding, ending</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1,658</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">1,658</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">2,487</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,316</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;"><font style="font-size: 8pt;">3,267</font></td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;"><font style="font-size: 8pt;">&#160;</font></td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">Selected unaudited quarterly consolidated financial data is shown below (in thousands except per share data):</font><b> </b></p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">For Three Month Periods Ended</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Mar. 31, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">June 30, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Sept. 30, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Dec. 31, <br />2012</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Revenues (i)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; width: 44%; padding-right: 0px; font-size: 10pt;">Operating expenses</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,344</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,189</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">2,149</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 10%; font-size: 10pt;">3,057</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Operating loss</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,344</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,189</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,149</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(3,057</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Net loss</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,333</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,179</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,140</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(3,016</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Basic loss per share</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.04</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Diluted loss per share</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.04</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> </table> <p style="margin: 0px;">&#160;</p> <table style="width: 90%; border-collapse: collapse; font: 10pt times new roman, times, serif; margin-left: 0.5in;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14">For Three Month Periods Ended</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">Mar. 31, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">June 30, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">Sept. 30, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2">Dec. 31, <br />2011</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; width: 44%; padding-right: 0px; font-size: 10pt;">Revenues (i)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">233</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">20,233</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Operating expenses</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">3,067</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,871</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">2,147</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">1,847</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.12in; padding-right: 0px; font-size: 10pt;">Operating income (loss)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,834</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">17,362</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(2,147</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">(1,847</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Net income (loss)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,857</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">17,029</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(2,141</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(1,646</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Basic earnings (loss) per share</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">0.36</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; font-size: 10pt;">)</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">$</td> <td style="text-align: right; font-size: 10pt;">(0.03</td> <td style="text-align: left; font-size: 10pt;">)</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Diluted earnings (loss) per share</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.06</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">0.35</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.05</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.03</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> </tr> </table> <p style="margin: 0px;">&#160;</p> <p style="margin-top: 0pt; text-indent: 0.5in; font: 10pt times new roman, times, serif; margin-bottom: 0pt;">(i) See Note 2 for revenue recognition.</p> 10 years 10 years 40 years 3 years 10 years 20 years 5 years 40 years 10 years 7 years 5 years 10 years 1100000 500000 30000000 30000000 3000000 3000000 6000000 2200000 20000000 5000000 20000000 28000 6485000 49000 2193000 4243000 2805000 0 2800000 0 2805000 5152000 0 1856000 3296000 43842000 45016000 45863000 3187000 2480000 1658000 0 366000 0 0 136000 0 78500000 17500000 One-time $50 million sales milestone payment upon the first attainment of $750 million in net sales of all of our licensed products across all Pfizer Territories. 0.25 0.05 0.5000 0.8000 2481000 1252000 162000 117000 583000 270000 27000 70000 2597000 1259000 162000 229000 595000 255000 27000 70000 -1437000 -1545000 100000 100000 100000 104000 55000 191000 216000 60000 5000 21000 20000 0 21000 59000 21000 42000 75000 1200000 6300000 19900000 7500000 11900000 8000000 0 4400000 8000000 4400000 0 7500000 0 8000000 0 0 0 0 7500000 20000000 7600000 4400000 8000000 0 0 0 0 -100000 -100000 0 0 1900000 1900000 3.40 2014-08 -4320000 3510000 -3287000 -56000 6000 0 -45000 -77000 0 0 626000 473000 -316000 -55000 2000 4748000 -3863000 2812000 26700000 78500000 0.34 2031 2013 22963000 26674000 4179000 4434000 887000 887000 0 0 4628000 3486000 -8000 -20000 32649000 35461000 -32649000 -35461000 0 0 0.15 2400000 300000 100000 0 2700000 100000 1500000 900000 24000 1300000 31000 P23M 3.22 2.77 3.75 155000 0 540000 0 49000 530000 536000 0 500000 0 830000 330000 The Plan provides that the Company can make discretionary matching contributions equal to 25% of the first 6% of employee contributions for an aggregate employee contribution of 1.5%, along with a discretionary profit-sharing contribution. 900000 15000 400000 9000 0.01 700000 3671000 4243000 3556000 3296000 649000 491000 475000 77000 76000 704000 3528000 2962000 2763000 5.90 5.40 6.41 5.50 3.36 3.63 2.80 0 1.33 1.30 10.10 3.15 8.43 5.71 7.01 5.99 3112000 3316000 594000 3267000 3316000 594000 2487000 2487000 533000 1658000 1658000 0 0 0 0 475000 0 0 0 0 0 0 0 0 0 2.62 3.52 0 0.00 0.00 0.00 0.035 0.019 0.017 0.039 0.034 0.02 1.19 1.14 1.14 P10Y P10Y P10Y 3.18 3.39 2.60 0 0 -829000 -829000 -829000 -829000 200 150 50 400 380000 1.00 3067000 2871000 2147000 1847000 2344000 2189000 2149000 3057000 <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b>NOTE 6 &#8211; INVESTMENTS IN MARKETABLE SECURITIES</b></p> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Investments in marketable securities consisted of the following:</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 80%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">December 31, 2012</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">(in millions)</td> <td style="text-align: center; padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0px; padding-right: 0px; font-size: 10pt;">Marketable securities:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; width: 86%; padding-right: 0px; font-size: 10pt;">Corporate bonds &#8212; maturing within one year</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 10%; font-size: 10pt;">1.2</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; color: black; font-size: 10pt;">Corporate bonds &#8212; maturing after one through four years</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">6.3</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; font-size: 10pt;">Pooled investment fund</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: 0px; padding-left: 0.24in; padding-right: 0px; color: black; font-size: 10pt;">Exchange-traded funds</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: 0px; padding-left: 0.36in; padding-right: 0px; font-size: 10pt;">Total marketable securities</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">19.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><font style="color: black;">The Company&#8217;s marketable securities are classified as available-for-sale and are recorded at fair value based on quoted market prices using the specific identification method. The purchase cost of corporate bonds may include a purchase price premium or discount which will be amortized or accreted against earned interest income to the maturity date of the bond. Our investments are classified as current in the Company&#8217;s Consolidated Balance Sheet as they may be sold within one year </font><font style="color: #111111;">in response to changes in market prices or interest rates, to realign our investment concentrations or to meet our working capital needs.</font></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">The following table provides a summary of the fair value and unrealized gains (losses) related to the Company&#8217;s available-for-sale securities:</p> <p style="text-indent: 0.5in; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 70%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">December 31, 2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">(in millions)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="text-align: center; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Cost</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Gross<br />Unrealized<br />Gains</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Gross<br />Unrealized<br />Losses</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font: 10pt times new roman, times, serif;" colspan="2" nowrap="nowrap">Fair <br />Value</td> <td style="padding-bottom: 1pt; font: 10pt times new roman, times, serif;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-indent: -8.8pt; padding-left: 8.8pt; font-size: 10pt;">Available-for-sale:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; text-indent: -8.8pt; padding-left: 18.7pt; width: 36%; font-size: 10pt;">Corporate bonds</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.6</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">(0.1</td> <td style="text-align: left; width: 1%; font-size: 10pt;">)</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">$</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.5</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; text-indent: -8.8pt; padding-left: 18.7pt; font-size: 10pt;">Pooled investment fund</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; text-indent: -8.8pt; padding-left: 18.7pt; font-size: 10pt;">Exchange-traded funds</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -8.8pt; padding-left: 28.6pt; font-size: 10pt;">Total - Current</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">20.0</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">(0.1</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">)</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">19.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b></b>&#160;</p> <p style="text-indent: 11pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;"><b><i>Fair Value Measurement</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants. Fair values determined based on Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined based on Level 2 inputs utilize observable quoted prices for similar assets and liabilities in active markets and observable quoted prices for identical or similar assets in markets that are not very active. Fair values determined based on Level 3 inputs utilize unobservable inputs and include valuations of assets or liabilities for which there is little, if any, market activity. A financial asset or liability&#8217;s classification within the above hierarchy is determined based on the lowest level input that is significant to the fair value measurement. We had no liabilities at December 31, 2012 meeting fair value measurement.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Our assets measured at fair value or disclosed at fair value on a recurring basis as at December 31, 2012 consisted of the following (in millions):</p> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <table align="center" style="width: 70%; border-collapse: collapse; font: 10pt times new roman, times, serif;" cellspacing="0" cellpadding="0"> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">December 31, 2012</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="14" nowrap="nowrap">(in millions)</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="vertical-align: bottom;"> <td style="font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Level 1</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Level 2</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: center; font-size: 10pt;" colspan="2" nowrap="nowrap">Level 3</td> <td style="padding-bottom: 1pt; font-size: 10pt;" nowrap="nowrap">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="font-size: 10pt;">Assets:</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="text-align: left; padding-left: 0.12in; width: 36%; color: black; font-size: 10pt;">Corporate bonds</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.5</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">7.5</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="width: 2%; font-size: 10pt;">&#160;</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> <td style="text-align: right; width: 12%; font-size: 10pt;">-</td> <td style="text-align: left; width: 1%; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="text-align: left; padding-left: 0.12in; color: black; font-size: 10pt;">Pooled investment fund</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="font-size: 10pt;">&#160;</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> <td style="text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: white; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 0.12in; color: black; font-size: 10pt;">Exchange-traded funds</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">4.4</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> <tr style="background-color: #ccffcc; vertical-align: bottom;"> <td style="padding-bottom: 1pt; padding-left: 0.24in; color: black; font-size: 10pt;">Total</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">19.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">11.9</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">8.0</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="padding-bottom: 1pt; font-size: 10pt;">&#160;</td> <td style="border-bottom: black 1pt solid; text-align: left; font-size: 10pt;">$</td> <td style="border-bottom: black 1pt solid; text-align: right; font-size: 10pt;">-</td> <td style="text-align: left; padding-bottom: 1pt; font-size: 10pt;">&#160;</td> </tr> </table> <p style="text-indent: 23.1pt; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-indent: 0.1in; margin: 0pt 0px 0pt 0.1in; font: 10pt times new roman, times, serif;"><b><i>Accumulated Other Comprehensive Income (Loss)</i></b></p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">Unrealized gains or losses on marketable securities are recorded in accumulated other comprehensive (loss) income. Accumulated other comprehensive income (loss) at December 31, 2012 consisted of unrealized losses on securities of $40 thousand.</p> 0 200000 See Note 2 for revenue recognition. 290000 300000 0000786947us-gaap:RestrictedStockUnitsRSUMember2011-01-31 1000000 0000786947us-gaap:RestrictedStockUnitsRSUMember2012-01-31 1000000 0000786947acur:CashlessMember2012-01-012012-12-31 -15000 -15000 0000786947acur:PalatineLllinoisMember2012-01-012012-12-31 25000 Lease expiring March 31, 2014 6746000 6746000