Notes to Consolidated Financial Statements (continued)
Notes to Consolidated Financial Statements
(continued)
40
A
s of December 31, 2008, there was US$3.2 million (2007: US$5.6 million) of total unrecognized compensation cost related to non-vested SARARs arrangements granted under the plan. That cost is expected to be recognized over a weighted average period of 3.2 years. The total fair value of shares vested during the year was US$1.4 million (2007: US$0). The compensation recognized in operating expenses for SARARS for the year ended December 31, 2008 was US$1.3 million (2007: US$0.5 million).
The Company plans to use authorized and un-issued shares to satisfy SARAR exercises.
Restricted Stock Grant
During the period from May 23, 2007 to December 31, 2007, the Company granted 50,000 shares of restricted stock to one employee of the Company at zero cost at the date of grant and requires the Company to issue common stock to the employee upon exercise of the restricted stock grant and 50% vests and becomes fully exercisable after one year and the balance after two years from the date of grant.
The fair value of these grants was determined by the Company at the grant date and was equal to the fair market value of the common stock at the date of grant. The fair value is amortised
to compensation expense on a straight line basis over the vesting period.
R
estricted stock grant activity during the period indicated
as follows:
A
ggregate
N
umber of
intrinsic
shares
value
Balance at May 23, 2007
—
Granted
50,000
Vested
—
E E
x
pired
—
Balance at December 31, 2007
50,000
$491,500
Granted
—
Vested
25,000
E E
x
pired
—
Balance at December 31, 2008
25,000
$ 15,500
E
xercisable at December 31, 2008
25,000
$ 15,500
The grant date fair value of restricted stock granted during from May 23, 2007 to December 31, 2007 was US$0.5 million.
A
summary of the status of the Company´s non-vested restricted stock grant as of December 31, 2008, and changes during the year, is presented below:
Weighted
average
N
umber of
grant-date
shares
fair value
Balance at May 23, 2007
—
$ —
Granted
50,000
9.83
Vested
—
—
E E
x
pired
—
—
Balance at December 31, 2007
50,000
9.83
Granted
—
—
Vested
25,000
9.83
E E
x
pired
—
—
Balance at December 31, 2008
25,000
$9.83
A
t December 31, 2008, there was US$0.2 million (2007: US$0.4 million) of total unrecognized compensation cost related to non-vested restricted stock granted under the plan. That cost is expected to be recognized over a weighted average period of nine months. The total fair value of shares vesting during the year to December 31, 2008 was US$0.2 million (2007: US$0). The compensation recognized in operating expenses for restricted stock granted for the year ended December 31, 2008 was US$0.2 million (2007: US$0.06 million).
The Company plans to use authorized and unissued shares as well as any treasury shares to satisfy restricted stock grant exercises.
(11) Research and Development Collaborations
The Company has the following significant research and development collaborative agreement outstanding at December 31, 2008 and 2007:
