Long-Term Incentive Plan and Other Compensatory Awards
12 Months Ended
Dec. 31, 2010
Long-Term Incentive Plan and Other Compensatory Awards

Note 17 — Long-Term Incentive Plan and Other Compensatory Awards

Cytomedix has a shareholder-approved, Long-Term Incentive Plan (“LTIP”) that permits incentive awards of options, stock appreciation rights, restricted stock awards, phantom stock awards, performance unit awards, dividend equivalent awards and other stock-based awards. Cytomedix may issue up to 6,500,000 shares of stock under this LTIP. At December 31, 2010, 680,746 shares were available for future grants. Of all options granted through December 31, 2010, 496,200 had been exercised and 5,323,054 remained outstanding. Option terms are set by the Board of Directors for each option grant, and generally vest immediately upon grant or over a period of time ranging up to three years, are exercisable in whole or installments, and expire ten years from the date of grant. These options expire at various dates through November 10, 2020.

A summary of option activity under the LTIP as of December 31, 2010, and changes during the year then ended is presented below:

       
LTIP Options   Shares   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Contractual Term		   Aggregate
Intrinsic
Value
Outstanding at January 1, 2010     4,616,554     $ 1.47                    
Granted     733,000     $ 0.52                    
Exercised     0       —                    
Forfeited or expired     (26,500 )    $ 0.63              
Outstanding at December 31, 2010     5,323,054     $ 1.34       5.9     $ 147,485  
Exercisable at December 31, 2010     4,411,061     $ 1.49       5.3     $ 113,033  

The following table summarizes information about stock options outstanding as of December 31, 2010:

         
  Options Outstanding   Options Exercisable
Range of
Exercise Prices		   Number of
Outstanding
Shares		   Weighted Average
Remaining
Contract Life		   Weighted Average

Exercise Price		   Number
Exercisable		   Weighted Average
Exercise Price
$0.30 – $1.50
     3,773,054       6.3     $ 0.93       2,921,061     $ 1.03  
$1.51 – $3.00
     1,480,000       4.8     $ 2.22       1,420,000     $ 2.25  
$3.01 – $4.50
     0       —       —       0       —  
$4.51 – $6.00
     70,000       5.0     $ 5.20       70,000     $ 5.20  

The weighted-average grant-date fair value of stock options granted under the LTIP during the years 2010 and 2009 was $0.39 and $0.47, respectively. No stock options were exercised under the LTIP during the fiscal years ended December 31, 2010 and 2009.

As of December 31, 2010, there was approximately $277,000 of total unrecognized compensation cost related to nonvested stock options granted under the LTIP. That cost is expected to be recognized over a weighted-average period of 2.2 years. The total fair value of stock options granted under the LTIP that vested during the fiscal years ended December 31, 2010 and 2009 was approximately $378,000 and $444,000, respectively.

Additionally, the Company has issued certain compensatory warrants outside of the LTIP, in exchange for the performance of services. A summary of service provider warrant activity as of December 31, 2010, and changes during the year then ended is presented below:

       
Warrants to Service Providers   Shares   Weighted-
Average
Exercise
Price		   Weighted-
Average
Remaining
Contractual
Term		   Aggregate
Intrinsic
Value
Outstanding at January 1, 2010     2,224,632     $ 1.55                    
Granted     0       —                    
Exercised     0       —              
Forfeited or expired     (825,000 )    $ 1.38  
Outstanding at December 31, 2010     1,399,632     $ 1.65       3.5     $ 0  
Exercisable at December 31, 2010     1,399,632     $ 1.65       3.5     $ 0  

The following table summarizes information about compensatory warrants outstanding as of December 31, 2010:

         
  Warrants Outstanding   Warrants Exercisable
Range of
Exercise Prices		   Number of
Outstanding
Shares		   Weighted Average
Remaining
Contract Life		   Weighted Average

Exercise Price		   Number
Exercisable		   Weighted Average
Exercise Price
$1.10 – $1.50
     950,149       3.6     $ 1.37       950,149     $ 1.37  
$1.51 – $3.00
     419,483       3.4     $ 1.96       419,483     $ 1.96  
$3.01 – $4.50
     0       —       —       0       —  
$4.51 – $6.00
     30,000       0.0     $ 6.00       30,000     $ 6.00  

As of December 31, 2010, there was no remaining unrecognized compensation cost related to warrants.

The Company has recorded stock-based compensation expense as follows:

   
  Year Ended December 31
Stock-Based Expense   2010   2009
Awards under the LTIP   $ 410,961     $ 431,846  
Awards outside the LTIP   $ —     $ 11,580  
     $ 410,961     $ 443,426  
Included in Statements of Operations caption as follows:
                  
Salaries and wages   $ 277,945     $ 374,544  
Consulting expense   $ 50,693     $ 11,580  
General and administrative   $ 82,323     $ 57,302  
     $ 410,961     $ 443,426