(5) Stockholders’ Equity

(a) Warrants

As of March 31, 2012, the following warrants to purchase common stock were outstanding:

(b) Stock Options

On January 3, 2012, an additional 737,429 shares of common stock were made available under the Company’s 2010 Omnibus Incentive Compensation Plan, as amended and restated effective April 11, 2011 (the “2010 Plan”), pursuant to its “evergreen provision” bringing the total shares authorized under the 2010 Plan to 2,975,385.  As of March 31, 2012, there were 2,410,386 incentive and non-qualified stock options and 16,000 shares of restricted stock outstanding under this plan.  At March 31, 2012 there were 464,033 shares of common stock available for future grants under the 2010 Plan.

The following is a summary of stock option activity for the three months ended March 31, 2012:

Of the 654,346 stock options that were granted during the three months ended March 31, 2012, 22,758 were granted to certain directors pursuant to an election by such directors to receive all or a portion of their cash director fees in stock options.

The aggregate intrinsic value represents the total amount by which the value of the shares of common stock subject to such options exceeds the exercise price of such options, based on the Company’s closing stock price of $3.70 as of March 31, 2012.

Stock-based compensation expense related to stock options for the three months ended March 31, 2012 and 2011 was $331 and $254, respectively. As of March 31, 2012, there was $3,157 of unrecognized compensation expense related to unvested stock options, which is expected to be recognized over a weighted average period of 3.0 years.

Management calculates the fair value of stock options based upon the Black Scholes option pricing model. The following table summarizes the fair value and assumptions used in determining the fair value of stock options issued during the three months ended March 31, 2012.

The Company determined the options’ life based on the use of the simplified method.  As a newly public company, sufficient history to estimate the volatility of our common stock price is not available. The Company uses a basket of comparable public companies as a basis for the expected volatility assumption and dividend yield. The Company intends to continue to consistently apply this process using comparable companies until a sufficient amount of historical information regarding the volatility and dividend yield of the Company’s share price becomes available. The risk free interest rate is based on the yield of an applicable term Treasury instrument.

(c) Restricted Stock

The following is a summary of restricted stock activity for the three months ended March 31, 2012:

As of March 31, 2012, there was $96 of unrecognized compensation expense related to unvested restricted stock, which is expected to be recognized over a weighted average period of 3.1 years.