3. Stock-Based Compensation Expense (Tables)

6 Months Ended

Jun. 30, 2012

Schedule Of Share Based Payment Valuation Assumptions

	Six Months Ended June 30, 2012		Six Months Ended June 30, 2011
Average expected life (years)		6.5		6.5
Average expected volatility		59.5%		55.8%
Average risk-free interest rate		2.0%		3.3%
Average expected dividend yield		0		0
Forfeiture rate		25.9%		25.9%

Summary of stock option activity

	Number of Shares Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value		Weighted Average Grant Date Fair Value
Options outstanding at December 31, 2011		3,470,351		$	0.26		7.87	$	205,638		–
Granted		471,281		$	0.36		–		–	$	0.30
Exercised		(5,506	)	$	0.23		–		–		–
Forfeited/Expired		(339,194	)	$	0.31		–		–		–
Options outstanding at June 30, 2012		3,596,932		$	0.27		7.62	$	18,358		–
Options vested and expected to vest at June 30, 2012		3,223,550		$	0.27		7.42	$	17,797		–
Options exercisable at June 30, 2012		2,210,421		$	0.24		6.75	$	15,334		–

Schedule Of Stock Option By Exercise Price Range

Range of Exercise Prices				Number of Shares Outstanding		Weighted Average Remaining Contractual Life in Years		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.15	$	0.20		870,066		7.45	$	0.18		701,694	$	0.18
$	0.22	$	0.24		452,000		7.91	$	0.23		331,229	$	0.23
$	0.25	$	0.25		751,545		5.05	$	0.25		738,190	$	0.25
$	0.26	$	0.34		745,031		9.10	$	0.27		217,568	$	0.27
$	0.35	$	0.82		778,290		8.69	$	0.42		221,740	$	0.43
$	0.15	$	0.82		3,596,932		7.62	$	0.27		2,210,421	$	0.24

Schedule Of Restricted Stock Activity

	Number of Shares Outstanding*			Weighted Average Fair Value
Restricted stock unreleased at December 31, 2011		252,687		$	0.64
Awarded		700,000		$	0.39
Released		–		$	–
Cancelled		(252,687	)	$	0.63
Restricted stock unreleased at June 30, 2012		700,000		$	0.39

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References+ Details

EdgeWave, Inc. 10-Q