DANBURY, Conn., Sept. 19 /PRNewswire-FirstCall/ -- Biodel Inc. (Nasdaq: BIOD) today announced that it will amend its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007 to correct the manner in which the Company recorded non-cash share-based compensation expense arising from stock options granted to non-employee directors at the time of the Company's initial public offering. The amendment will increase share-based compensation expense and is solely non-cash in nature.
On May 10, 2007, the Company granted options to purchase an aggregate of 200,000 shares of common stock at an exercise price of $15.00 (which was the price per share to the public in the Company's initial public offering). Pursuant to the terms of the Company's 2005 Non-Employee Directors' Stock Option Plan, all of the options were fully vested on the date of grant. Accordingly, the Company should have recorded non-cash share-based compensation expense of approximately $1.7 million. The Company recorded non- cash share-based compensation expense related to these options as if the options were to vest over a two-year period, as had been the case with earlier option grants to the Company's non-employee directors. Accordingly, in the third quarter of 2007, the Company only recorded approximately $0.1 million of share-based compensation expense related to these options and the Company would have recorded the remaining $1.6 million of previously disclosed unamortized expense ratably over such two-year period.
As a result, the Company will file amended unaudited financial
statements to record additional non-cash share-based compensation expense
of approximately $1.6 million for the three- and nine-month periods ended
June 30, 2007. The effect of this amendment will be to increase the
Company's general and administrative expenses and net loss applicable to
common stockholders for these periods by $1.6 million from the previously
reported amounts. In addition, the Comp
|SOURCE Biodel Inc.|
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