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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2011	Jul. 31, 2011
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Entity Registrant Name	EnteroMedics Inc
Entity Central Index Key	0001371217
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,909,066

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 27,213,708	$ 30,840,560
Restricted cash	200,000	6,527,031
Prepaid expenses and other current assets	912,628	436,538
Total current assets	28,326,336	37,804,129
Property and equipment, net	616,795	741,564
Other assets	126,111	141,572
Total assets	29,069,242	38,687,265
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of notes payable	1,690,115	921,998
Accounts payable	122,365	125,188
Accrued expenses	2,455,770	2,538,371
Accrued interest payable	418,401	411,492
Total current liabilities	4,686,651	3,997,049
Notes payable, less current portion (net discounts of $312,735 and $421,874 at June 30, 2011 and December 31, 2010, respectively)	3,956,993	4,983,159
Total liabilities	8,643,644	8,980,208
Stockholders' equity:
Common stock, $0.01 par value 85,000,000 shares authorized; 27,898,527 and 27,892,388 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively	278,985	278,924
Additional paid-in capital	181,504,723	180,143,120
Deficit accumulated during development stage	(161,358,110)	(150,714,987)
Total stockholders' equity	20,425,598	29,707,057
Total liabilities and stockholders' equity	$ 29,069,242	$ 38,687,265

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets
Notes payable, less current portion, discounts	$ 312,735	$ 421,874
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	85,000,000	85,000,000
Common stock, shares issued	27,898,527	27,892,388
Common stock, shares outstanding	27,898,527	27,892,388

Condensed Consolidated Statements Of Operations - USD ($)	3 Months Ended		6 Months Ended		102 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Operating expenses:
Research and development	$ 3,315,165	$ 2,336,253	$ 6,103,417	$ 4,718,865	$ 106,211,753
Selling, general and administrative	2,065,694	1,778,202	4,134,248	3,744,377	43,719,871
Total operating expenses	5,380,859	4,114,455	10,237,665	8,463,242	149,931,624
Other income (expense):
Interest income	1,097	489	8,331	1,489	4,032,353
Interest expense	(164,262)	(325,318)	(395,862)	(688,880)	(11,235,773)
Change in value of warrant liability		187,081		158,834	(3,840,622)
Other, net	(13,081)	(6,890)	(17,927)	(15,261)	(251,476)
Net loss	$ (5,557,105)	$ (4,259,093)	$ (10,643,123)	$ (9,007,060)	$ (161,227,142)
Net loss per share-basic and diluted	$ (0.20)	$ (0.57)	$ (0.38)	$ (1.23)
Shares used to compute basic and diluted net loss per share	27,892,841	7,478,034	27,892,616	7,346,525

Condensed Consolidated Statements Of Cash Flows - USD ($)	6 Months Ended		102 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (10,643,123)	$ (9,007,060)	$ (161,227,142)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	143,328	191,862	2,099,394
Loss on sale of equipment	1,269	5,820	74,127
Stock-based compensation	1,394,295	1,493,631	12,964,765
Amortization of commitment fees, debt issuance costs and original issue discount	124,600	218,775	3,776,483
Amortization of short-term investment discount	(40)		(308,091)
Change in value of warrant liability		(158,834)	3,840,622
Change in operating assets and liabilities:
Prepaid expenses and other current assets	(476,090)	(148,395)	(912,628)
Other assets		(45,347)	(60,348)
Accounts payable	198,697	38,691	132,346
Accrued expenses	(82,601)	192,330	2,455,770
Accrued interest payable	6,909	71,260	584,223
Net cash used in operating activities	(9,332,756)	(7,147,267)	(136,580,479)
Cash flows from investing activities:
Decrease (increase) in restricted cash	6,327,031		(200,000)
Purchases of short-term investments available for sale	(2,000,000)		(16,882,233)
Maturities of short-term investments available for sale	2,000,040		16,854,454
Purchases of short-term investments held-to-maturity			(22,414,130)
Maturities of short-term investments held-to-maturity			22,750,000
Purchases of property and equipment	(221,348)	(21,388)	(2,800,296)
Net cash provided by (used in) investing activities	6,105,723	(21,388)	(2,692,205)
Cash flows from financing activities:
Proceeds from stock options exercised	2,164	23,697	203,018
Proceeds from warrants issued			1,429,646
Proceeds from warrants exercised	10,950		198,602
Proceeds from sale of common stock		4,834,894	98,404,793
Common stock financing costs	(45,745)	(339,547)	(8,310,104)
Payment to shareholders for fractional shares upon reverse stock split			(355)
Proceeds from sale of Series A, B and C convertible preferred stock			63,766,564
Series A, B and C convertible preferred stock financing costs			(1,658,662)
Proceeds from notes payable and convertible notes payable			42,645,967
Repayments on notes payable	(367,188)	(1,889,904)	(29,871,278)
Debt issuance costs			(321,799)
Net cash (used in) provided by financing activities	(399,819)	2,629,140	166,486,392
Net (decrease) increase in cash and cash equivalents	(3,626,852)	(4,539,515)	27,213,708
Cash and cash equivalents:
Beginning of period	30,840,560	14,617,594
End of period	27,213,708	10,078,079	27,213,708
Supplemental disclosure:
Interest paid	$ 264,313	390,280	6,866,462
Noncash investing and financing activities:
Cancellation of Alpha Medical, Inc. Series A convertible preferred stock and common stock			(661,674)
Issuance of Beta Medical, Inc. Series A convertible preferred stock in exchange for Alpha Medical, Inc. Series A convertible preferred stock and common stock			661,674
Value of warrants issued with debt and for debt commitment			3,833,183
Value of warrants issued with sale of common and preferred stock offerings			1,684,832
Cashless exercise of warrants			5,244,778
Conversion of notes and interest payable to Series B and C convertible preferred shares			6,980,668
Options issued for deferred compensation			10,898
Common stock issued to Mayo Foundation and for deferred compensation			1,770,904
Reclassifications of warrant liability		$ 312,751	2,932,766
Conversion of convertible preferred stock to common stock			$ 51,132

Summary Of Significant Accounting Policies

6 Months Ended

Jun. 30, 2011

Summary Of Significant Accounting Policies

Summary Of Significant Accounting Policies

(1)

Summary of Significant Accounting Policies

Description of Business

EnteroMedics Inc. (formerly Beta Medical, Inc.) (the Company) is developing implantable systems to treat obesity and other gastrointestinal disorders. The Company was incorporated in the state of Minnesota on December 19, 2002 and was reincorporated in Delaware on July 22, 2004. The Company is in the development stage and since inception has devoted substantially all of its resources to recruiting personnel, developing its product technology, obtaining patents to protect its intellectual property and raising capital, and has not derived revenues from its primary business activity. The Company is headquartered in St. Paul, Minnesota. In January 2006, the Company established EnteroMedics Europe Sárl, a wholly-owned subsidiary located in Switzerland.

Since inception, the Company has incurred losses through June 30, 2011 totaling approximately $161.2 million and has not generated positive cash flows from operations. The Company expects such losses to continue into the foreseeable future as it continues to develop and commercialize its technologies. The Company may need to obtain additional financing and there can be no assurance that the Company will be successful in obtaining additional financing on favorable terms, or at all. If adequate funds are not available, the Company may have to delay development or commercialization of products or license to third parties the rights to commercialize products or technologies that the Company would otherwise seek to commercialize.

Reverse Stock Split

The Company's Board of Directors and stockholders approved a 1-for-6 reverse split of the Company's outstanding common stock that became effective on July 9, 2010. The reverse stock split did not change the par value of the Company's stock or the number of common and preferred shares authorized by the Company's Fifth Amended and Restated Certificate of Incorporation, as amended. All share and per share amounts have been retroactively adjusted to reflect the stock split for all periods presented.

Basis of Presentation

The Company has prepared the accompanying condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. The Company's fiscal year ends on December 31.

The accompanying condensed consolidated financial statements and notes thereto are unaudited. In the opinion of the Company's management, these statements include all adjustments, which are of a normal recurring nature, necessary to present a fair presentation. Interim results are not necessarily indicative of results for a full year. The condensed consolidated balance sheet as of December 31, 2010 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The information included in this Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2010.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Comprehensive Loss

Comprehensive loss is defined as the change in equity of a company during a period from transactions and other events and circumstances excluding transactions resulting from investment owners and distributions to owners. There was no difference from reported net loss for the three and six months ended June 30, 2011 and 2010.

Fair Value of Financial Instruments

Carrying amounts of certain of the Company's financial instruments, including cash and cash equivalents, restricted cash, prepaid expenses and other current assets, accounts payable and accrued liabilities approximate fair value due to their short maturities. The fair value of the Company's long-term debt is approximately $5.6 million as of June 30, 2011 based on the present value of estimated future cash flows using a discount rate commensurate with borrowing rates available to the Company.

The Company's assets that are measured at fair value on a recurring basis are generally classified within Level 1 or Level 2 of the fair value hierarchy. The Company does not hold any assets that are measured at fair value using Level 3 inputs. The types of instruments the Company invests in that are valued based on quoted market prices in active markets include U.S. treasury securities. Such instruments are classified by the Company within Level 1 of the fair value hierarchy. U.S. treasuries are valued using unadjusted quoted prices for identical assets in active markets that the Company can access.

The types of instruments the Company invests in that are valued based on quoted prices in less active markets, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency include the Company's U.S. agency securities, commercial paper, U.S. corporate bonds and municipal obligations. Such instruments are classified by the Company within Level 2 of the fair value hierarchy. The Company values these types of assets using consensus pricing or a weighted average price, which is based on multiple pricing sources received from a variety of industry standard data providers (e.g. Bloomberg), security master files from large financial institutions, and other third-party sources. The multiple prices obtained are then used in a distribution-curve-based algorithm to determine the daily market price.

The Company did not hold any short-term investments as of June 30, 2011 or December 31, 2010. The Company recorded a financial liability in 2009 and through May 18, 2010 related to warrants outstanding, which was fair valued using Level 3 inputs (see "Derivative Instruments" below and Note 3).

Restricted Cash

The Company had $200,000 and $6.5 million in a cash collateral money market account as of June 30, 2011 and December 31, 2010, respectively. $6.3 million of the December 31, 2010 balance was established per the terms of the Third Amendment to the Loan Agreement with Silicon Valley Bank dated November 12, 2010, which required the Company to have an amount equal to the principal balance outstanding in the restricted account. The restricted cash balance was eliminated per the terms of the Fourth Amendment to the Loan Agreement with Silicon Valley Bank dated March 3, 2011 (see Note 3).

Pursuant to the Lease Agreement the Company entered into with Roseville Properties Management Company in July 2008, the Company was required to deliver to Roseville Properties an irrevocable, unconditional, standby letter of credit in the amount of $200,000 on the second anniversary of the commencement of lease payments. The standby letter of credit is to be maintained through October 1, 2013. The irrevocable standby letter of credit was issued by Silicon Valley Bank, who required the Company to set up a restricted cash collateral money market account to fully secure the standby letter of credit.

Derivative Instruments

The Company accounts for outstanding warrants that are not indexed to the Company's stock or warrants issued when the Company has insufficient authorized and unissued stock available to share settle the outstanding warrants as derivative instruments, which require that the warrants be classified as a liability and measured at fair value with changes in fair value recognized currently in earnings and recorded separately in the condensed consolidated statements of operations.

Effective January 1, 2009, as a result of a change in accounting guidance, the Company assessed any outstanding equity-linked financial instruments and concluded that warrants issued in November 2008 with a recorded value of $1.4 million on December 31, 2008 were to be reclassified from equity to a liability. The cumulative effect of the change in accounting principle on January 1, 2009 was a $130,968 increase to the deficit accumulated during development stage.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is based on the weighted-average common shares outstanding during the period plus dilutive potential common shares calculated using the treasury stock method. Such potentially dilutive shares are excluded when the effect would be to reduce a net loss per share. The Company's potential dilutive shares, which include outstanding common stock options, unvested common shares subject to repurchase, convertible preferred stock and warrants, have not been included in the computation of diluted net loss per share for all periods as the result would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share for the three and six months ended June 30, 2011 and 2010:


	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Numerator:
Net loss	$	(5,557,105	)	$	(4,259,093	)	$	(10,643,123	)	$	(9,007,060	)

Denominator for basic and diluted net loss per share:
Weighted-average common shares outstanding		27,892,841			7,478,034			27,892,616			7,346,525
Weighted-average unvested common shares subject to repurchase		—			—			—			—

Denominator for net loss per common share—basic and diluted		27,892,841			7,478,034			27,892,616			7,346,525

Net loss per share—basic and diluted	$	(0.20	)	$	(0.57	)	$	(0.38	)	$	(1.23	)

The following table sets forth the potential shares of common stock that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive as of the end of each period presented:


	June 30,
	2011		2010
Stock options outstanding		1,986,991		904,111
Warrants to purchase common stock		22,217,523		1,358,814

Recently Issued Accounting Standards

In April 2011, the Financial Accounting Standards Board (FASB) issued amendments to achieve common fair value measurement and disclosure requirements between accounting principles generally accepted in the United States of America and International Financial Reporting Standards. This new guidance amends current fair value measurement and disclosure guidance to include increased transparency around valuation inputs and investment categorization. This new guidance is effective for fiscal years and interim periods beginning after December 15, 2011. The Company does not expect the adoption of these amendments to have a material impact on the preparation of the consolidated financial statements.

In June 2011, the FASB issued new guidance on the presentation of comprehensive income. Specifically, the new guidance allows an entity to present components of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate, but consecutive statements. The new guidance eliminates the current option to report other comprehensive income and its components in the statement of changes in equity. While the new guidance changes the presentation of comprehensive income, there are no changes to the components that are recognized in net income or other comprehensive income under current accounting guidance. The new guidance is effective for fiscal years beginning after December 15, 2011. The Company does not expect the adoption of this new guidance to have a material impact on the preparation of the consolidated financial statements.

There have been no other significant changes in recent accounting pronouncements during the six months ended June 30, 2011 as compared to the recent accounting pronouncements described in the Company's Annual Report on Form 10-K for the year ended December 31, 2010.

Commitments

6 Months Ended

Jun. 30, 2011

Commitments

Commitments

(2)

Commitments

Operating Lease

The Company rents its office, warehouse and laboratory facilities under an operating lease, which expires on September 30, 2015. At June 30, 2011, future minimum payments under the lease were as follows:


Years ending December 31:
Remaining six months in 2011	$	137,965
2012		280,055
2013		285,656
2014		291,369
2015		221,789

	$	1,216,834

Notes Payable

6 Months Ended

Jun. 30, 2011

Notes Payable

Notes Payable

(3)

Notes Payable

On November 18, 2008 the Company entered into a new Loan and Security Agreement (the Loan Agreement) with Silicon Valley Bank (SVB), Venture Lending & Leasing V, Inc. (a private equity fund under the management of Western Technology Investment (WTI)) and Compass Horizon Funding Company LLC (Horizon and, collectively with SVB and WTI, the Lenders), in an aggregate principal amount of up to $20.0 million. On November 21, 2008, SVB and WTI each funded a Term Loan in the aggregate principal amount of $10.0 million and $5.0 million, respectively. The additional $5.0 million Term Loan was automatically funded by Horizon on April 28, 2009 when the trading price of the Company's common stock on the NASDAQ Global Market exceeded a target amount specified in the Loan Agreement. On December 1, 2009, the Company repaid the outstanding principal amount due to WTI and Horizon pursuant to the Loan Agreement.

Warrants were issued with the November 18, 2008 Loan Agreement that contained down round protection provisions through May 18, 2010. As of June 30, 2011, Horizon had outstanding 141,025 common stock warrants with an exercise price of $3.90 per share. The fair value of the warrant liability associated with these warrants was $312,751 as of May 18, 2010, the date on which the warrants' down round protection expired. This Level 3 fair value was calculated using a weighted-average Black-Scholes valuation model and the following assumptions: volatility between 113.25% and 113.33%, dividend rate of 0%, risk-free interest rate of 3.38% and a remaining life between 8.51 and 8.95 years. As a result of the down round protection expiring, on May 18, 2010 the Company recorded a decrease of $187,081 in the change in value of the warrant liability for the three months ended June 30, 2010, or a net decrease of $158,834 for the six months ended June 30, 2010, and reclassified the warrant liability to equity.

During 2010, the Company and SVB entered into three amendments to the Loan Agreement, which modified the payment terms, annual interest rate and financial covenants. A brief summary of the three amendments is provided below.

On February 8, 2010, the Company and SVB entered into the First Amendment to the Loan Agreement, which reduced the annual interest rate from 11.0% to a fixed annual rate of 10.0%, payable monthly, revised the liquidity financial covenant and added a New Capital Transaction covenant.

On July 8, 2010, the Company and SVB entered into a Second Amendment to the Loan Agreement, which modified the repayment terms of the loan such that interest only payments were required through December 31, 2010 followed by 30 equal payments of principal and interest, increased the annual interest rate from 10.0% to a fixed annual rate of 11.0%, payable monthly, revised the liquidity financial covenant and added additional New Capital Transaction requirements. On July 8, 2010, per the terms of the Second Amendment to the Loan Agreement, SVB was issued a warrant to purchase 150,642 shares of the Company's common stock with an exercise price of $2.10 per share.

On November 4, 2010, the Company and SVB entered into a Third Amendment (the Third Amendment) to the Loan Agreement, which modified the New Capital Transaction covenant, suspended the liquidity financial covenant and required the Company to maintain a blocked cash collateral account with funds equal to the principal balance outstanding.

On March 3, 2011 the Company entered into a Fourth Amendment (the Fourth Amendment) to the Loan Agreement with SVB. The Fourth Amendment modified the repayment terms of the Term Loan such that beginning April 1, 2011 through September 30, 2011, the Company is only required to make interest only monthly payments on the Term Loan. Then, beginning on October 1, 2011, the remaining balance due on the Term Loan will amortize over 30 equal payments of principal and interest, which will be payable monthly. In addition, the Fourth Amendment amended the interest rate due effective March 1, 2011 on the remaining principal amount of the Term Loan from 11.0% to a fixed annual rate of 6.25% if the liquidity ratio is greater than 1.50:1.00 and no Event of Default (as defined in the Loan Agreement) has occurred or is continuing or 9.00% if the liquidity ratio is less than 1.50:1.00 or an Event of Default has occurred or is continuing, payable monthly. The Fourth Amendment also reinstated the financial covenant related to the liquidity ratio, which is not permitted to be less than 1.00:1.00, and added an EBITDA test should the liquidity ratio fall below 1.50:1.00. The EBITDA test requires that the trailing 90 day actual EBITDA be more favorable than 110% of the projected EBITDA for the same period if the projected EBITDA for such period was less than zero or at least 90% of the projected EBITDA for the same period if the projected EBITDA for such period was greater than or equal to zero. In addition, the Fourth Amendment amended the prepayment terms of the Loan Agreement such that a Make-Whole Premium equal to 1% of the amount of the Term Loan being prepaid will be due for any voluntary or required prepayment of the Term Loan occurring before the first anniversary of the Fourth Amendment, unless the Term Loan is being voluntarily prepaid and replaced with a new SVB facility. Lastly, the Fourth Amendment eliminated SVB's springing lien on the Company's intellectual property, the New Capital Transactions requirement and the requirement of the Third Amendment to maintain a blocked cash collateral account with funds equal to the principal balance outstanding.

Scheduled debt principal payments are as follows as of June 30, 2011:


Years Ending December 31:
Remaining six months in 2011	$	554,810
2012		2,307,161
2013		2,458,599
2014		639,273

		5,959,843
Less: Original issue discount		(312,735	)

Notes payable, net	$	5,647,108

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

(4)

Stock-based Compensation

The fair value method of accounting for share-based payments is applied to all share-based payment awards issued to employees and where appropriate, nonemployees, unless another source of literature applies. When determining the measurement date of a nonemployee's share-based payment award, the Company measures the stock options at fair value and remeasures such stock options to the current fair value until the performance date has been reached.

Based on the application of these standards, stock-based compensation expense for stock-based awards under the Company's 2003 Stock Incentive Plan (the Plan) for the three and six months ended June 30, 2011 and 2010 was allocated to operating expenses and to employees and nonemployees as follows:


	Three months ended June 30,				Six months ended June 30,
	2011		2010		2011		2010
Research and development	$	234,794	$	257,114	$	471,489	$	534,400
Selling, general and administrative		499,090		466,209		922,806		959,231

Total	$	733,884	$	723,323	$	1,394,295	$	1,493,631


	Three months ended June 30,					Six months ended June 30,
	2011		2010			2011		2010
Employees	$	717,437	$	723,719		$	1,377,848	$	1,462,271
Nonemployees		16,447		(396	)		16,447		31,360

Total	$	733,884	$	723,323		$	1,394,295	$	1,493,631

As of June 30, 2011 there was approximately $4.7 million of total unrecognized compensation costs, net of estimated forfeitures, related to employee unvested stock option awards granted after January 1, 2006, which are expected to be recognized over a weighted-average period of 2.62 years.

The estimated grant-date fair values of the stock options were calculated using the Black-Scholes valuation model, based on the following assumptions for the three and six months ended June 30, 2011 and 2010:


	Employees						Employees
	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Risk-free interest rates		2.14%-2.21	%		2.39%-2.45	%		2.14%-2.68	%		2.39%-2.62	%
Expected life		6.00-6.25 years			6.00-6.25 years			5.42-6.25 years			6.00-6.25 years
Expected dividends		0	%		0	%		0	%		0	%
Expected volatility		121.35%-121.50	%		113.20%-114.85	%		121.35%-124.40	%		113.20%-117.43	%

	Nonemployees						Nonemployees
	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Risk-free interest rates		3.14	%		2.88%-3.07	%		3.14	%		2.88%-3.81	%
Expected life		9.85 years			9.01-9.62 years			9.85 years			9.01-9.87 years
Expected dividends		0	%		0	%		0	%		0	%
Expected volatility		116.90	%		113.25%-115.90	%		116.90	%		113.25%-116.10	%

Option activity under the Plan for the six months ended June 30, 2011 was as follows:


	Shares Available For Grant			Outstanding Options
	Shares Available For Grant			Number of Shares			Weighted-Average Exercise Price
Balance, December 31, 2010		1,423,361			812,515		$	5.60
Shares reserved		2,000,000			—			—
Options granted		(1,218,464	)		1,218,464			2.59
Options exercised		—			(1,139	)		1.90
Options cancelled		42,849			(42,849	)		3.43

Balance, June 30, 2011		2,247,746			1,986,991		$	3.80

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

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Cover Document And Entity Information Financial Statements Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) Condensed Consolidated Statements Of Operations Condensed Consolidated Statements Of Cash Flows Notes to Financial Statements Summary Of Significant Accounting Policies Commitments Notes Payable Stock-Based Compensation All Reports