STOCK OPTIONS

Stock Options.

The following table summarizes stock option activity during the three months ended March 31, 2014:



	Number of Options		Weighted-Average Exercise Price
Balance at January 1, 2014	565,028		$	7.19
Granted	199,080		5.53
Forfeited	(18,623	)	4.80
Expired	(545	)	14.28
Balance at March 31, 2014	744,940		$	6.80
Exercisable at March 31, 2014	165,260		$	12.21

During the three months ended March 31, 2014, we granted options to purchase 199,080 shares of our common stock at a weighted-average exercise price of $5.53 per share under our 2006 Equity Incentive Plan (the “Plan”). Options to purchase an aggregate of 25,625 shares of our common stock were granted during the three months ended March 31, 2013.

Stock Appreciation Rights (“SARs”)

The following table summarizes SARs activity under the Plan during the three months ended March 31, 2014:



	Number of Options	Weighted-Average Exercise Price
Balance at January 1, 2014	138,333	$	4.32
Balance at March 31, 2014	138,333	$	4.32
Exercisable at March 31, 2014	—	$	—

All SARs outstanding were issued solely to our executive officers.

As of March 31, 2014, 138,333 shares subject to outstanding SARs were expected to vest. The weighted-average exercise price of these options was $4.32 and the aggregate intrinsic value was less than $0.1 million with a remaining weighted-average contractual life of 4.25 years.