STOCK OPTIONS

Stock Options.

The following table summarizes stock option activity during the six months ended June 30, 2014:



	Number of Options		Weighted-Average Exercise Price
Balance at January 1, 2014	565,028		$	7.19
Granted	214,296		5.47
Forfeited	(47,559	)	5.07
Expired	(545	)	14.28
Balance at June 30, 2014	731,220		$	6.82
Exercisable at June 30, 2014	194,663		$	11.03

During the six months ended June 30, 2014, we granted options to purchase 214,296 shares of our common stock at a weighted-average exercise price of $5.47 per share under our 2006 Equity Incentive Plan (the “Plan”). Options to purchase an aggregate of 159,375 shares of our common stock were granted during the six months ended June 30, 2013.

As of June 30, 2014, there were 731,220 options exercisable or expected to vest with an aggregate intrinsic value of zero.

Stock Appreciation Rights (“SARs”)

The following table summarizes SARs activity under the Plan during the six months ended June 30, 2014:



	Number of Options	Weighted-Average Exercise Price
Balance at January 1, 2014	138,333	$	4.32
Balance at June 30, 2014	138,333	$	4.32
Exercisable at June 30, 2014	—	$	—

All SARs outstanding were issued solely to our executive officers.

As of June 30, 2014, 138,333 shares subject to outstanding SARs were expected to vest. The weighted-average exercise price of these SARs was $4.32 and the aggregate intrinsic value was zero.