STOCK OPTIONS

Stock Options.

The following table summarizes stock option activity during the nine months ended September 30, 2014:



	Number of Options		Weighted-Average Exercise Price
Balance at January 1, 2014	565,028		$	7.19
Granted	237,546		5.32
Forfeited	(57,034	)	5.23
Expired	(545	)	14.28
Balance at September 30, 2014	744,995		$	6.75
Exercisable at September 30, 2014	264,089		$	9.50

During the nine months ended September 30, 2014, we granted options to purchase 237,546 shares of our common stock at a weighted-average exercise price of $5.32 per share under our 2006 Equity Incentive Plan, as amended (the “Plan”). Options to purchase an aggregate of 494,417 shares of our common stock were granted during the nine months ended September 30, 2013.

As of September 30, 2014, there were 264,089 options exercisable and 480,906 options expected to vest, all with an aggregate intrinsic value of zero.

Stock Appreciation Rights (“SARs”)

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



	Number of Options	Weighted-Average Exercise Price
Balance at January 1, 2014	138,333	$	4.32
Balance at September 30, 2014	138,333	$	4.32
Exercisable at September 30, 2014	47,033	$	4.32

All outstanding SARs were issued solely to our executive officers.

As of September 30, 2014, 47,033 shares subject to outstanding SARs were exercisable and 91,300 shares were expected to vest. The weighted-average exercise price of these SARs was $4.32 per share and the aggregate intrinsic value was zero.