STOCK OPTIONS

Stock Options.

The following table summarizes stock option activity during the three months ended March 31, 2015:



	Number of Options		Weighted-Average Exercise Price
Balance at January 1, 2015	685,984		$	6.56
Granted	12,350		2.01
Forfeited	(6,141	)	5.25
Expired	(46,399	)	10.20
Balance at March 31, 2015	645,794		$	6.22
Exercisable at March 31, 2015	308,870		$	7.83

During the three months ended March 31, 2015, we granted options to purchase 12,350 shares of our common stock at a weighted-average exercise price of $2.01 per share under our 2006 Equity Incentive Plan, as amended (the “Plan”). Options to purchase an aggregate of 199,080 shares of our common stock were granted during the three months ended March 31, 2014.

As of March 31, 2015, there were 308,870 options exercisable and 604,285 options were vested or 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 three months ended March 31, 2015:



	Number of Options	Weighted-Average Exercise Price
Balance at January 1, 2015	98,333	$	4.14
Balance at March 31, 2015	98,333	$	4.14
Exercisable at March 31, 2015	42,083	$	4.32

All outstanding SARs were issued solely to our executive officers.

As of March 31, 2015, 42,083 shares subject to outstanding SARs were exercisable and 98,333 shares were vested or expected to vest. The weighted-average exercise price of these SARs was $4.14 per share and the aggregate intrinsic value was zero.