STOCK OPTIONS

Stock Options.

The following table summarizes stock option activity during the three months ended March 31, 2016:



	Number of Options	Weighted-Average Exercise Price
Outstanding at January 1, 2016	1,107,794	$	3.45
Granted	14,000	1.07
Outstanding at March 31, 2016	1,121,794	$	3.42
Exercisable at March 31, 2016	468,451	$	5.25

During the three months ended March 31, 2016, we granted options to purchase 14,000 shares of our common stock at a weighted-average exercise price of $1.07 per share under our 2006 Equity Incentive Plan, as amended (the “Plan”). Options to purchase an aggregate of 12,350 shares of our common stock were granted during the three months ended March 31, 2015.

As of March 31, 2016, there were 468,451 options exercisable and 1,093,823 options were vested 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 three months ended March 31, 2016:



	Number of SARs	Weighted-Average Exercise Price
Outstanding at January 1, 2016	98,333	$	4.14
Outstanding at March 31, 2016	98,333	$	4.14
Exercisable at March 31, 2016	76,333	$	4.22

All outstanding SARs were issued solely to our executive officers.

As of March 31, 2016, 76,333 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.