G.	Stock-Based Compensation

Under our 2008 Equity Incentive Plan, we reserved 1,000,000 shares of common stock for issuance, all of which had been issued as of December 31, 2013. In May 2012, our stockholders approved our 2012 Equity Incentive Plan, for which we have 750,000 shares of common stock reserved, of which 473,039 shares are unissued as of June 30, 2014.

Non-employee director stock grants

The following table details the stock granted to our non-employee directors under the 2008 and 2012 Plans during the six months ended June 30, 2014 and 2013. These shares were issued as part of our annual director compensation arrangements related to the prior years’ service, and were fully vested on the date of issuance.


Date of Grant	Number of Shares		Fair Value per Share⁽¹⁾		Fair Value of Grant
January 2014		25,310	$	8.89	$	226
January 2013		29,205	$	7.55		221

(1)	The fair value per share is equal to the closing price of our stock on the date of grant.

Restricted Stock Unit Grants (RSUs)

The following table summarizes our RSU activity for the year ended December 31, 2013, and the six months ended June 30, 2014:


	Number of RSUs			Grant Date Fair Value per Share⁽¹⁾		Grant Date Fair Value		Fair Value of RSUs at Vesting Date ⁽²⁾
Unvested RSUs at December 31, 2012		98,575
Granted		45,316		$	7.55	$	342
Vested		(16,640	)					$	125

Unvested RSUs at December 31, 2013		127,251
Granted		38,278		$	8.89	$	340
Vested		(22,929	)					$	178

Unvested RSUs at June 30, 2014		142,600

(1)	The grant date fair value per share is equal to the closing price of our stock on the date of grant.

(2)	The fair value of vested RSUs is calculated based on the closing stock price on the vesting date. The fair value of unvested RSUs at June 30, 2014, based on the closing price on that date, was $1.1 million.

In January 2014, the Compensation and Benefits Committee of our Board of Directors granted 38,278 RSUs to our executive officers. The RSUs were valued on the date of grant and the fair value of these awards was $8.89 per share. The issuance consisted of two separate tranches. The first tranche was for 24,811 RSUs which vest over five years at 25% annually beginning on the second anniversary of the grant date. The second tranche was for 13,467 RSUs which cliff vest after three years only if management achieves specific performance measures.

In January 2013, the Compensation and Benefits Committee of our Board of Directors granted 45,316 RSUs to our executive officers. The RSUs were valued on the date of grant and the fair value of these awards was $7.55 per share. The issuance consisted of three separate tranches. The first tranche was for 28,643 RSUs which vest over five years at 25% annually beginning on the second anniversary of the grant date. The second tranche was for 15,548 RSUs which cliff vest after three years only if management achieves specific performance measures. The third tranche was for 1,125 RSUs which vest over five years at 25% annually, beginning on the second anniversary of the grant date, and represented payment related to 2012 incentive bonus compensation exceeding targets.

Stock Options

Information relating to our outstanding stock options at June 30, 2014, is as follows:


Outstanding and Exercisable Options
Exercise Price		Shares		Weighted- Average Life (Years)		Intrinsic Value
$	2.30		258,723		4.59	$	1,405
$	5.77		31,923		2.65		62
$	5.85		142,382		3.60		268

			433,028		4.12	$	1,735

As of June 30, 2014, all outstanding options were fully vested and exercisable. There were no options granted, exercised, forfeited, or expired during the year ended December 31, 2013, or the six months ended June 30, 2014.

Compensation Expense

Stock compensation expense recognized during the three and six months ended June 30, 2014 and 2013, and unrecognized compensation expense as of June 30, 2014, were as follows:


	Three months ended June 30,				Six months ended June 30,				Unrecognized Compensation Cost as of June 30,
	2014		2013		2014		2013		2014
Compensation expense
RSUs	$	71	$	50	$	2	$	18	$	675
Options		—		7		142		100		—

Total	$	71	$	57	$	144	$	118	$	675

We expect to recognize the remaining compensation expense over each grant’s vesting period. The remaining weighted average vesting period of these RSUs as of June 30, 2014, is 2.59 years.