Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION (Tables)

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2014

Black-Scholes Option Valuation Assumptions

On February 21, 2014, we awarded 10 year options to various employees for 500,000 shares. These options have an exercise price equal to the closing price of the stock on February 21, 2014, which was $12.26 and vest in 25% increments over a 4 year period. Compensation expense recognized during the three months and six months ended June 30, 2014, was approximately $277,000 and $400,000, respectively. The fair value of the options granted was calculated using the Black-Scholes option valuation model with the following assumptions:

Expected volatility	84%
Expected dividends	None
Expected term (in years)	6.25
Risk free interest rate	1.95%

Summary Of Status Of Stock Option Awards

A summary of the status of our stock option awards and warrants is presented below:

	Number of StockOptions & Warrants			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life

Outstanding at January 1, 2014		1,326,360		$	4.75
Granted		500,000			12.26
Exercised		(31,820	)		2.86
Expired		--			--
Cancelled		--			--
Forfeited		(20,000	)	$	2.82
Outstanding at June 30, 2014		1,774,540		$	6.92		7.1
Exercisable at June 30, 2014		662,068		$	4.53		5.9