STOCK OPTIONS (Tables)

12 Months Ended

Dec. 31, 2015

Stock Options Tables

Assumption used for stock option granted

The assumptions used principally for options granted to employees in the years ended December 31, 2015 and 2014 were as follows:

	2015		2014
Risk-free interest rate %		1.46 - 1.90		1.45 - 1.90
Expected dividend yield		—		—
Expected term in years		5 - 5.5		4.5 - 6.5
Forfeiture rate % (excluding fully vested options)		7.5 - 15		7.5 - 15
Expected volatility %		92 - 93		81 - 121

In December 2014, the Company issued stock options to purchase 475,000 shares of our Common Stock to its new CEO and CFO that contain certain stock price level attainment conditions that must be achieved before the stock options are permitted to vest. In calculating the compensation expense for these stock option grants, we utilize a binomial lattice-based valuation model. Assumptions utilized in the model, which are evaluated and revised, as necessary, to reflect market conditions and experience, were as follows:

	2014
Interest rate %		2
Weighted average interest rate		—
Dividend yield		—
Expected volatility		1.05
Weighted Average volatility		—
Expected life in years		6.5

Stock option activity

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January1, 2014		1,455,432		$	4.40		—		—
Granted		662,950			1.94		—		—
Forfeited or expired		(1,078,482	)		4.92		—		—
Outstanding at December 31, 2014		1,039,900		$	3.00	8.82 years			—
Granted		895,000			1.47		—		—
Forfeited or expired		(267,667	)		4.06		—		—
Outstanding at December 31, 2015		1,667,233		$	2.01	8.74 years		$	—
Exercisable at December 31, 2015		900,750		$	2.22	8.68 years		$	—