2. Stock Option Plan (Tables)

9 Months Ended

Sep. 30, 2016

A summary of activity in the stock option plan for the nine months ended September 30, 2016 follows (shares in thousands):

		Weighted-
		Average
	Number	Exercise
	of Shares	Price

Outstanding as of beginning of the period	1,470	$1.53
Granted	452	0.85
Exercised	-	-
Forfeited or expired	(182)	6.59
Outstanding as of end of the period	1,740	0.82

Exercisable as of end of the period	1,215	$0.87

Schedule of Stock Options Valuation Assumptions

The weighted average values of employee stock options granted under the stock option plan, as well as the weighted average assumptions used in calculating these values during the first nine months of 2016, were based on estimates as of the date of grant as follows:

Risk-free interest rate	0.98%
Dividend yield	0%
Volatility	235%
Expected life	3.5 years