NOTE 13—SUBSEQUENT EVENT

Stock-Based Compensation

On April 27, 2015, an additional 2.3 million shares of Company common stock were authorized for issuance under the 2002 Plan.

Also on April 27, 2015, non-employee directors of the Company were granted non-qualified stock options to purchase a combined total of 657,489 shares of Company common stock, as annual compensation for serving on the Board. These options were granted at an exercise price of $2.27, the average closing market price of the Company’s stock for the trailing 12 months prior to grant date, and vest over a 12-month period.