"Stock-based compensation expense for the three and nine months ended December 31, 2008 includes $8,918 for stock appreciation rights of three former employees in lieu of cash severance. The value of such rights is recognized at fair value, remeasured at each reporting date and recorded as an accrued liability. Outstanding rights covered an aggregate of 437,500 shares with exercise prices ranging from $0.145 to $0.22 and a term ranging from 0.7 to 1.25 years."