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Note 3. Stock-Based Compensation
 3 Months Ended
Jun. 30, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
3. 
STOCK-BASED COMPENSATION.

A summary of the status of our common stock options awards is presented in the table below.

   
Number of Common
Shares
   
Weighted-Average
Exercise Price
   
Weighted-Average
Remaining
Contractual
Term (Years)
 
Outstanding at March 31, 2011
   
2,943,528
   
$
0.18
     
2.69
 
Granted
   
—
     
—
     
—
 
Exercised
   
705,882
     
—
     
—
 
Forfeited
   
—
     
—
     
—
 
Outstanding at June 30, 2011
   
2,237,646
   
$
0.19
     
3.05
 
Exercisable at June 30, 2011
   
2,237,646
   
$
0.19
     
3.05
 

Net income for the three-month period ended June 30, 2011 included approximately $115,198 of stock-based compensation costs for management and approximately $3,762 of stock-based compensation costs for equity awards granted to non-employees for investor relations services, both of which are included in general and administrative expenses in the accompanying consolidated statements of operations.

During the three-month period ended June 30, 2010, we expensed approximately $94,442 of stock-based compensation costs for management and approximately $7,310 of stock-based compensation costs for equity awards granted to non-employees for investor relations services.

On May 19, 2010, the Company entered into an investor relations agreement with Malcolm McGuire & Associates, L.L.C. (“McGuire”) and amended the agreement on June 11, 2010.  These agreements require the Company to grant McGuire the option to purchase 100,000 shares of restricted common stock at an exercise price of $0.50 per share.  The options vested on November 20, 2010 and may be exercised by McGuire at any time after vesting date and prior to November 20, 2015.  Related to these options the Company recorded an expense of $60,854.  The agreement with McGuire also requires the Company, beginning in June 2010 and every month for a six month period, to issue 2,500 shares of the Company’s restricted common stock.  The initial six-month time period was allowed to extend.  For the three-month period ended June 30, 2011, McGuire received 7,500 shares of the Company’s restricted common stock, and the Company recorded an expense in the amount of approximately $3,762.  McGuire also received 5,000 additional shares of the Company’s common stock during and for the periods of July and August 2011 with an aggregate grant date fair value of $2,575.

On May 10, 2011, former director Christopher Wilson gave notice to the Company of his intent to exercise the 705,882 options granted to him in 2009, in a cashless exercise transaction.  This cashless option exercise transaction resulted in Mr. Wilson surrendering 196,722 shares; determined by the stated exercise amount of $120,000 (exercise per share price of $0.17 for the 705,882 options granted to him in 2009), divided by the value of the Company’s common stock share price on May 10, 2011 of $0.61, the date of exercise.  After surrendering the 196,722 shares, Mr. Wilson received 509,160 common shares.  The Company did not record any expenses related to this event.

On June 6, 2011, the Company granted 74,500 restrictive shares of common stock to each of its four members of management, 298,000 shares in aggregate, pursuant to the Company’s 2008 Incentive Plan.  The shares were valued at $0.60 per share as of the grant date.  The shares to management shall vest on January 1, 2015; only if the individual members of management are employed with the Company on the date of vesting.  For the three months ended June 30, 2011, we expensed $3,342 related to these grants.

As of June 30, 2011, there was approximately $399,000 of total unrecognized compensation costs related to unvested stock-based compensation for the restricted shares granted to management that is expected to be recognized over a weighted-average period of approximately twenty-two months.