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Note 3. Stock-Based Compensation
6 Months Ended
Sep. 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 September 30, 2011
   
2,237,646
   
$
0.19
     
2.80
 
Exercisable at September 30, 2011
   
2,237,646
   
$
0.19
     
2.80
 

Net income for the three-month and six-month periods ended September 30, 2011 included $124,388 and $239,586, respectively of stock-based compensation costs for management.  During the three-month and six-month periods ended September 30, 2010, we expensed $97,702 and $192,114, respectively of stock-based compensation costs for management; all of these expenses are included in general and administrative expenses in the accompanying consolidated statements of operations.

As of September 30, 2011, there was approximately $275,000 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-four months.

During the three-month and six-month periods ended September 30, 2011, we did not incur or expense any stock-based compensation costs for directors, as no new grants were awarded.  However, during the three-month and six-month periods ended September 30, 2010, we did incur $0 and $241,348, respectively.

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.  The agreement required the Company to grant McGuire the option to purchase 100,000 shares of the Company’s restricted common stock at the exercise price of $0.50 per share, vesting on November 20, 2010, exercisable until November 20, 2015.  The Company recorded a fair value expense of $34,332, as of September 30, 2010 for these options, with no expense recorded during the six-month period ended September 30, 2011.

The agreement with McGuire also requires the Company to issue 2,500 shares monthly to McGuire of the Company’s restricted common stock. Net income for the three-month and six-month periods ended September 30, 2011 includes expense in the amount of $3,650 and $7,412 respectively for these shares.  Net income for the three-month and six-month periods ended September 30, 2010 includes expense in the amount of approximately $2,650 and $3,900, respectively for these shares.  These expenses are included in general and administrative expenses in the accompanying consolidated statement of operations.