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Note 3. Stock-Based Compensation
 9 Months Ended
Dec. 31, 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
   
2,117,646
     
—
     
—
 
Forfeited
   
—
     
—
     
—
 
Outstanding at December 31, 2011
   
825,882
   
$
0.24
     
6.90
 
Exercisable at December 31, 2011
   
825,882
   
$
0.24
     
6.90
 

On October 05, 2011, director Herbert Whitney gave notice to the Company of his intent to exercise 200,000 of the options granted to him in 2009, in a cashless exercise transaction.  This cashless option exercise transaction resulted in Mr. Whitney surrendering 75,555 shares; determined by the stated exercise amount of $34,000 (exercise per share price of $0.17 for 200,000 of the options granted to him in 2009), divided by the value of the Company’s common stock share price on October 05, 2011 of $0.45, the date of exercise.  After surrendering the 75,555 shares, Mr. Whitney received 124,445 common shares.  The Company did not record any expenses related to this event.

On November 17, 2011, director Herbert Whitney gave notice to the Company of his intent to exercise 200,000 of the options granted to him in 2009, in a cashless exercise transaction.  This cashless option exercise transaction resulted in Mr. Whitney surrendering 77,273 shares; determined by the stated exercise amount of $34,000 (exercise per share price of $0.17 for 200,000 of the options granted to him in 2009), divided by the value of the Company’s common stock share price on November 17, 2011 of $0.44, the date of exercise.  After surrendering the 77,273 shares, Mr. Whitney received 122,727 common shares.  The Company did not record any expenses related to this event.

On December 21, 2011, former director Mathijs von Houweninge gave notice to the Company of his intent to exercise 705,882 of the options granted to him in 2009, in a cashless exercise transaction.  This cashless option exercise transaction resulted in Mr. Houweninge surrendering 285,714 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 December 21, 2011 of $0.42, the date of exercise.  After surrendering the 285,714 shares, Mr. Houweninge received 420,168 common shares.  The Company did not record any expenses related to this event.

On December 22, 2011, director Herbert Whitney gave notice to the Company of his intent to exercise 305,882 of the options granted to him in 2009, in a cashless exercise transaction.  This cashless option exercise transaction resulted in Mr. Whitney surrendering 123,810 shares; determined by the stated exercise amount of $52,000 (exercise per share price of $0.17 for 305,882 of the options granted to him in 2009), divided by the value of the Company’s common stock share price on December 22, 2011 of $0.42, the date of exercise.  After surrendering the 123,810 shares, Mr. Whitney received 182,072 common shares.  The Company did not record any expenses related to this event.

During the three-month and nine-month periods ended December 31, 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 nine-month periods ended December 31, 2010, we did incur $0 and $241,349, respectively.

Net income for the three-month and nine-month periods ended December 31, 2011 included $124,388 and $363,973, respectively of stock-based compensation costs for management.  During the three-month and nine-month periods ended December 31, 2010, we expensed $107,784 and $299,928, 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.

On December 1, 2011 the Board of Directors of the Company amended certain restricted share grants previously granted to management in 2008, 2009 and 2010 wherein the vesting dates of these grants were changed to be January 1, 2015.  This vesting amendment, in effect, increased the number of periods required to expense these non-cash transactions.

As of December 31, 2011, there was approximately $150,500 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 thirty-six months.

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 $60,854, as of December 31, 2010 for these options, with no expense recorded during the nine-month period ended December 31, 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 nine-month periods ended December 31, 2011 includes expense in the amount of $3,025 and $10,438 respectively for these shares.  Net income for the three-month and nine-month periods ended December 31, 2010 includes expense in the amount of approximately $3,350 and $7,250, respectively for these shares.  These expenses are included in general and administrative expenses in the accompanying consolidated statement of operations.