14. Share-based Payments

Stock Options

The Company granted options to purchase 169,000 and 184,000 shares of common stock during the nine months ended December 31, 2017 and 2016, respectively. The cost associated with stock options is estimated using the Black-Scholes option-pricing model. This model requires the input of subjective assumptions including the expected volatility of the underlying stock and the expected holding period of the option. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value.

The following assumptions were used to derive the weighted average fair value of the stock options granted:

	Nine Months Ended December 31,
	2017			2016
Weighted average risk free interest rate		1.91	%		1.38	%
Weighted average expected holding period (years)		5.82			5.84
Weighted average expected volatility		47.31	%		47.42	%
Weighted average expected dividend yield		-			-
Weighted average fair value of options granted	$	12.66		$	13.07

The following is a summary of stock option transactions:

	Number of Shares			Weighted Average Exercise Price
Outstanding at March 31, 2017		1,036,359		$	14.92
Granted		169,000		$	27.32
Exercised		(28,951	)	$	10.15
Forfeited		(5,967	)	$	28.55
Outstanding at December 31, 2017		1,170,441		$	16.76

At December 31, 2017, options to purchase 324,959 shares of common stock were unvested at the weighted average exercise price of $28.26.

At December 31, 2017, there was $3,361,000 of total unrecognized compensation expense related to unvested stock option awards. The compensation expense is expected to be recognized over a weighted average vesting period of approximately 1.9 years.

Restricted Stock Units (“RSUs”)

During the nine months ended December 31, 2017 and 2016, the Company granted 77,854 and 55,469 shares of RSUs, respectively, with an estimated grant date fair value of $2,157,000 and $1,574,000, respectively, which was based on the closing market price on the grant date.

The following is a summary of non-vested RSUs:

	Number of Shares			Weighted Average Grant Date Fair Value
Non-vested at March 31, 2017		126,277		$	28.26
Granted		77,854		$	27.70
Vested		(63,868	)	$	27.21
Forfeited		(1,434	)	$	28.37
Non-vested at December 31, 2017		138,829		$	28.43

At December 31, 2017, there was $3,164,000 of unrecognized compensation expense related to these awards, which will be recognized over the remaining vesting period of approximately 2.0 years.