(6)

Stock-Based Compensation. On December 27, 2011, the Company’s stockholders approved the 2011 Equity Incentive Plan (“2011 Plan”). In May 2016, the Company increased the total number of shares available to be awarded from 105,000 shares (adjusted for the one-for-ten reverse stock split) to 210,000 shares. Options, restricted stock, performance share awards and bonus share awards in lieu of obligations may be issued under the 2011 Plan. Both incentive stock options and nonqualified stock options can be granted under the 2011 Plan. The exercise price of the stock options cannot be less than the fair market value of the common stock on the date of grant. Options must be exercised within ten years of the date of grant.

As of March 31, 2017, only common stock has been issued as compensation to directors for services rendered under this plan. There were no shares of common stock issued during the period ended March 31, 2017. A total of 48,681 shares of common stock (adjusted for one-for-ten reverse stock split) were issued during the period ended March 31, 2016. A total of $211,000 of compensation was recorded during the period ended March 31, 2016. Subsequently, $200,000 (46,296 shares) was reclassified to other liabilities (see Note 13). At March 31, 2017, a total of 145,861 (adjusted for one-for-ten reverse stock split) shares remain available for grant.