XML 38 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTE 16 - STOCK-BASED COMPENSATION
 12 Months Ended
Mar. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 16 – STOCK-BASED COMPENSATION

 On April 1, 2009 the Company adopted ASC 718, “Compensation-Stock Compensation” (previously referred to as SFAS No. 123 (revised 2004), Share Based Payment).  ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values.  As of March 31, 2011, we had granted 78,820 shares of Common Stock and 1,413,000 stock options under our Stock Plan.  All of these grants occurred on or before the fiscal year ended March 31, 2010.  The exercise price of the options, which vest immediately, was $1.00 per share; the options will expire on May 13, 2014.  No options were granted during the fiscal year ended March 31, 2011.  In fiscal year ended March 31, 2012, 1,370,450 stock options (the “2012 Options”) were granted.  The exercise price of the 2012 Options, which vest immediately, was $0.56 per share.  These options will expire on June 27, 2016.  The aggregate fair value of the underlying stock on the grant date was $39,410 and the fair value of the stock options on the grant dates was $90,997 and $235,267, respectively.  As of March 31, 2012, under the 2008 Omnibus Plan, 2,783,450 stock options and 78,820 shares of common stock have been awarded and an aggregate of 116,030 shares of common stock remain available for future grants of options or stock awards.

The fair value of stock option awards is estimated on the date of grant using a Black-Scholes Pricing Model with the following assumptions for options awarded as of March 31, 2012:

Expected life of options
 
Granted in 2009
 
Granted in June 2011 quarter
   
5 years
 
5 years
Vested options
   
100%
     
100%
 
Risk free interest rate
   
1.98%
     
4.10%
 
Expected volatility
   
35.35%
     
83.37%
 
Expected dividend yield
 
Nil
 
Nil

The volatility estimate was derived using historical data for the IGC stock.