v2.4.0.6
Stock Option Plans
3 Months Ended
Jun. 30, 2012
Equity [Abstract]  
Shareholders' Equity and Share-based Payments [Text Block]

Stock Option Plans

 

Stock-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the vesting period. During the three months ended June 30 2012 and 2011, stock-based compensation totaling $53,000 and $1,767, respectively, was recognized based on the fair value of the stock options granted.

 

We estimate the fair value of stock options granted using the Black-Scholes option pricing model. Under this method, the average fair value of stock options granted by the Company during the three months ended June 30, 2012 was $0.66 per share. In addition to the exercise price of the awards, certain weighted average assumptions were used to estimate the fair value of stock option grants as follows: expected volatility of 97.6%, expected dividend yield of 0%, risk-free interest rate of 0.73% and an expected option term of 5 years.

  

At June 30, 2012, outstanding options to purchase 1,239,999 shares of the Company’s common stock are fully vested. In addition, certain option grants contain disposition restrictions which prohibit the sale of 50% of the shares acquired by exercising the awarded options until the first anniversary of the grant date and the remaining 50% of the shares acquired by exercising the awarded options until the second anniversary of the grant date. As of June 30, 2012, the fair value of unamortized stock-based compensation expense related to unvested stock options was approximately $22,033 which is expected to be recognized over a remaining vesting period of three years.

 

The following table summarizes information about stock option activity for the three months ended June 30, 2012:

 

                Weighted        
          Weighted     Average        
          Average     Remaining     Agregate  
          Exercise     Contractual     Intrinsic  
    Shares     Price     Term     Value  
Outstanding at March 31, 2012     1,291,000     $ 2.10       5.3 years          
Granted     75,000     $ 1.20       10 years          
Expired     (106,000 )   $ 1.80       -          
Outstanding at June 30, 2012     1,260,000     $ 2.09       5.8 years     $ 11,250  
                                 
Exercisable at June 30, 2012     1,239,999     $ 2.10       5.8 years     $ 8,917  

 

Aggregate intrinsic value represents the total pretax intrinsic value, based on options with exercise prices less than the Company’s closing price of $1.15 as of June 30, 2012, which would have been recognized by the option holders had these option holders exercised their options as of that date.