Stock-Based Compensation

12 Months Ended

Mar. 31, 2013

Notes

Stock-Based Compensation

M.     Stock Based Compensation

AdvanSource’s 1996 Employee, Director and Consultants Stock Option Plan (the “1996 Plan”) was approved by AdvanSource’s Board of Directors and Stockholders in March 1996.  A total of 7,000,000 shares have been reserved for issuance under the Plan.  Under the terms of the Plan, the exercise price of Incentive Stock Options issued under the Plan must be equal to the fair market value of the common stock at the date of grant.  In the event that Non Qualified Options are granted under the Plan, the exercise price may be less than the fair market value of the common stock at the time of the grant (but not less than par value).  In October 2003, the Company’s shareholders approved the AdvanSource 2003 Stock Option Plan (the “2003 Plan”), which authorizes the issuance of 3,000,000 shares of common stock with terms similar to the 1996 Plan.  In January 2006, the Company filed Form S-8 with the Securities and Exchange Commission registering an additional 489,920 total shares of common stock in the 1996 Plan and 2003 Plan.  Total shares of common stock registered under the 1996 Plan and 2003 Plan (collectively, the “Plans”) are 10,489,920.  Substantially all of the stock options granted pursuant to the 1996 Plan provide for the acceleration of vesting of the shares of Common Stock subject to such options in connection with certain changes in control of the Company.  A similar provision is not included in the 2003 Plan.  In February 2008, the Company filed two Forms S-8 to register 360,000 shares of common stock in connection with previously granted stock options to two executives who received grants of unregistered shares under Rule 711 of NYSE Amex.  Normally, options granted expire ten years from the grant date.

Activity under the Plans for the year ended March 31, 2013 is as follows:

	Options Outstanding	Weighted-Average Exercise Price per Share	Weighted-Average Remaining Contractual Term in Years	Aggregate Intrinsic Value (in thousands)
Options outstanding as of April 1, 2012	2,130,119	$1.03
Granted	-	-
Exercised	-	-
Cancelled or forfeited	(285,619)	1.29
Options outstanding as of March 31, 2013	1,844,500	.99	5.36	$-
Options exercisable as of March 31, 2013	1,744,500	1.03	5.25	$-
Options vested or expected to vest as of March 31, 2013	1,844,500	.99	5.36	$-

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the closing price of the common stock on March 30, 2013 of $0.052 and the exercise price of each in-the-money option) that would have been received by the option holders had all option holders exercised their options on March 31, 2013.  There were 0 stock options exercised under the Plan for the fiscal years ended March 31, 2013 and March 31, 2012.  The total fair value of stock options that vested during the fiscal years ended March 31, 2013 and March 31, 2012 was $33,000 and $46,000, respectively.

At March 31, 2013, there were no shares remaining to be granted under the 1996 Stock Option Plan and 771,250 shares were available for grant under the 2003 Stock Option Plan.

For the fiscal years ended March 31, 2013 and March 31, 2012, the Company recorded stock-based compensation expense for options of approximately $33,000 and $44,000, respectively.  As of March 31, 2013, the Company has approximately $8,000 of unrecognized compensation cost related to stock options that is expected to be recognized as expense over a weighted-average period of .39 years.