Stock Plans And Stock-Based Compensation

6 Months Ended

Sep. 30, 2012

Notes

Stock Plans And Stock-Based Compensation

3.      STOCK PLANS AND STOCK-BASED COMPENSATION

In July 1998, shareholders of the Company approved the adoption of the 1998 Stock Option Plan (“1998 Plan”). The 1998 Plan was effective October 1, 1998 and expired on October 1, 2008.  Accordingly, no further option awards may be granted under the 1998 Plan; however, any awards granted prior to its expiration remain outstanding subject to their terms.

In July 2003, shareholders of the Company approved the adoption of the 2003 Stock Option Plan (“2003 Plan”). The 2003 Plan was effective July 2003 and will expire on the tenth anniversary of the effective date, unless terminated sooner by the Company’s Board of Directors (“Board”). Under the 2003 Plan, the Company may grant both incentive and non-qualified stock options to purchase up to 458,554 shares of its common stock to officers, directors and employees. Each option granted under the 2003 Plan has an exercise price equal to the fair market value of the Company’s common stock on the date of grant, a maximum term of ten years and a vesting period from zero to five years.  At September 30, 2012, there were options for 102,154 shares of the Company’s common stock available for future grant under the 2003 Plan.

The following table presents information on stock options outstanding for the period shown.

	Six Months Ended September 30, 2012
	Number of Shares			Weighted Average Exercise Price
Balance, beginning of period	440,500		$	8.87
Grants	-			-
Options exercised	-			-
Forfeited	-			-
Expired	(20,000	)		6.76
Balance, end of period	420,500		$	8.97

The following table presents information on stock options outstanding for the periods shown, less estimated forfeitures.

	Six Months Ended September 30, 2012		Six Months Ended September 30, 2011
Stock options fully vested and expected to vest:
Number		419,950		450,275
Weighted average exercise price	$	8.97	$	8.97
Aggregate intrinsic value (1)	$	-	$	-
Weighted average contractual term of options (years)		4.75		5.48
Stock options fully vested and currently exercisable:
Number		414,900		433,000
Weighted average exercise price	$	9.06	$	9.21
Aggregate intrinsic value (1)	$	-	$	-
Weighted average contractual term of options (years)		4.71		5.34
(1)  The aggregate intrinsic value of a stock options represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price) that would have been received by the option holders had all option holders exercised.  This amount changes based on changes in the market value of the Company’s common stock.

Stock-based compensation expense related to stock options for the six months ended September 30, 2012 and 2011 was $1,000 and $5,000, respectively. As of September 30, 2012, there was $4,000 of unrecognized compensation expense related to unvested stock options, which will be recognized over the remaining vesting periods of the underlying stock options through December 2014.

The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes based stock option valuation model. There were no stock options granted during the six months ended September 30, 2012.