7. STOCK-BASED COMPENSATION PLAN

3 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7. STOCK-BASED COMPENSATION PLAN

a)  Stock Options

On July 28, 2009, the Company’s board of directors (the “Board of Directors”) adopted the 2009 Stock Incentive Plan (the “Stock Plan”). The Stock Plan provides for equity‑based awards in the form of incentive stock options and non-statutory options, restricted shares, stock appreciation rights and restricted stock units. Awards are made to selected employees, directors and consultants to promote stock ownership among award recipients, encourage their focus on strategic long-range corporate objectives, and attract and retain exceptionally qualified personnel. The exercise price of an option is determined at the date of grant and is based on the closing price of the Company’s common stock on the stock exchange or quotation system on which the common stock is listed or traded on the day of grant. Unless otherwise provided for, the options are exercisable only during the term of engagement of the employee, officer or consultant or during the period of service as a director of the Company. The Stock Plan became effective as of June 10, 2009 and was approved by the Company’s stockholders on January 14, 2010.

On March 24, 2016, the stockholders approved an amendment to the Stock Plan to increase the number of shares of common stock issuable under the plan to three million shares.

A summary of the activity in the Stock Plan during the three months ended June 30, 2016 was as follows:

	Three months ended June 30, 2016
	Options			WeightedAverageExercise Price (US$)
Outstanding at March 31, 2016		1,915,458		$	5.40
Granted		—			—
Exercised		—			—
Forfeited		(3,333	)		3.44
Outstanding at end of period		1,912,125		$	5.41

At June 30, 2016, the total number of shares of common stock issued in connection with the exercise of options since the inception of the Stock Plan was 171,927 and the total number of shares of common stock issued in connection with the vesting of restricted stock awards was 4,268.

A summary of the options outstanding and exercisable at June 30, 2016 was as follows:

		Options Outstanding and Expected to Vest				Options Exercisable
Range of Exercise Prices US$		Number Outstanding		Weighted AverageRemaining Contractual Life		Number Exercisable		Weighted AverageRemaining Contractual Life
$	3.44— 4.99		303,404		2.2		191,742		2.2
$	5.00— 7.50		1,603,721		4.8		1,185,125		4.9
$	7.51— 20.00		5,000		0.5		5,000		0.5
			1,912,125		4.4		1,381,867		4.5

The weighted average exercise price of options exercisable at June 30, 2016 was $5.41 per share.

The options have been valued separately using the Black‑Scholes methodology. The options under the Stock Plan generally vest over a three-year period in equal annual amounts and expire five years after the issuance date.

The Company recorded stock compensation cost of $175 and $607 for the three months ended June 30, 2016 and 2015, respectively. This expense was recorded in the employee related functional classification.

Compensation expense has been determined based on the fair value at the grant date for options granted in the current fiscal year. The future compensation expense to be recognized for unvested option grants at June 30, 2016 was $813, which is to be recognized over the next three years.

b)  2009 Employee Stock Purchase Plan

The Board of Directors approved an employee stock purchase plan that was implemented on January 1, 2009 and approved by the Company’s stockholders on November 4, 2009 (the “ESPP”).  The offering price per common share and number of common shares purchased for the periods ended June 30, 2016 and 2015 are as follows:

	Three Months Ended June 30,
	2016		2015
Offering Price per Common Share	$	2.28	$	6.03
Common Shares Purchased		18,187		9,749