Stock-Based Compensation

12 Months Ended

Mar. 31, 2015

Notes

Stock-Based Compensation

13.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, our 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, we 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. A similar provision is not included in the 2003 Plan. Normally, options granted expire ten years from the grant date. As of September 30, 2013, all Plans and shares not granted expired. As of March 31, 2015 and 2014, there are no other equity incentive plans in place for the future issuance of our common stock.

Activity under the Plans for the year ended March 31, 2015 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, 2014	2,615,750	$0.66
Granted	-	-
Exercised	-	-
Cancelled or forfeited	(440,000)	2.170
Options outstanding as of March 31, 2015	2,175,750	0.36	5.47	$-
Options exercisable as of March 31, 2015	1,837,625	0.42	4.93	$-
Options vested or expected to vest as of March 31, 2015	2,175,750	0.36	5.47	$-

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 31, 2015 of $0.0365 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, 2014. There were no stock options exercised under the Plan for the fiscal years ended March 31, 2015 and 2014. The total fair value of stock options that vested during the fiscal years ended March 31, 2015 and 2014 was $11,000 and $27,000, respectively.

At March 31, 2015 and 2014, there were no shares remaining to be granted under the 1996 Stock Option Plan and the 2003 Stock Option Plan.

For the fiscal years ended March 31, 2015 and 2014, we recorded stock-based compensation expense for options of approximately $11,000 and $37,000, respectively. As of March 31, 2015, we had approximately $14,000 of unrecognized compensation cost related to stock options that is expected to be recognized as expense over a weighted-average period of 1.42 years.