BUYOUT OF EMPLOYEE STOCK OPTIONS - Note 8

12 Months Ended

Mar. 31, 2012

Notes to Financial Statements

BUYOUT OF EMPLOYEE STOCK OPTIONS - Note 8

8. BUYOUT OF STOCK OPTIONS

In accordance with existing buyout provisions of the Company's 1996 Stock Plan, in January 2012, the Company's board of directors approved the purchase of stock options which were expiring in February 2012. The Company purchased the stock options at an amount equal to the average closing price of a share of the Company's stock as reported on the NASDAQ Capital Market for the five trading days ending prior to the purchase date ("Purchase Price") less the exercise price of the stock option, multiplied by the number of shares subject to the unexercised portion of the option. The following table provides information with respect to the buyout of stock options during the three month period ended March 31, 2012:

	Aggregate Amounts						Weighted Average Per Share Amount
	Total Number
	of Shares
	Subject to		Purchase				Exercise		Purchase
	Purchased		Price of		Purchase		Price		Price of		Purchase
	Options		Options		Premium (1)		of Option		Options		Premium (1)
January 1 - January 31, 2012	75,000	$	237,750	$	103,500	$	1.79	$	3.17	$	1.38
February 1 - February 28, 2012	-		-		-		-		-		-
March 1 - March 31, 2012	-		-		-		-		-		-
Total	75,000	$	237,750	$	103,500	$	1.79	$	3.17	$	1.38

(1) The purchase premium is calculated as the difference between (a) the Purchase Price of the stock option and (b) the exercise price of the stock option.