NOTE 6 - STOCK INCENTIVE PLAN

9 Months Ended

Dec. 31, 2011

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 6 - STOCK INCENTIVE PLAN

The Company's 2006 Stock Incentive Plan (the "Plan"), which is shareholder-approved, permits the grant of share options to its employees and board members for up to a maximum aggregate of 12.0 million shares of common stock. In addition, as of the first business day of each calendar year in the period 2007 through 2015, the maximum aggregate number of shares shall be increased by a number equal to one percent of the number of shares of common stock of the Company outstanding on December 31 of the immediately preceding calendar year. Accordingly, as of December 31, 2011, the maximum aggregate number of shares under the Plan was 21.0 million. The Company believes that such awards better align the interests of its employees with those of its shareholders. In accordance with the Plan, incentive stock options, nonqualified stock options, and performance based compensation awards may not be granted at less than 100 percent of the estimated fair market value of the common stock on the date of grant. Incentive stock options granted to a person owning more than 10 percent of the voting power of all classes of stock of the Company may not be issued at less than 110 percent of the fair market value of the stock on the date of grant. Option awards generally vest based on 3 years of continuous service (1/3 of the shares vest on the twelve month anniversary of the grant date, and an additional 1/12 of the shares vest on each subsequent fiscal quarter-end of the Company following such twelve month anniversary). Certain option awards provide for accelerated vesting if there is a change of control, as defined. The option awards have 7-year contractual terms.

When the measurement date is certain, the fair value of each option grant is estimated on the date of grant using the Black-Scholes valuation model. Since there is limited historical data with respect to both pre-vesting forfeiture and post-vesting termination, the expected life of the options was determined utilizing the simplified method, whereby the expected term is calculated by taking the sum of the vesting term plus the original contractual term and dividing that quantity by two.

The Company recorded $0 and $3.4 of compensation expense relative to stock options during the three months ended December 31, 2011 and 2010, respectively, and $0 and $30.4 during the nine months ended December 31, 2011 and 2010, respectively. No options were exercised during the three and nine months ended December 31, 2011 and 2010. A summary of stock option activity for the nine months ended December 31, 2011 is presented as follows.

	Shares			Weighted-  average  exercise  price		Weighted-  average  grant date  fair value		Weighted-  average  remaining  contractual  term  (years)		Aggregate  intrinsic  value
Outstanding, March 31, 2011		8,370		$	0.18
Granted		-		$	-	$	-
Exercised		-		$	-
Forfeited or expired		(115	)	$	0.25
Outstanding, December 31, 2011		8,255		$	0.18			2.9	$	-
Exercisable at December 31, 2011		8,255		$	0.18			2.9	$	-

All outstanding options were fully vested as of December 31and March 31, 2011.