Stock Options

12 Months Ended

Mar. 31, 2014

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

Stock Options

12.  Stock Options

In September 2009, the Company adopted the 2009 Employee Incentive Stock Plan (the "2009 Plan"). The 2009 Plan provides for the award of stock options up to 200,000 shares and includes option awards as well as stock awards. Option awards are granted with the restriction of requiring payment for the shares. Stock awards are granted without restrictions and without payment by the recipient. Neither option awards nor stock awards may exceed 25,000 shares granted to any one individual in any fiscal year. Stock options may be an incentive stock option or a nonqualified stock option. Options to purchase common stock under the plan are granted at the fair market value of the common stock at the date of grant, become exercisable to the extent of 25% of the shares optioned on each of four anniversaries of the date of grant, expire ten years from the date of grant and are subject to forfeiture if employment terminates. The 2009 Plan expires ten years from the date of adoption.

According to the Company's employee stock incentive plan, new shares will be issued upon the exercise of stock options and the Company can repurchase shares exercised under the plan. The plan also provides for the granting of stock awards. No stock awards were granted during fiscal 2014, 2013 and 2012.

The Company recognized compensation expense of $152,448, $138,303 and $120,124 in general and administrative expense in the Consolidated Statements of Operations for fiscal 2014, 2013 and 2012, respectively. The total cost related to non-vested awards not yet recognized at March 31, 2014 totals $125,444, which is expected to be recognized over a weighted average of 2.2 years.

The fair value of each stock option is estimated on the date of grant using the Binomial valuation model. Expected volatilities are based on historical volatility of the Company's stock over the contractual term of 120 months and other factors. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. As the Company has never declared dividends, no dividend yield is used in the calculation. Actual value realized, if any, is dependent on the future performance of the Company's common stock and overall stock market conditions. There is no assurance the value realized by an optionee will be at or near the value estimated by the Binomial model.

During the year ended March 31, 2014, the Compensation Committee of the Board of Directors approved and the Company granted 35,000 stock options to officers and employees of the Company exercisable at $5.98 per share. During the year ended March 31, 2013, no stock options were granted. During the year ended March 31, 2012, 40,000 stock options were approved and exercisable at $6.80 per share. These options are exercisable at a price not less than the fair market value of the stock at the date of grant, have an exercise period of ten years and generally vest over four years.

Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted in fiscal 2014, 2013 and 2012.  All such amounts represent the weighted average amounts for each period.

	For the year ended March 31,
	2014			2013		2012
Grant-date fair value	$	4.75			-	$	5.69
Volatility factor		77.01	%		-		85.92	%
Dividend yield		-			-		-
Risk-free interest rate		1.74	%		-		1.49	%
Expected term (in years)		10			-		7.25

No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history for these types of awards.  There were no stock options forfeited or expired during the year ended March 31, 2014, 2013 and 2012.

The following table is a summary of activity of stock options for the years ended March 31, 2014, 2013 and 2012:

	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Aggregate Average Remaining Contract Life in Years		Intrinsic Value
Outstanding at March 31, 2011		53,750		$	5.69		7.33	$	401,200
Granted		40,000			6.80
Exercised		(10,000	)		4.00
Forfeited or Expired		-			-
Outstanding at March 31, 2012		83,750		$	6.42		8.65	$	127,363
Granted		-			-
Exercised		(3,750	)		4.35
Forfeited or Expired		-			-
Outstanding at March 31, 2013		80,000		$	6.52		8.03	$	-
Granted		35,000			5.98
Exercised		(1,400	)		6.29
Forfeited or Expired		-			-
Outstanding at March 31, 2014		113,600		$	6.35		7.66	$	154,062
Vested at March 31, 2014		48,600		$	6.46		6.92	$	60,537
Exercisable at March 31, 2014		48,600		$	6.46		6.92	$	60,537

Other information pertaining to option activity was as follows during the year ended March 31:

	2014		2013		2012
Weighted average grant-date fair value of stock options granted (per share)	$	4.75	$	-	$	5.69
Total fair value of options vested	$	261,373	$	160,125	$	59,875
Total intrinsic value of options exercised	$	6,244	$	3,138	$	38,600

The following table summarizes information about options outstanding at March 31, 2014:

Range of Exercise Prices		Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contract Life in Years		Aggregate Intrinsic Value
$	5.98 – 6.25		45,000	$	6.00
	6.26 – 6.50		28,600		6.29
	6.51 – 6.80		40,000		6.80
$	5.98 – 6.80		113,600	$	6.35		7.66	$	154,062

Outstanding options at March 31, 2014 expire between August 2020 and April 2023 and have exercise prices ranging from $5.98 to $6.80.