Stock Option Plans

9 Months Ended

Dec. 31, 2012

Equity [Abstract]

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

Stock Option Plans

Stock-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the vesting period. During the three month periods ended December 31, 2012 and 2011, stock-based compensation totaling $3,500 was recognized in each year based on the fair value of the stock options granted. During the nine months ended December 31, 2012 and 2011, stock-based compensation totaling $60,000 and $8,767, respectively, was recognized.

We estimate the fair value of stock options granted using the Black-Scholes option pricing model. Under this method, the average fair value of stock options granted by the Company during the nine months ended December 31, 2012 was $0.66 per share. In addition to the exercise price of the awards, certain weighted average assumptions were used to estimate the fair value of stock option grants as follows: expected volatility of 97.6%, expected dividend yield of 0%, risk-free interest rate of 0.73% and an expected option term of 5 years.

At December 31, 2012, outstanding options to purchase 1,240,000 shares of the Company’s common stock are fully vested. In addition, certain option grants contain disposition restrictions which prohibit the sale of 50% of the shares acquired by exercising the awarded options until the first anniversary of the grant date and the remaining 50% of the shares acquired by exercising the awarded options until the second anniversary of the grant date. As of December 31, 2012, the fair value of unamortized stock-based compensation expense related to unvested stock options was approximately $15,033, which is expected to be recognized over a remaining vesting period of three years.

The following table summarizes information about stock option activity for the nine months ended December 31, 2012:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
Outstanding at March 31, 2012		1,291,000		$	2.10		5.3 years
Granted		75,000		$	1.20		10 years
Expired		(106,000	)	$	1.80		-
Outstanding at December 31, 2012		1,260,000		$	2.09		5.3 years	$	-
Exercisable at December 31, 2012		1,240,000		$	2.10		5.3 years	$	-

There were no outstanding options which were exercisable and in-the-money as of December 31, 2012 resulting in no intrinsic value. Aggregate intrinsic value represents the total pretax intrinsic value, based on options with exercise prices less than the Company’s closing price of $0.50 as of December 31, 2012, which would have been recognized by the option holders had these option holders exercised their options as of that date.