18. Stock Options

In January 1994, the Company adopted the 1994 Stock Option Plan (the "1994 Plan"), under which it was authorized to issue non-qualified stock options and incentive stock options to key employees, directors and consultants. After a number of shareholder-approved increases to this plan, at March 31, 2002 the aggregate number of stock options approved was 960,000 shares of the Company's common stock. The term and vesting period of options granted is determined by a committee of the Board of Directors with a term not to exceed ten years. At the Company's Annual Meeting of Shareholders held on November 8, 2002, the 1994 Plan was amended to increase the authorized number of shares issued to 1,155,000. As of March 31, 2012 and 2011, options to purchase 223,750 and 364,100 shares of common stock, respectively, were outstanding under the 1994 Plan and no options were available for grant.

At the Company's Annual Meeting of Shareholders held on December 17, 2003, the shareholders approved the Company's 2003 Long-Term Incentive Plan ("Incentive Plan") which had been adopted by the Company's Board of Directors on October 31, 2003. Under the Incentive Plan, a total of 1,200,000 shares of the Company's common stock were reserved for grants of Incentive Awards and all of the Company's employees are eligible to participate. The 2003 Incentive Plan will terminate on October 31, 2013, unless terminated earlier by the Company's Board of Directors. As of March 31, 2012 and 2011, options to purchase 1,035,534 and 1,038,984 shares of common stock, respectively, were outstanding under the Incentive Plan. As of March 31, 2012 no options were available for grant and options to purchase 112,600 shares of common stock were available for grant as of March 31, 2011. In January 2011, this Incentive Plan was replaced and the Company will not make any further grants of awards under this plan.

In November 2004, the Company's shareholders approved the 2004 Non-Employee Director Stock Option Plan (the "2004 Plan") which provides for the granting of options to non-employee directors. At the Company's Annual Meeting of Shareholders held on February 25, 2010, the Company's shareholders approved an amendment to the 2004 Plan that increased the number of shares of common stock reserved for grant under the 2004 Plan from 175,000 to 275,000. As of March 31, 2012 and 2011, options to purchase 203,000 and 188,000 shares of common stock, respectively, were issued, and 72,000 and 87,000 shares of common stock were available for grant.

In January 2011, the Company's shareholders approved the 2010 Incentive Award Plan (the" 2010 Plan") which replaced the 2003 Long-term Incentive Plan. Under the 2010 Plan, a total of 750,000 shares of the Company's common stock were reserved for grants of incentive awards and all of the Company's employees are eligible to participate. No awards were issued under the 2010 Plan as of March 31, 2012 and 2011.

The shares of common stock issued upon exercise of a previously granted stock option are considered new issuances from shares reserved for issuance upon adoption of the various plans. The Company requires that the option holders provide a written notice of exercise to the stock plan administrator and payment for the shares prior to issuance of the shares.

A summary of stock option transactions follows:

	Number of Shares			Weighted Average Exercise Price

Outstanding at March 31, 2009		1,731,084		$	8.32
Granted		12,000		$	4.76
Exercised		(64,000	)	$	2.40
Cancelled		(50,750	)	$	10.69
Outstanding at March 31, 2010		1,628,334		$	8.45
Granted		18,000		$	9.61
Exercised		(52,250	)	$	3.83
Cancelled		(3,000	)	$	11.00
Outstanding at March 31, 2011		1,591,084		$	8.61
Granted		15,000		$	10.04
Exercised		(95,550	)	$	3.36
Cancelled		(48,250	)	$	3.15
Outstanding at March 31, 2012		1,462,284		$	9.15

Based on the market value of the Company's common stock at March 31, 2012, 2011 and 2010, the pre-tax intrinsic value of options exercised was $598,000, $530,000 and $262,000 respectively.

The followings table summarizes information about the options outstanding at March 31, 2012:

	Options Outstanding								Options Exercisable
Range of Exercise price	Shares		Weighted Average Exercise Price		Weighted Average Remaining Life In Years		Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value
$1.800 to $3.600		128,750	$	2.28		0.86	$	945,025		128,750	$	2.28	$	945,025
$4.170 to $6.345		175,000		5.86		3.90		658,000		174,000		5.86		654,240
$6.620 to $9.270		378,200		8.69		2.78		351,726		371,200		8.72		334,080
$9.900 to $11.750		361,334		10.19		3.8		-		361,334		10.19		-
$11.900 to $13.800		407,000		12.07		4.47		-		403,000		12.06		-
$14.500 to $15.060		12,000	$	14.67		6.83		-		9,000	$	14.59		-
		1,462,284					$	1,954,751		1,447,284			$	1,933,345

The aggregate intrinsic values in the above table represent the pre-tax value of all in-the-money options if all such options had been exercised on March 31, 2012 based on the Company's closing stock price of $9.62 as of that date.

Options to purchase 1,447,284, 1,576,084 and 1,587,998 shares of common stock were exercisable as of March 31, 2012, 2011 and 2010, respectively. The weighted average exercise price of options exercisable was $9.14, $8.61 and $8.50 as of March 31, 2012, 2011 and 2010, respectively.

A summary of changes in the status of non-vested stock options during the fiscal year ended March 31, 2012 is presented below.

	Number of Shares			Weighted Average Grant Date Fair Value
Non-vested at March 31, 2011		15,000		$	3.41
Granted		15,000		$	4.21
Vested		(15,000	)	$	3.44
Non-vested at March 31, 2012		15,000		$	4.18

Effective April 1, 2006, the Company began using the modified prospective application method of transition for all its stock-based compensation plans. The Company did not modify the terms of any previously granted options in anticipation of the adoption of this guidance. At March 31, 2012, there was $43,000 of total unrecognized compensation expense from stock-based compensation granted under the plans, which is related to non-vested shares. The compensation expense is expected to be recognized over a weighted average vesting period of 0.9 years.