Related Party Transactions

9 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

17. Related Party Transactions

Stock Repurchase Agreement

In December 2012, the Company entered into a stock repurchase agreement (the "Stock Repurchase Agreement") with Mel Marks, the Company's founder, a member of the Company's Board of Directors and consultant to the Company, and Melmarks Enterprises LLLP, a limited liability limited partnership controlled by Mr. Marks (the "Shareholders"), which, among other things, provides the Shareholders with the option to sell up to $300,000 of the Company's common stock held by the Shareholders (the "Shares"), on or prior to February 28, 2013, at a purchase price that is 10% below the average daily closing price per share of the Company's common stock for the five consecutive trading days immediately preceding the date of the notice of sale. In December 2012, the Company repurchased 19,120 shares at a total cost of approximately $100,000. See Note 18 – Subsequent Events – Stock Repurchase Agreement for additional information regarding this transaction.

Restricted stock

In connection with the employment agreement with Selwyn Joffe, the Company's Chairman, President and Chief Executive Officer, dated May 18, 2012, the Company granted 51,167 shares of fully vested restricted stock with a fair value of $331,000 in December 2012. The Company withheld 25,137 shares based upon the Company's closing stock price on the vesting date to settle Mr. Joffe's minimum statutory obligation for the applicable income and other employment taxes.  The Company then remitted cash to the appropriate taxing authorities. Total payment for this tax obligation to the taxing authorities was $163,000 and is reflected as a financing activity within the consolidated statements of cash flows. These net-share settlements had the effect of share repurchases by the Company as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to the Company. See Note 18 – Subsequent Events – Option Purchase Agreement for additional information regarding transactions with Mr. Joffe.