Stock Options and Restricted Stock Awards

6 Months Ended

Sep. 30, 2013

Stock Options and Restricted Stock Awards [Abstract]

Stock Options and Restricted Stock Awards

13. Stock Options and Restricted Stock Awards

The Company granted options to purchase 272,000 and 6,000 shares of common stock during the six months ended September 30, 2013 and 2012, respectively, of which 266,000 were granted during the three months ended September 30 2013. The cost associated with stock options is estimated using the Black-Scholes option-pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions including the expected volatility of the underlying stock and the expected holding period of the option. These subjective assumptions are based on both historical and other information. Changes in the values assumed and used in the model can materially affect the estimate of fair value.

The table below summarizes the Black-Scholes option pricing model assumptions used to derive the weighted average fair value of the stock options granted during the periods noted.

	Six Months Ended
	September 30,
	2013			2012
Weighted average risk free interest rate		1.94	%		1.03	%
Weighted average expected holding period (years)		5.96			6.48
Weighted average expected volatility		48.52	%		42.86	%
Weighted average expected dividend yield		-			-
Weighted average fair value of options granted	$	4.42		$	3.04

A summary of stock option transactions for the six months ended September 30, 2013 follows:

	Number of Shares			Weighted Average Exercise Price
Outstanding at March 31, 2013		1,970,084		$	8.73
Granted		272,000		$	9.25
Exercised		-		$	-
Cancelled		(152,450	)	$	7.44
Outstanding at September 30, 2013		2,089,634		$	8.89

At September 30, 2013, options to purchase 1,515,933 shares of common stock were exercisable at the weighted average exercise price of $9.31.

A summary of changes in the status of non-vested stock options during the six months ended September 30, 2013 is presented below:

	Number of Shares			Weighted Average  Grant Date Fair Value
Non-vested at March 31, 2013		420,401		$	2.93
Granted		272,000		$	4.42
Vested		(6,000	)	$	3.98
Cancelled		(112,700	)	$	2.92
Non-vested at September 30, 2013		573,701		$	3.63

At September 30, 2013, there was $1,998,000 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 2.2 years.

The Company granted 138,000 shares of restricted stock to certain executives, on September 3, 2013, at the closing market price of $9.32 per share. These awards vest in three equal installments beginning each anniversary from the grant date, subject to continued employment. The fair value related to the restricted stock grant of $1,286,000 will be recognized as compensation expense over the vesting period.