Stock Options and Restricted Stock Awards

6 Months Ended

Sep. 30, 2014

Stock Options and Restricted Stock Awards [Abstract]

Stock Options and Restricted Stock Awards

13. Stock Options and Restricted Stock Awards

Stock Options

The Company granted options to purchase 82,537 and 272,000 shares of common stock during the six months ended September 30, 2014 and 2013, respectively. 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,
	2014			2013
Weighted average risk free interest rate		1.75	%		1.94	%
Weighted average expected holding period (years)		5.01			5.96
Weighted average expected volatility		46.02	%		48.52	%
Weighted average expected dividend yield		-			-
Weighted average fair value of options granted	$	9.65		$	4.42

A summary of stock option transactions for the six months ended September 30, 2014 follows:

	Number of Shares		Weighted Average Exercise Price
Outstanding at March 31, 2014	1,426,968		$	9.21
Granted	82,537		$	22.99
Exercised	(39,001	)	$	13.69
Cancelled	(8,250	)	$	10.71
Outstanding at September 30, 2014	1,462,254		$	9.86

At September 30, 2014, options to purchase 998,352 shares of common stock were exercisable at the weighted average exercise price of $9.05.

A summary of changes in the status of non-vested stock options during the six months ended September 30, 2014 is presented below:

	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested at March 31, 2014	490,702		$	4.39
Granted	82,537		$	9.65
Vested	(109,337	)	$	5.00
Cancelled	-		$	-
Non-vested at September 30, 2014	463,902		$	5.18

At September 30, 2014, there was $1,993,000 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 approximately 1.6 years.

Restricted Stock

During the six months ended September 30, 2014, the Company granted 95,645 shares of restricted stock with an estimated grant date fair value of $2,316,000, which is based on the closing market price on the date of grant. During the six months ended September 30, 2013, the Company granted 138,000 shares of restricted stock with an estimated grant date fair value of $1,286,000, which is based on the closing market price on the date of grant. These awards generally vest in three equal installments beginning each anniversary from the grant date, subject to continued employment. The fair value related to the awards of restricted stock is recognized as compensation expense over the vesting period.

A summary of changes in the status of non-vested restricted stock during the six months ended September 30, 2014 is presented below:

	Number of Shares		Weighted Average Grant Date Fair Value
Non-vested restricted stock at March 31, 2014	138,000		$	9.32
Restricted stock granted	95,645		$	24.21
Restricted stock vested	(50,402	)	$	10.51
Restricted stock cancelled	-		$	-
Non-vested restricted stock at September 30, 2014	183,243		$	16.77

As of September 30, 2014, there was $2,879,000 of unrecognized compensation expense related to awards of the restricted stock, which will be recognized over the remaining vesting period of approximately 2.5 years.