Share-based Payments

6 Months Ended

Sep. 30, 2015

13. Share-based Payments

Stock Options

The Company granted options to purchase 110,122 and 82,537 shares of common stock during the six months ended September 30, 2015 and 2014, respectively. The cost associated with stock options is estimated using the Black-Scholes option-pricing model. This 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 assumptions used to derive the weighted average fair value of the stock options granted were:

	Six Months Ended September 30,
	2015			2014
Weighted average risk free interest rate		1.73	%		1.75	%
Weighted average expected holding period (years)		5.76			5.01
Weighted average expected volatility		46.84	%		46.02	%
Weighted average expected dividend yield		-			-
Weighted average fair value of options granted	$	14.13		$	9.65

The following is a summary of stock option transactions for the six months ended September 30, 2015:

	Number of Shares			Weighted Average Exercise Price
Outstanding at March 31, 2015		1,389,254		$	9.97
Granted		110,122		$	31.13
Exercised		(294,757	)	$	10.03
Cancelled		-		$	-
Outstanding at September 30, 2015		1,204,619		$	11.89

At September 30, 2015, options to purchase 906,082 shares of common stock were exercisable at the weighted average exercise price of $9.12.

At September 30, 2015, there was $2,547,000 of total unrecognized compensation expense related to unvested stock option awards. The compensation expense is expected to be recognized over a weighted average vesting period of approximately 1.7 years.

Restricted Stock

During the six months ended September 30, 2015 and 2014, the Company granted 39,900 and 95,645 shares of restricted stock, respectively, with an estimated grant date fair value of $1,242,000 and $2,316,000, respectively, which was based on the closing market price on the grant date.

The following is a summary of non-vested restricted stock for the six months ended September 30, 2015:

	Number of Shares			Weighted Average Grant Date Fair Value
Non-vested stock at March 31, 2015		181,443		$	16.84
Granted		39,900		$	31.13
Vested		(75,519	)	$	15.34
Cancelled		-		$	-
Non-vested stock at September 30, 2015		145,824		$	21.53

At September 30, 2015, there was $2,946,000 of unrecognized compensation expense related to awards of the restricted stock, which will be recognized over the remaining vesting period of approximately 1.8 years.