15. Stock Option Plans

12 Months Ended

Mar. 31, 2012

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

15.                   Stock Option Plans

In May 2003, the Board of Directors adopted the 2003 Stock Option Plan (“the Plan”) which reserved for issuance options to purchase up to 250,000 shares of its Common Stock.  The stockholders approved the Plan at the November 2003 annual meeting.  The Plan, which has a term of ten years from the date of adoption, is administered by the Board of Directors or by a committee appointed by the Board of Directors. The selection of participants, allotment of shares, and other conditions related to the grant of options, to the extent not set forth in the Plan, are determined by the Board of Directors.  Options granted under the Plan are exercisable up to a period of 5 years from the date of grant at an exercise price which is not less than the fair market value of the common stock at the date of grant, except as to a stockholder owning 10% or more of the outstanding common stock of the Company, as to whom the exercise price must not be less than 110% of the fair market value of the common stock at the date of grant. Options are exercisable, on a cumulative basis, 20% at or after each of the first, second, and third anniversary of the grant and 40% after the fourth year anniversary.

In March 2006, the Board of Directors of the Company adopted the 2006 Stock Option Plan which reserves for issuance options to purchase up to 250,000 shares of its common stock and is similar to the 2003 Plan.  The stockholders approved this plan at the December 2006 annual meeting.

The fair value of each option awarded is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of the Company’s stock. The expected life of the options granted represents the period of time from date of grant to expiration (5 years). The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. The per share weighted-average fair value of stock options granted for the years ended March 31, 2012 and 2011 was $2.42 and $2.77, respectively, on the date of grant using the Black Scholes option-pricing model with the following assumptions:

Year	Dividend Yield			Risk-free Interest rate			Volatility			Life
2012		0.0	%		0.86%-1.08	%		36.07% - 36.63	%	5 years
2011		0.0	%		1.23%-2.31	%		39.84% - 41.15	%	5 years

A summary of the status of the Company’s stock option plans for the fiscal years ended March 31, 2012 and 2011 and changes during the years are presented below: (in number of options):

	Number of Options			Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding options at April 1, 2010		272,000		$	3.88
Options granted		55,000		$	7.26
Options exercised		(23,392	)	$	3.46
Options canceled/forfeited		(54,758	)	$	3.79
Outstanding options at March 31, 2011		248,850		$	4.69	2.5 years	$	735,889
Options granted		18,000		$	7.28
Options exercised		(38,000	)	$	3.28
Options canceled/forfeited		(27,750	)	$	5.04
Outstanding options at March 31, 2012		201,100		$	5.14	2.1 years	$	321,114
Vested Options:
March 31, 2012:		119,760		$	4.29	1.3 years	$	263,099
March 31, 2011:		125,090		$	3.72	1.6 years	$	464,974

Remaining options available for grant were 171,578 and 164,328 as of March 31, 2012 and 2011, respectively.

The total intrinsic value of options exercised during the years ended March 31, 2012 and 2011 was $127,154 and $118,621, respectively. Cash received from the exercise of stock options for the years ended March 31, 2012 and 2011 was $124,631 and $81,020, respectively.

For the years ended March 31, 2012 and 2011, the unamortized compensation expense for stock options was $164,686 and $225,580, respectively. Unamortized compensation expense is expected to be recognized over a weighted-average period of 3 years.

Additionally, at March 31, 2012 the Company has individual employment agreements with twelve individuals which provide for the grant of 43,500 stock options with a weighted average exercise of $4.76 per share.  These employee contracts have been approved by the directors, and were included as consideration for their employment but were not individually approved by shareholders. Since these options were granted under the Stock Option Plans, they are included in the 201,100 shares outstanding at March 31, 2012.

A summary of the Company’s non-vested shares as of March 31, 2012, and changes during the year ended March 31, 2012 is presented below:

Non-vested Shares	Shares			Weighted-Average Grant-Date Fair value
Non-vested at April 1, 2011		123,760		$	5.67
Granted		18,000		$	7.28
Vested		(42,920	)	$	4.78
Forfeited		(17,500	)	$	6.15
Non-vested at March 31, 2012		81,340		$	6.40

The compensation cost that has been charged was $89,079 and $102,505 for the fiscal years ended March 31, 2012 and 2011, respectively. The total income tax benefit recognized in the statement of operations for share-based compensation arrangements was $8,797 and $10,188 for the fiscal years ended March 31, 2012 and 2011, respectively, and relates to the compensation cost associated with non-qualified stock options