Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation

v2.4.0.6
Stock Based Compensation
12 Months Ended
Mar. 31, 2012
Stock Based Compensation [Abstract]  
Stock Based Compensation [Text Block]
Note 11.  Stock Based Compensation

The share amounts and share prices reflect a 1-for-5 reverse stock split effected by the Company on June 15, 2011.
A summary of stock option and warrant activity during the year ended March 31, 2012 is as follows:
 
               
Weighted
       
         
Weighted
   
Average
       
         
Average
   
Remaining
   
Aggregate
 
         
Exercise
   
Contractual
   
Intrinsic
 
   
Shares
   
Price
   
Term (in Years)
   
Value
 
Beginning outstanding
    154,938     $ 21.63              
Granted
    2,499     $ 3.43              
Expired
    (29,604 )   $ 30.38              
                             
Ending outstanding
    127,833     $ 19.24       5.87     $ -  
Ending vested and expected to vest
    127,764     $ 19.21       5.87     $ -  
Ending exercisable
    116,469     $ 20.12       5.73     $ -  

The aggregate intrinsic value of options and warrants outstanding at March 31, 2012 is calculated as the difference between the exercise price of the underlying options and the market price of our common stock as of March 31, 2012.

The weighted-average estimated grant date fair value, as defined by ASC Topic 718 for stock options granted during fiscal 2012 and 2011, was $3.43 and $2.90, per option, respectively.

The following table summarizes information with respect to stock options and warrants outstanding as of March 31, 2012:
 
                                     
Weighted
 
                   
Weighted
               
Average
 
             
Number
   
Average
   
Weighted
   
Number
   
Exercise
 
             
Outstanding
   
Remaining
   
Average
   
Exercisable
   
Price
 
   
Range of
   
As of
   
Contractual
   
Exercise
   
As of
   
As of
 
   
Exercise Prices
   
March 31,
   
Term
   
Price
   
March 31,
   
March 31,
 
             
2012
   
(in years)
         
2012
   
2012
 
  $
2.90
  $ 6.00       8,330       8.89     $ 4.30       5,831     $ 4.67  
   
6.25
    11.70       54,435       6.64       11.53       45,639       11.50  
   
17.80
    28.10       49,648       5.40       21.73       49,623       21.73  
   
30.56
    61.80       14,506       3.08       43.49       14,498       43.48  
   
61.94
    151.94       854       2.41       88.99       832       89.52  
   
152.21
    285.00       58       1.33       174.08       46       174.00  
   
286.72
    300.27       2       0.00       293.50       -       -  
                                                     
  $
2.90
  $ 300.27       127,833       5.87     $ 19.24       116,469     $ 20.12  

The weighted-average estimated grant date fair values per share, for rights granted under the Employee Stock Purchase Plan during fiscal 2011 was $2.75.  No shares were granted under the Employee Stock Purchase Plan during fiscal 2012.

The Company used the following valuation assumptions to estimate the fair value of options granted for the years ended March 31, 2012 and 2011, respectively:

STOCK OPTIONS:
 
2012
   
2011
 
Expected life (years)
  6.0     6.0  
Volatility
  155%     75%  
Risk-free interest rate
  1.04%     1.62%  
Dividend yield
  0%     0%  
 
ESPP awards were valued using the Black-Scholes model with expected volatility calculated using a six-month historical volatility.

ESPP:
 
2012
   
2011
 
Expected life (years)
  0.5     0.5  
Volatility
  55%     65%  
Risk-free interest rate
  0.07%     0.15%  
Dividend yield
  0%     0%  
 
Valuation and Other Assumptions for Stock Options
 
Valuation and Amortization Method.    The Company estimates the fair value of stock options granted using the Black-Scholes option model. We estimate the fair value using a single option approach and amortize the fair value on a straight-line basis for options expected to vest. All options are amortized over the requisite service periods of the awards, which are generally the vesting periods.
 
Expected Term.   The expected term of options granted represents the period of time that the options are expected to be outstanding. We estimate the expected term of options granted based on our historical experience of exercises including post-vesting exercises and termination.
 
Expected Volatility.    The Company estimates the volatility of our stock options at the date of grant using historical volatilities.  Historical volatilities are calculated based on the historical prices of our common stock over a period at least equal to the expected term of our option grants.
 
Risk-Free Interest Rate.    The Company bases the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield in effect at the time of option grant on U.S. Treasury zero-coupon issues with remaining terms equivalent to the expected term of our option grants.
 
Dividends.    The Company has never paid any cash dividends on common stock and we do not anticipate paying any cash dividends in the foreseeable future.
 
Forfeitures.    The Company uses historical data to estimate pre-vesting option forfeitures. We record stock-based compensation expense only for those awards that are expected to vest.

The Company does not use multiple share-based payment arrangements.

Restricted Stock Units

The following table summarizes the Company's restricted stock award activity for the period ended March 31, 2012:

   
Number
   
Weighted- Average
 
   
of
   
Grant Date
 
   
Shares
   
Fair Value
 
Balance March 31, 2011
    123,416     $ 2.66  
Granted
    148,989     $ 1.79  
Forfeited
    -     $ -  
Vested
    (35,864 )   $ 2.69  
Balance, March 31, 2012
    236,541     $ 2.11  
 
The weighted-average estimated grant date fair value, as defined by ASC Topic 718 for restricted stock awards granted during fiscal 2012 and 2011 was $1.79 and $2.70, per award, respectively.

As of March 31, 2012 there was $416 of total unrecognized compensation cost related to restricted stock which is expected to be recognized over a weighted-average period of 2.85 years.

Total stock-based compensation expense related to stock options and RSUs for the years ended March 31, 2012 and 2011 was $175 and $390, respectively.  The total compensation expense related to non-vested stock options and RSUs not yet recognized at  March 31, 2012 is $429 which is expected to be recognized over a weighted-average period of 2.77 years.