Quarterly report pursuant to sections 13 or 15(d)

Description of Stock Plans

 v2.3.0.11
Description of Stock Plans
 3 Months Ended
Jun. 30, 2011
Description of Stock Plans
 
7.
Description of Stock Plans
 
On September 27, 2007, the stockholders of the Company adopted the 2007 Employee, Director and Consultant Stock Plan (“Plan”). Under the Plan, the Company may grant up to 3,000 shares or equivalents of common stock of the Company as incentive stock options (“ISO”), non-qualified options (“NQO”), stock grants or stock-based awards to employees, directors or consultants, except that ISOs shall only be issued to employees. Generally, ISOs and NQOs shall be issued at prices not less than fair market value at the date of issuance, as defined, and for terms ranging up to ten years, as defined. All other terms of grants shall be determined by the board of directors of the Company, subject to the Plan.
 
On February 12, 2008, the Company amended the Plan to increase the number of shares of our common stock that may be issued under the Plan to 7,000 shares and on March 7, 2008, amended the Plan to increase the maximum number of shares of the Company's common stock with respect to which stock rights may be granted in any fiscal year to 1,100 shares. All other terms of the plan remain in full force and effect.
 
Option Plans
 
The following table summarizes options granted for the periods or as of the dates indicated:
 
(in thousands)
  
Number of
    
Weighted Average
  
   
Shares
    
Exercise Price
  
Outstanding at March 31, 2011
     6,187     $ 1.79  
Granted
     -     $ -  
Canceled
     (347 )   $ 0.48  
Exercised
     -     $ -  
Outstanding at June 30, 2011
     5,840     $ 1.87  
Exercisable at June 30, 2011
     5,840     $ 1.87  
 
In April 2011, two former employees each agreed to cancel options to purchase 173,622 shares of common stock in connection with their respective termination agreements.
 
The exercise price for options outstanding at June 30, 2011 was as follows:
 
   
Weighted
                    
   
Average
          
Weighted
        
   
Remaining
    
Number
    
Average
    
Aggregate
  
Range of
  
Contractual Life
    
Outstanding
    
Exercise
    
Intrinsic
  
Exercise Price
  
(Years)
    
June 30, 2011
    
Price
    
Value
  
                         
$0 - $1.00
    5.06       2,923     $ 0.49     $ 252,000  
$2.00 - $3.00
    6.94       2,117     $ 2.67     $ -  
$4.00 - $5.00
    6.63       800     $ 4.75     $ -  
      5.96       5,840     $ 1.87     $ 252,000  
 
The exercise price for options exercisable at June 30, 2011 was as follows:
 
   
Weighted
                    
   
Average
          
Weighted
        
   
Remaining
    
Options
    
Average
    
Aggregate
  
Range of
  
Contractual Life
    
Exercisable
    
Exercise
    
Intrinsic
  
Exercise Price
  
(Years)
    
June 30, 2011
    
Price
    
Value
  
                         
$0 - $1.00
    5.06       2,923     $ 0.49     $ 252,000  
$2.00 - $3.00
    6.94       2,117     $ 2.67     $ -  
$4.00 - $5.00
    6.63       800     $ 4.75     $ -  
      5.96       5,840     $ 1.87       252,000  
 
Stock Plans
 
A summary of the status of the Company’s nonvested shares as of June 30, 2011 and March 31, 2011 pursuant to the Plan and changes during the period ended June 30, 2011 is presented below:
 
(in thousands)
        
Weighted Average
  
   
Number of
    
Grant Date
  
   
Shares
    
Fair Value
  
Nonvested at March 31, 2011
     -     $ -  
Granted
     -     $ -  
Vested
     -     $ -  
Exercised
     -     $ -  
Nonvested at June 30, 2011
     -     $ -  
                 
Cumulative forfeited
     (565 )   $ 0.53  
 
Option Plans and Stock Plans
 
Total stock compensation expense is included in the following statements of operations components:
 
   
3 Months Ended
    
3 Months Ended
  
   
June 30,
    
June 30,
  
   
2011
    
2010
  
             
Product development
   $ 69     $ 2  
Sales and marketing
   $ -     $ 5  
General and administrative
   $ -     $ 185  
                 
    $ 69     $ 192