Quarterly report pursuant to sections 13 or 15(d)

Description of Stock Plans

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Description of Stock Plans
 9 Months Ended
Dec. 31, 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     (356 )   $ 0.48  
Exercised     -     $ -  
Outstanding at December 31, 2011     5,831     $ 1.87  
Exercisable at December 31, 2011     5,831     $ 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.

 

In December 2011, the Company recorded the cancellation of 9,122 shares of common stock relating to three former employees.

 

The exercise price for options outstanding and options exercisable at December 31, 2011 was as follows:

 

    Weighted                    
    Average           Weighted        
    Remaining     Number     Average     Aggregate  
Range of   Contractual Life     Outstanding     Exercise     Intrinsic  
Exercise Price   (Years)     December 31, 2011     Price     Value  
                         
$0 - $1.00     4.56       2,914     $ 0.49     $ 610,759  
$2.00 - $3.00     6.44       2,117     $ 2.67     $ -  
$4.00 - $5.00     6.12       800     $ 4.75     $ -  
      5.46       5,831     $ 1.87     $ 610,759  

 

 Stock Plans

 

A summary of the status of the Company’s nonvested shares as of December 31, 2011 and March 31, 2011 pursuant to the Plan, and changes during the period ended December 31, 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 December 31, 2011     -     $ -  
                 
Cumulative forfeited     (565 )   $ 0.53  

  

Option Plans and Stock Plans

 

Total stock compensation expense is included in the following statements of operations components:

  

    Nine Months Ended     Nine Months Ended  
    December 31,     December 31,  
    2011     2010  
             
Product development   $ 69     $ 4  
Sales and marketing   $ -     $ 10  
General and administrative   $ -     $ 222  
    $ 69     $ 236