7. Stock-Based Compensation
|3 Months Ended|
Jun. 30, 2012
|Note 7. Stock-Based Compensation||
The Company accounts for share-based awards exchanged for employee services at the estimated grant date fair value of the award. The Company amortizes the fair value of employee stock options on a straight-line basis over the requisite service period of the awards. Compensation expense includes the impact of an estimate for forfeitures for all stock options. The estimated forfeiture rates used during the three months ended June 30, 2012 ranged from 2.53% to 2.95%.
Employee stock-based compensation expense is as follows (in thousands):
No income tax benefit has been recognized related to stock-based compensation expense and no tax benefits have been realized from exercised stock options.
At June 30, 2012, there were unrecognized compensation costs of $1,546,000 related to stock options which is expected to be recognized over a weighted-average amortization period of 1.74 years.
The Company did not capitalize any cost associated with stock-based compensation.
The Company issues new shares of common stock upon exercise of stock options.
A summary of all option activity as of June 30, 2012 and changes during the three months then ended is presented below:
The aggregate intrinsic value is calculated as the difference between the exercise price of the stock options and the underlying fair value of the Companys common stock ($0.74) for stock options that were in-the-money as of June 30, 2012.
Increase in Number of Shares Authorized in the 2006 Plan
As provided under the Amended and Restated 2006 Stock Incentive Plan (the 2006 Plan), the aggregate number of shares authorized for issuance as awards under the 2006 Plan automatically increased on April 1, 2012 by 1,450,395 shares (which number constitutes 5% of the outstanding shares on the last day of the year ended March 31, 2012). At June 30, 2012, the total shares authorized for issuance from the 2006 Plan is 4,345,166.
The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.
Reference 1: http://www.xbrl.org/2003/role/presentationRef