10. BENEFIT PLANS AND STOCK-BASED COMPENSATION
Stock Plan and Awards
The Company has stock options outstanding under its 2005 Equity-Based Compensation Plan covering a maximum of 10,000,000 common shares. The Company may grant incentive options, nonstatutory options, stock appreciation rights or restricted stock awards to employees, directors or consultants until 2015. At March 31, 2011 there were options outstanding on 6,022,500 common shares pursuant to the 2005 Plan with options on 3,603,000 shares available for future grant under the 2005 Plan plus any future forfeitures or cancellations from the 2005 Plan options currently outstanding.
Stock-Based Compensation
The grant-date fair value of employee share options and similar instruments is estimated using a Black-Scholes option-pricing model. The following table sets forth the weighted-average key assumptions and fair value results for stock options granted during the years ended March 31, 2011 and 2010 (annualized percentages):
|
|
Year Ended March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
Volatility
|
|
|
77.5 |
% |
|
|
77 |
% |
|
Risk-free interest rate
|
|
|
0.71 |
% |
|
|
0.95 |
% |
|
Forfeiture rate
|
|
|
1.0 |
% |
|
|
1.0 |
% |
|
Dividend yield
|
|
|
0.0 |
% |
|
|
0.0 |
% |
|
Expected life in years
|
|
|
2.5 |
|
|
|
2.2 |
|
|
Weighted-average fair value of options granted
|
|
$ |
0.04 |
|
|
$ |
0.06 |
|
