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Note 16 - Stockholders' Equity
 12 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]

16. Stockholders’ Equity

 

Stock-Based Compensation Plans

 

As of March 31, 2022, the Company had two active stock plans: the 2007 Stock Incentive Plan, as amended (the “2007 Plan”) and the Amended and Restated 2007 Director Stock Plan (the “2007 Director Plan”).  On August 1, 2019, the Company’s stockholders approved amendments to the 2007 Plan and the 2007 Director Plan. The amendment to the 2007 Plan increased the total number of shares of common stock authorized for issuance under the 2007 Plan from 3,400,000 shares to 4,600,000 shares. The amendment to the 2007 Director Plan increased the total number of shares of common stock authorized for issuance under the 2007 Director Plan from 230,000 shares to 280,000 shares.

 

The 2007 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the IRC of 1986, as amended, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. In the case of options, the exercise price is no less than the fair market value of the common stock, as determined by (or in a manner approved by) the Board of Directors, on the date of grant. The contractual life of options is generally 10 years. Options generally vest over a 3-5 year period while restricted stock generally vests over a 3 year period.

 

The 2007 Director Plan provides for the grant of nonstatutory stock options and stock awards to members of the Board of Directors who are not also employees of the Company ("outside directors"). Under the terms of the 2007 Director Plan, each outside director is granted an option to purchase shares of common stock with an aggregate grant date value equal to $40,000 upon his or her initial election to the Board with an exercise price equal to the fair market value of the Company’s common stock on the date of the grant. These options vest in equal annual installments over a two-year period. In addition, each outside director is granted an award of shares of common stock on the third business day following the last day of each fiscal year with an aggregate value equal to $50,000 using the closing price of the Company's common stock two business days following the last day of each fiscal year, subject to proration for any partial fiscal year of service.

 

As of March 31, 2022, the 2007 Plan had 268,523 shares available for future issuance and the 2007 Director Plan had 72,841 shares available for future issuance.

 

Stock-Based Compensation

 

The components of stock-based compensation for the years ended  March 31, 2022 and 2021 were as follows (in thousands):

 

  

Fiscal years ended March 31,

 
  

2022

  

2021

 

Stock options

 $3  $19 

Restricted stock and stock awards

  4,615   3,428 

Employee stock purchase plan

  43   38 

Total stock-based compensation expense

 $4,661  $3,485 

 

The estimated fair value of the Company’s stock-based awards, less expected annual forfeitures, is amortized over the awards’ service period. The total unrecognized compensation cost for unvested outstanding stock options was less than $0.1 million for the fiscal year ended March 31, 2022. The total unrecognized compensation cost for unvested outstanding restricted stock was $5.7 million for the fiscal year ended March 31, 2022. This expense will be recognized over a weighted-average expense period of approximately 1.5 years.

 

The following table summarizes stock-based compensation expense by financial statement line item for the fiscal years ended  March 31, 2022 and 2021 (in thousands):

 

  

Fiscal years ended March 31,

 
  

2022

  

2021

 

Cost of revenues

 $209  $40 

Research and development

  820   642 

Selling, general and administrative

  3,632   2,803 

Total

 $4,661  $3,485 

 

The following table summarizes the information concerning currently outstanding and exercisable employee and non-employee options:

 

  

Options / Shares

  Weighted-Average Exercise Price  Weighted-Average Remaining Contractual Term  Aggregate Intrinsic Value (thousands) 

Outstanding at March 31, 2021

  127,165  $44.37         

Granted

  —   —         

Exercised

  —   —         

Canceled/forfeited

  (28,880)  99.33         

Outstanding at March 31, 2022

  98,285  $28.23   1.5  $8 

Exercisable at March 31, 2022

  98,285  $28.23   1.5  $8 

Fully vested and expected to vest at March 31, 2022

  98,285  $28.23   1.5  $8 

 

The Company did not grant any options to purchase shares of common stock during the years ended March 31, 2022 and March 31, 2021, respectively. 

 

The following table summarizes the restricted stock activity for the year ended March 31, 2022:

 

  

Shares

  Weighted Average Grant Date Fair Value  Intrinsic Aggregate Value (thousands) 

Outstanding at March 31, 2021

  1,047,914  $7.17     

Granted

  569,348   14.47     

Vested

  (498,396)  10.25     

Forfeited

  (7,200)  11.50     

Outstanding at March 31, 2022

  1,111,666  $9.65  $8,460 

 

The total fair value of restricted stock that was granted during the fiscal years ended  March 31, 2022 and 2021 was $8.2 million and $5.1 million, respectively. The total fair value of restricted stock that vested during the fiscal years ended  March 31, 2022 and 2021 was $7.6 million and $4.3 million, respectively.

 

There were 76,500 performance-based restricted shares awarded during the fiscal year ended  March 31, 2022 for which the performance conditions are deemed probable to be met and the expense is being recorded over the expected vesting period.  There were 255,000 performance-based restricted shares awarded during the fiscal year ended  March 31, 2021 for which the performance conditions are deemed probable to be met and the expense is being recorded over the expected vesting period.

 

The remaining shares awarded vest upon the passage of time. For awards that vest upon the passage of time, expense is being recorded over the vesting period.

 

Employee Stock Purchase Plan

 

The Company maintains the 2000 Employee Stock Purchase Plan, as amended (the "ESPP") which provides employees with the opportunity to purchase shares of common stock at a price equal to the market value of the common stock at the end of the offering period, less a 15% purchase discount. As of March 31, 2022, the ESPP had 159,822 shares available for future issuance. The Company recognized less than $0.1 million of compensation expense for both the fiscal years ended  March 31, 2022 and 2021, related to the ESPP.