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Note 10 - Stock-based Compensation | 12 Months Ended
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Mar. 31, 2018
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 10 . Stock- B ased C ompensation We adopted equity award plans, which are used to grant stock options and/or RSA’s for the benefit of our employees and outside directors. Under terms of the plans, stock options are granted at an amount not less than 100% of the quoted market price of the underlying shares at the date of grant. Stock options are exercisable for terms of five to ten years and vest ratably over terms of four to seven years. RSA’s vest ratably over terms of approximately five to seven years. All of our equity award plans have been approved by our shareholders. On August 8, 2014, we adopted The Mesa Laboratories, Inc. 2014 Equity Plan (the “2014 Plan”), which was subsequently approved by our shareholders on October 2, 2014 at our 2014 Annual Meeting of Shareholders. The purpose of the 2014 Plan is to promote the success and enhance the value of the Company by linking the personal interests of our employees, officers and directors to those of our shareholders by providing such persons with an incentive for outstanding performance. A total of 1,100,000 shares of common stock were reserved for issuance under the 2014 Plan and are subject to terms as set by the Compensation Committee of the Board of Directors at the time of grant. As of March 31, 2018, we have 289,225 stock options outstanding and have issued 8,788 RSA’s under the 2014 Plan. Under the December 8, 2006 plan (the “2006 Plan”), a total of 400,000 shares of common stock were reserved for issuance and were subject to terms as set by the Compensation Committee of the Board of Directors at the time of grant. On September 23, 2010, our shareholders approved an amendment to the 2006 Plan whereby the number of shares authorized for issuance was increased to 800,000. As a result of the approval of the 2014 Plan by our shareholders, no further awards will be made under the 2006 Plan and it will remain in effect only as long as awards previously made thereunder remain outstanding. As of March 31, 2018, we have 169,133 stock options outstanding under the 2006 Plan. On February 27, 2013, we filed a Registration Statement on Form S- 8 whereby we registered the additional 400,000 shares of common stock underlying stock options issuable under the 2006 Plan. Amounts recognized in the consolidated financial statements related to stock-based compensation are as follows (in thousands, except per share data):
|  | Year E nded March 31, |
|  | 201 8 |  |  | 2017 |  |  | 2016 |
Total cost of stock-based compensation charged against earnings before income taxes |  | $ | 1,672 |  |  | $ | 1,411 |  |  | $ | 1,327 |
Amount of income tax benefit recognized in earnings |  |  | 1,194 |  |  |  | 1,737 |  |  |  | 794 |
Amount charged (added) against (to) net (loss) income |  | $ | 478 |  |  | $ | (326 | ) |  | $ | 533 |
Impact on net (loss) income per common share: |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 0.13 |  |  | $ | (0.09 | ) |  | $ | 0.15 |
Diluted |  |  | 0.13 |  |  |  | (0.08 | ) |  |  | 0.14 |
Stock-based compensation expense is included in cost of revenues, selling and general and administrative expense in the accompanying consolidated statements of operations. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model (“Black-Scholes”) that uses assumptions noted in the following table. We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option. The dividend yield is calculated based upon the dividend payments made during the prior four quarters as a percent of the average stock price for that period.
|  | Year E nded March 31, |
|  | 2018 |  |  | 2017 |  |  | 201 6 |
Volatility |  | 32.85% | - | 35.44% |  |  | 32.05% | - | 33.76% |  |  | 27.1% | - | 30.2% |
Risk-free interest rate |  |  | 1.77% |  |  |  |  | 1.22% |  |  |  |  | 1.09% |  |
Expected option life (years) |  |  | 6 |  |  |  |  | 5 |  |  |  |  | 8 |  |
Dividend yield |  |  | . 57% |  |  |  |  | .55% |  |  |  |  | .70% |  |
A summary of the option activity as of and for the years ended March 31, 2018, 2017 and 2016 is as follows:
|  | Number of Shares |  |  | Weighted- A verage Exercise Price |  |  | Weighted- A verage Remaining Contractual Term |  |  | Aggregate Intrinsic Value (000s) |
Outstanding at March 31, 2015 |  |  | 437,248 |  |  | $ | 55.81 |  |  |  | 4.9 |  |  | $ | 9,445 |
Granted |  |  | 184,030 |  |  |  | 72.89 |  |  |  | 6.7 |  |  |  | -- |
Forfeited |  |  | (16,334 | ) |  |  | 75.16 |  |  |  | 6.5 |  |  |  | -- |
Expired |  |  | -- |  |  |  | -- |  |  |  | -- |  |  |  | -- |
Exercised |  |  | (89,224 | ) |  |  | 38.28 |  |  |  | -- |  |  |  | -- |
Outstanding at March 31, 2016 |  |  | 515,720 |  |  |  | 64.32 |  |  |  | 5.2 |  |  |  | 16,561 |
Granted |  |  | 134,955 |  |  |  | 102.52 |  |  |  | 5.5 |  |  |  | -- |
Forfeited |  |  | (35,015 | ) |  |  | 87.5 |  |  |  | 4.5 |  |  |  | -- |
Expired |  |  | (904 | ) |  |  | 41.51 |  |  |  | -- |  |  |  | -- |
Exercised |  |  | (104,395 | ) |  |  | 50.12 |  |  |  | -- |  |  |  | -- |
Outstanding at March 31, 2017 |  |  | 510,361 |  |  |  | 75.78 |  |  |  | 5.0 |  |  |  | 23,956 |
Granted |  |  | 96,330 |  |  |  | 123.13 |  |  |  | 5.0 |  |  |  | -- |
Forfeited |  |  | (72,166 | ) |  |  | 90.07 |  |  |  | 4.2 |  |  |  | -- |
Expired |  |  | (1,024 | ) |  |  | 82.24 |  |  |  | -- |  |  |  | -- |
Exercised |  |  | (75,143 | ) |  |  | 57.99 |  |  |  | -- |  |  |  | -- |
Outstanding at March 31, 2018 |  |  | 458,358 |  |  |  | 86.38 |  |  |  | 4.5 |  |  |  | 28,445 |
Exercisable at March 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  |  | 143,836 |  |  | $ | 62.96 |  |  |  | 4.0 |  |  | $ | 12,295 |
2017 |  |  | 136,595 |  |  |  | 50.61 |  |  |  | 3.9 |  |  |  | 9,847 |
2016 |  |  | 157,457 |  |  |  | 42.49 |  |  |  | 3.6 |  |  |  | 8,481 |
A summary of the status of our unvested option shares as of and for the years ended March 31, 2018, 2017 and 2016 is as follows:
|  | Unvested Shares |  |  | Weighted- a verage Grant-D ate Fair Value |
Unvested at March 31, 2015 |  |  | 274,038 |  |  | $ | 18.42 |
Options granted |  |  | 184,030 |  |  |  | 18.78 |
Options forfeited |  |  | (16,334 | ) |  |  | 19.07 |
Options vested |  |  | (83,471 | ) |  |  | 14.65 |
Unvested at March 31, 2016 |  |  | 358,263 |  |  |  | 19.46 |
Options granted |  |  | 134,955 |  |  |  | 31.27 |
Options forfeited |  |  | (35,015 | ) |  |  | 22.64 |
Options vested |  |  | (84,437 | ) |  |  | 16.96 |
Unvested at March 31, 2017 |  |  | 373,766 |  |  |  | 22.49 |
Options granted |  |  | 96,330 |  |  |  | 39.06 |
Options forfeited |  |  | (72,166 | ) |  |  | 28.43 |
Options vested |  |  | (83,408 | ) |  |  | 21.84 |
Unvested at March 31, 2018 |  |  | 314,522 |  |  |  | 29.01 |
The total intrinsic value of options exercised was $6,309,000, $7,574,000 and $5,260,000 for the years ended March 31, 2018, 2017 and 2016, respectively. As of March 31, 2018, there was $5,958,000 and $963,000 of total unrecognized compensation expense related to unvested options and RSA’s, respectively. As of March 31, 2018, we have 767,888 shares available for future option or RSA grants.

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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