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Note 7 - Stockholders' Equity

3 Months Ended

Jun. 30, 2021

Share-based Payment Arrangement [Text Block]

Note 7. Stockholders' Equity

Stock-Based Compensation

Amounts recognized related to stock-based compensation are as follows:

	*Three Months Ended June 30,*
	*2021*			*2020*
Stock-based compensation expense	$	2,197		$	1,268
Amount of income tax (benefit) recognized in earnings		(2,785	)		(925	)
Stock-based compensation expense, net of tax	$	(588	)	$	343

Stock-based compensation expense is included in cost of revenues, selling, general and administrative, and research and development expense in the accompanying unaudited Condensed Consolidated Statements of Income.

The following is a summary of stock option award activity for the quarter ended June 30, 2021:

	*Stock Options*
	*Shares Subject to Options*			*Weighted- Average Exercise Price per Share*		*Weighted-Average Remaining Contractual Life (Years)*		*Aggregate Intrinsic Value*
Outstanding as of March 31, 2021		253		$	129.55		2.7	$	28,856
Awards granted		-			-
Awards forfeited or expired		(2	)		170.93
Awards exercised or distributed		(19	)		96.18
Outstanding as of June 30, 2021		232		$	131.90		2.5	$	32,299

The following is a summary of restricted stock unit ("RSU") award activity for the quarter ended June 30, 2021:

	*Time-Based Restricted Stock Units*					*Performance-Based Restricted Stock Units*
	*Number of Shares*			*Weighted- Average Grant Date Fair Value per Share*		*Number of Shares*			*Weighted- Average Grant Date Fair Value per Share*
Outstanding as of March 31, 2021⁽¹⁾		37		$	206.56		20		$	207.88
Awards granted		-			-		-
Performance adjustment⁽²⁾		-			-		16			190.07
Awards forfeited		(1	)		205.19		-
Awards distributed		(14	)		214.91		(28	)		197.81
Outstanding as of June 30, 2021⁽¹⁾		22		$	201.50		8		$	202.00

⁽¹⁾	Balances for performance-based restricted stock units ("PSUs") are reflected at target.

⁽²⁾

During the quarter ended June 30, 2021, the fiscal year 2019 PSUs vested and were paid at 280% of target, based on actual performance results and completion of service conditions. In addition, the PSUs granted to employees of Gyros Protein Technologies Holding AB vested at 60% of target, following a modification of the performance targets by the Compensation Committee of the Board of Directors during fiscal year 2021.

The outstanding time-based RSUs vest and settle in shares of our common stock on a one-for-one basis. Time-based RSUs issued to non-employee directors vest one year from the grant date. Outstanding time-based RSUs issued to employees have historically been granted with vesting periods of three, four, or five years. We recognize the expense relating to RSUs, net of estimated forfeitures, on a straight-line basis over the vesting period.

Performance-based RSUs vest upon completion of the service period described in the award agreement and based on achievement of the financial targets described in the award agreements. We recognize the expense relating to the performance-based RSUs based on the probable outcome of achievement of the financial targets on a straight-line basis over the service period. During fiscal year 2020, we awarded 8 PSUs (the "FY 20 PSUs") that are subject to both service and performance conditions to eligible employees. The FY 20 PSUs had a grant date fair value of $202.00 per share and vest based on our achievement of specific performance criteria for the three-year period from April 1, 2019 through March 31, 2022 and on a pro-rata basis after 12 months of continued service through June 15, 2022. The quantity of shares that will be issued upon vesting will range from 0% to 200% of the targeted number of shares; if the defined minimum targets are not met, then no shares will vest. Based on actual and projected performance through the quarter ended June 30, 2021, we estimate that 6 FY 20 PSUs will vest.

During the quarter ended June 30, 2021, the Compensation Committee of the Board of Directors modified a time-based restricted stock award granted to our Chief Executive Officer during fiscal year 2017, distributing 3 remaining outstanding shares effective June 8, 2021. The original award required vesting of 1 awards on each: March 20, 2022, 2023, and 2024. As a result of the modification, we recognized the previously unrecognized compensation cost of $351 during the quarter ended June 30, 2021.

Public Offering of Common Stock

On June 12, 2020, we completed the sale and issuance of 600 shares of our common stock and on June 19, 2020, our underwriters exercised in full their option to purchase an additional 90 shares of our common stock. The offering price to the public was $225.00 per share. The total proceeds we received from the offering, net of underwriting discounts and commissions and other offering expenses was $145,935.