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10. STOCK-BASED COMPENSATION

9 Months Ended

Dec. 31, 2021

NOTE 10—STOCK-BASED COMPENSATION

As of December 31, 2021, 4,488,898 shares of common stock were available for grant under the Company’s Amended and Restated 2016 Equity Incentive Plan.

The following table summarizes the Company’s stock option activities for the nine months ended December 31, 2021:


			Weighted
		Number of Shares	Average	Weighted
	Shares	Underlying	Remaining	Average
	Available for	Options	Contractual	Exercise		Intrinsic
	Grant	Outstanding	Life (Years)	Price		Value
Balance at March 31, 2021	1,331,562	8,432,877		$	6.17
Options reserved	4,000,000	—		$	—
Granted	(1,081,951)	1,081,951		$	5.61
Exercised	—	(313,097)		$	5.13	$	149,121
Forfeited	239,287	(526,604)		$	6.62
Balance at December 31, 2021	4,488,898	8,675,127	5.68	$	6.11
Options vested and exercisable		5,453,751	4.06	$	5.84	$	516,592
Options vested and expected to vest		8,569,093	5.64	$	6.11	$	516,592

The weighted average fair value per underlying share of options granted during the three months ended December 31, 2021 and 2020 was $2.41 and $2.51, respectively, and $2.36 and $2.39 for the nine months ended December 31, 2021 and 2020, respectively.

Options outstanding by exercise price at December 31, 2021 were as follows:


				Number of	Options Outstanding			Options Exercisable
				Shares	Weighted		Weighted Average		Weighted
				Underlying	Average		Remaining	Number	Average
				Options	Exercise		Contractual	Vested and	Exercise
Exercise Price				Outstanding	Price		Life (Years)	Exercisable	Price
$	3.40	-	4.98	1,312,240	$	4.39	2.73	1,312,240	$	4.39
$	4.92	-	5.23	1,107,906	$	5.10	3.69	1,107,906	$	5.10
$	5.28	-	5.58	994,343	$	5.54	9.00	121,802	$	5.30
$	5.59	-	5.83	1,205,877	$	5.77	5.92	493,572	$	5.70
$	5.91	-	6.70	1,494,019	$	6.44	6.02	824,239	$	6.36
$	6.86	-	7.26	986,473	$	7.08	4.49	986,473	$	7.08
$	7.40	-	7.88	729,506	$	7.61	7.91	357,059	$	7.63
$	8.06			157,210	$	8.06	8.09	78,604	$	8.06
$	8.09			82,160	$	8.09	6.08	82,160	$	8.09
$	8.30			605,393	$	8.30	7.53	89,696	$	8.30
				8,675,127	$	6.11	5.68	5,453,751	$	5.84

The following table summarizes stock-based compensation expense by line item in the Condensed Consolidated Statements of Operations, all relating to employee stock plans:


	Three Months Ended December 31,				Nine Months Ended December 31,
	2021		2020		2021		2020

	(In Thousands)				(In Thousands)
Cost of revenues	$	58	$	88	$	192	$	260
Research and development		416		343		1,304		1,109
Selling, general and administrative		266		262		783		732
Total	$	740	$	693	$	2,279	$	2,101

As stock-based compensation expense recognized in the Condensed Consolidated Statement of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures in accordance with authoritative guidance. The Company estimates forfeitures at the time of grant and revises the original estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

No tax benefit related to stock-based compensation was recognized in the nine months ended December 31, 2021 due to a full valuation allowance. There were no windfall tax benefits realized from exercised stock options in either of these periods. Compensation cost capitalized within inventory at December 31, 2021 was immaterial. As of December 31, 2021, the Company’s total unrecognized compensation cost was $5.7 million, which will be recognized over a weighted average period of 2.13 years. The Company calculated the fair value of stock-based awards in the periods presented using the Black-Scholes option pricing model and the following weighted average assumptions:


	Three Months Ended December 31,						Nine Months Ended December 31,
	2021		2020				2021				2020
Stock Option Plans:
Risk-free interest rate	1.20	%	0.38	%	0.66	-	1.20	%	0.22	-	0.38	%
Expected life (in years)	5.00		5.00				5.00				5.00
Volatility	49.1	%	47.1	%	47.7	-	49.1	%	41.9	-	47.1	%
Dividend yield	—	%	—	%			—	%			—	%
Employee Stock Purchase Plan:
Risk-free interest rate	0.07	%	0.12	%	0.04	-	0.07	%	0.12	-	0.15	%
Expected life (in years)	0.50		0.50				0.50				0.50
Volatility	45.6	%	68.6	%	45.6		57.4	%	67.1	-	68.6	%
Dividend yield	—	%	—	%			—	%			—	%