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Stock-Based Compensation

12 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Note 16 — Stock-Based Compensation

The Company’s board of directors and stockholders approved the Company’s 2016 Equity Incentive Plan, as amended (the “2016 Plan”) which reserves a total of 12,600,000 shares of the Company’s common stock for issuance. Incentive awards authorized under the 2016 Plan include, but are not limited to, nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance grants intended to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), and stock appreciation rights. If an incentive award granted under the 2016 Plan expires, terminates, is unexercised or is forfeited, or if any shares are surrendered to the Company in connection with the exercise of an incentive award, the shares subject to such award and the surrendered shares will become available for further awards under the 2016 Plan.

The maximum contractual term for awards is 10 years. As of March 31, 2019, there were 5,832,508 shares of common stock available for future issuance under the 2016 Plan.

Options Grants to Employees

The Company recognized share-based compensation expense to employees of $7.2 million and $3.2 million during the years ended March 31, 2019 and 2018, respectively. The total tax benefit recognized related to this share-based compensation expense to employees was $0 for the years ended March 31, 2019 and 2018. As of March 31, 2019, unrecognized compensation costs for unvested awards to employees was $4.0 million, which is expected to be recognized over a weighted-average period of 0.7 years on an accelerated basis. The maximum contractual term for awards is 10 years.

The following table provides information about our option grants to employees for the last two fiscal years:

		Year Ended March 31,
		2019				2018
Number of options granted			1,237,500				4,883,333
Weighted-average exercise price per share		$	4.63			$	3.56
Weighted-average grant date fair value per share		$	2.23			$	3.48

The grant date fair value of each of these option grants to employees was determined using the Black-Sholes-Merton option-pricing model with the following assumptions:

		Year Ended March 31,
		2019				2018
Expected volatility			47.43%-52.30	%			47.80% - 205.93%
Dividend yield			0.00	%			0.00	%
Risk-free rate			2.52%-2.96	%			1.63%-2.69%
Expected term (in years)			5.10-7.00				5.12-10.00

The following table summarizes the activity of our options to employees during the years ended March 31, 2019 and 2018:

		Number of Shares				Weighted-Average Exercise Price per Share
Outstanding as of March 31, 2017			-			$	-
Granted			4,883,333				3.56
Exercised			-				-
Forfeited or expired			(1,083,332	)			1.65
Outstanding as of March 31, 2018			3,800,001				4.10
Granted			1,237,500				4.63
Exercised			-				-
Forfeited or expired			(157,500	)			5.49
Outstanding as of March 31, 2019			4,880,001				3.95
Exercisable as of March 31, 2019			1,902,227				3.79

The weighted-average remaining contractual term for options to employees outstanding and options to employees exercisable as of March 31, 2019 was 8.8 years and 8.8 years, respectively. The intrinsic value of options to employees outstanding and options to employees exercisable was $7.2 million and $3.0 million, respectively, at March 31, 2019.

Options Grants to Non-Employees

The Company recognized share-based compensation expense to non-employees of $0.1 million and less than $0.1 million during the years ended March 31, 2019 and 2018, respectively. The total tax benefit recognized related to this share-based compensation expense to non-employees was $0 for the years ended March 31, 2019 and 2018. As of March 31, 2019, unrecognized compensation costs for unvested awards to non-employees was $43 thousand, which is expected to be recognized over a weighted-average period of 0.4 years on an accelerated basis. The maximum contractual term for awards is 10 years.

The following table provides information about our option grants to non-employees for the last two fiscal years:

		Year Ended March 31,
		2019				2018
Number of options granted			-				101,667
Weighted-average exercise price per share		$	-			$	4.00
Weighted-average grant date fair value per share		$	-			$	1.84

The grant date fair value of each of these option grants to non-employees was determined using the Black-Sholes-Merton option pricing model with the following assumptions:

		Year Ended March 31,
		2019				2018
Expected volatility			-	%			47.80%-48.69	%
Dividend yield			-	%			0.00	%
Risk-free rate			-	%			2.65	%
Expected term (in years)			-				5.50-6.00

The following table summarizes the activity of our options to non-employees during the years ended March 31, 2019 and 2018:

		Number of Shares				Weighted-Average Exercise Price per Share
Outstanding as of March 31, 2017			-			$	-
Granted			101,667				4.00
Exercised			-				-
Forfeited or expired			-				-
Outstanding as of March 31, 2018			101,667				4.00
Granted			-				-
Exercised			-				-
Forfeited or expired			-				-
Outstanding as of March 31, 2019			101,667				4.00
Exercisable as of March 31, 2019			-				-

The weighted average remaining contractual term for options to non-employees outstanding as of March 31, 2019 was 8.9 years. The intrinsic value of options to non-employees outstanding and options to non-employees exercisable was $0 at March 31, 2019.

Restricted Stock Units Grants

The Company recognized share-based compensation expense to employees of $2.1 million and $0 million during the years ended March 31, 2019 and 2018, respectively. Compensation expense resulting from restricted unit grants is measured at fair value on the date of grant and is recognized as share-based compensation expense over the applicable vesting period. The total tax benefit recognized related to this share-based compensation expense to employees was $0 for the years ended March 31, 2019 and 2018. As of March 31, 2019, unrecognized compensation costs for unvested awards to employees was $4.3 million, which is expected to be recognized over a weighted-average period of 1.3 years on an accelerated basis.

The following table provides information about our restricted stock units grants to employees for the last two fiscal years:

		Year Ended March 31,
		2019				2018
Number of units granted			1,377,391				-
Weighted-average grant date fair value per share		$	4.64			$	-

The following table summarizes the activity of our restricted stock units to employees during the years ended March 31, 2019 and 2018:

		Number of Shares
Outstanding as of March 31, 2018			-
Granted			1,377,391
Vested			-
Canceled			-
Outstanding as of March 31, 2019			1,377,391
Vested and expected to vest at March 31, 2019			1,377,391

The weighted-average remaining contractual term for restricted stock units to employees outstanding and vested and expected to vest as of March 31, 2019 was 1.3 years, respectively. The intrinsic value of restricted share units to employees outstanding and vested and expected to vest was $1.2 million, respectively, at March 31, 2019.