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Stockholders' Deficit

12 Months Ended

Mar. 31, 2019

Equity [Abstract]

Stockholders' Deficit

Note 17 — Stockholders' Deficit

Issuance of Common Stock for Services to Consultants

During the year ended March 31, 2019 and 2018, the Company issued 449,374 and 725,885 restricted shares of its common stock valued at $2.2 million and $3.4 million, respectively, to certain Company consultants. During the year ended March 31, 2019 and 2018, the Company recorded $3.1 million and $1.7 million, respectively, of expense related to the restricted stock issuances. As of March 31, 2019, the remaining unrecognized compensation cost of approximately $0.6 million is expected to be recorded over the next year as shares vest.

Issuance of Common Stock for Services to Employees

During the year ended March 31, 2019 and 2018, the Company issued 0 and 408,433 shares of its common stock valued at $0 and $1.9 million, respectively, to certain employees. During the year ended March 31, 2019 and 2018, the Company recorded $0.5 million and $1.2 million, respectively, of expense related to the stock issuances. As of March 31, 2019, the remaining unrecognized compensation cost of $38 thousand is expected to be recorded over the next year as the shares vest.

Additional details of the Company's issuances of its restricted common stock to employees during the years ended March 31, 2019 and 2018 are as follows:

		Number of Shares				Weighted-Average Grant Date Fair Value per Share
Non-vested as of March 31, 2017			-			$	-
Granted			408,433				4.58
Vested			(220,933	)			4.21
Forfeited or expired			-
Non-vested as of March 31, 2018			187,500				5.01
Granted			-
Vested			(172,222	)			5.01
Forfeited or expired			-				-
Non-vested as of March 31, 2019			15,278				5.01

Warrants

During the year ended March 31, 2018, the Company issued warrants along with a series of convertible notes to acquire 740,834 shares of the Company's common stock valued at $1.4 million at an exercise price of $0.01-0.03 per share.

During the year ended March 31, 2018, 790,834 warrants were exercised into 790,834 shares of the Company's common stock for net proceeds of $15 thousand.

On February 21, 2018, the Company issued warrants to acquire 20,000 shares of the Company's common stock in exchange for services performed by nonemployees. These warrants were valued at $28 thousand at an exercise price of $4.05 per share. The aggregate fair value of the 20,000 warrants issued was determined to be $28 thousand using the Black-Scholes-Merton option pricing model with the following average assumptions: risk-free interest rate of 2.44%; dividend yield of 0%; volatility rate of 48.20%; and an expected life of three years.

On March 12, 2018, the Company issued warrants to acquire 147,363 shares of the Company's common stock, with an exercise price of $4.00 per share, valued at $0.2 million as an inducement to convert certain Company 6% convertible notes. The aggregate fair value of the 147,363 warrants issued was determined using the Black-Scholes-Merton option pricing model with the following average assumptions: risk-free interest rate of 2.43%; dividend yield of 0%; volatility rate of 48.30%; and an expected life of three years.

The table below summarizes the Company's warrant activities:

		Number of Warrants				Weighted Average Exercise Price				Weighted-Average Remaining Contractual Term (in years)
Balance outstanding, March 31, 2017			50,000			$	0.30				2.99
Granted			908,197				0.75				2.50
Exercised			(790,834	)			0.02				2.25
Forfeited/expired			-				-				-
Balance outstanding, March 31, 2018			167,363				4.01				2.94
Granted			-				-				-
Exercised			-				-				-
Forfeited/expired			-				-				-
Balance outstanding, March 31, 2019			167,363				4.01				1.94
Exercisable, March 31, 2019			167,363				4.01				1.94

At March 31, 2019, the intrinsic value of warrants outstanding and exercisable was $0.2 million.

Authorized Common Stock and Creation of Preferred Stock

The Company has the authority to issue to 501,000,000 shares, consisting of 500,000,000 shares of the Company's common stock and 1,000,000 shares of the Company's preferred stock, $0.001 par value per share (the "preferred stock").

The Company may issue shares of preferred stock from time to time in one or more series, each of which will have such distinctive designation or title as shall be determined by the Company's board of directors and will have such voting powers, full or limited, or no voting powers, and such preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as shall be stated in the resolution or resolutions providing for the issue of such class or series of preferred stock as may be adopted from time to time by the Company's board of directors. The Company's board of directors will have the power to increase or decrease the number of shares of preferred stock of any series after the issuance of shares of that series, but not below the number of shares of such series then outstanding. In case the number of shares of any series shall be decreased, the shares constituting such decrease will resume the status of authorized but unissued shares of preferred stock.

While the Company does not currently have any plans for the issuance of preferred stock, the issuance of such preferred stock could adversely affect the rights of the holders of common stock and, therefore, reduce the value of the common stock. It is not possible to state the actual effect of the issuance of any shares of preferred stock on the rights of holders of the common stock until and unless the Company's board of directors determines the specific rights of the holders of the preferred stock; however, these effects may include: restricting dividends on the common stock, diluting the voting power of the common stock, impairing the liquidation rights of the common stock, or delaying or preventing a change in control of the Company without further action by the stockholders.