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Stock-Based Compensation
 6 Months Ended
Sep. 30, 2023
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

NOTE 10 – STOCK-BASED COMPENSATION

 

Warrants issued for services

 

From time to time, the Company issues warrants to purchase its common stock. These warrants are valued using the Black-Scholes model and using the volatility, market price, exercise price, risk-free interest rate, and dividend yield appropriate at the date the warrants were issued. The major assumptions used in the Black Scholes model included the followings: the expected term is five years; risk-free interest rate is 1.8% to 2.8%; and the expected volatility is 50.3% to 52.2%. All of the outstanding warrants were fully vested. 137,210 and 57,200 warrants expired in fiscal 2023 and 2024, respectively.

 

All stock warrants activities are summarized as follows:

 

   Option to   Weighted
Average		 
   Acquire
Shares		   Exercise
Price		 
Stock warrants outstanding at March 31, 2023   57,200   $8.75 
Granted   
-
    
-
 
Exercised   
-
    
-
 
Expired   (57,200)   8.75 
Stock warrants outstanding at September 30, 2023   
-
   $
-
 

 

Stock Options

 

On March 21, 2018, the Board of Directors adopted the Jerash Holdings (US), Inc. 2018 Stock Incentive Plan (the “Plan”), pursuant to which the Company may grant various types of equity awards. 1,484,250 shares of common stock of the Company were reserved for issuance under the Plan. In addition, on July 19, 2019, the Board of Directors approved an amendment and restatement of the Plan, which was approved by the Company’s stockholders at its annual meeting of stockholders on September 16, 2019. The amended and restated Plan increased the number of shares reserved for issuance under the Plan by 300,000, to 1,784,250, among other changes. On September 30, 2023, the Company had 1,029,150 of shares remaining available for future issuance under the Plan.

 

All stock option activities are summarized as follows:

 

   Option to   Weighted
Average		 
   Acquire
Shares		   Exercise
Price		 
Stock options outstanding at March 31, 2023   1,136,500   $6.90 
Granted   
-
    
-
 
Exercised   
-
    
-
 
Expired   (986,500)   7.00 
Stock options outstanding at September 30, 2023   150,000   $6.25 

 

All these outstanding options were fully vested and exercisable. As of September 30, 2023, there were 986,500 stock options expired and 150,000 stock options outstanding. The weighted average remaining life of the options is 5.3 years.

 

Restricted Stock Units

 

On June 24, 2021, the Board of Directors approved the grant of 200,000 RSUs under the Plan to 32 executive officers’ and employees of the Company, with a one-year vesting period. The fair value of these RSUs on June 24, 2021 was $1,266,000, based on the market price of the Company’s common stock as of the date of the grant. On June 30, 2022, all 200,000 RSUs were vested.

 

On February 9, 2023, the Board of Directors approved the grant of 405,800 RSUs under the Plan to 37 executive officers and employees of the Company, with a two-year vesting period. The fair value of these RSUs on February 15, 2023 was $1,937,695, based on the market price of the Company’s common stock as of the date of the grant. As of September 30, 2023, there were $1,331,025 unrecognized stock-based compensation expenses to be recognized to February 2025 and 405,100 RSUs remained.

 

RSU activities are summarized as follows:

 

   Number of
Shares		   Weighted-
Average
Grant
Date Fair
Value Per
Share		 
RSU outstanding at March 31, 2023   405,100   $4.78 
Granted   
-
    
-
 
Vested   
-
    
-
 
Forfeited   
-
    
-
 
RSU outstanding at September 30, 2023   405,100   $4.78 

 

Total expenses related to the RSU issued were $243,448 and $nil for the three months ended September 30, 2023 and 2022, respectively. Total expenses related to the RSU issued were $484,250 and $294,822 for the six months ended September 30, 2023 and 2022, respectively.