XML 21 R12.htm IDEA: XBRL DOCUMENT

STOCK-BASED COMPENSATION

6 Months Ended

Sep. 30, 2022

Equity [Abstract]

STOCK-BASED COMPENSATION

NOTE 6 – STOCK-BASED COMPENSATION

Amended 2017 Equity Incentive Plan

In October 2017, the Board approved the 2017 Equity Incentive Plan (the Plan), as amended, with 1,000,000 shares of common stock reserved for issuance. In January 2020 and August 2021, the Board approved increases in the number of shares reserved for issuance under the Plan by 333,334 and 1,333,334 shares, respectively. Under the Plan, eligible employees, directors and consultants may be granted a broad range of awards, including stock options, stock appreciation rights, restricted stock, performance-based awards and restricted stock units. The Plan is administered by the Board or, in the alternative, a committee designated by the Board.

Stock-Based Compensation Expense

The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant date fair value. As of September 30, 2022, the unamortized compensation cost was $3,847,696 related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 2.17 years.

During the six months ended September 30, 2022, the Company granted 14,039 shares to members of the Board in accordance with the compensation plan for non-employee directors. During the six months ended September 30, 2022, the Company granted options with 10-year terms to purchase 506,657 shares of its common stock to employees, directors and consultants. During the six months ended September 30, 2022, the fair value of awards granted was $2,174,367, and $1,481,009 was recorded as stock-based compensation expense in the condensed consolidated statement of operations. The following assumptions were used in the fair value calculations:

The following assumptions were used in the fair value calculations:

		Three Months Ended September 30,								Six Months Ended September 30,
		2022				2021				2022				2021
Risk-free interest rates			3.00% - 4.06%				0.8% - 0.98%				2.82% - 4.06%				0.8% - 0.98%
Volatility			156% - 159%				367% - 370%				156% - 223%				89% - 366%
Expected life (years)			5.0 - 5.7				5.0 - 6.2				5.0 - 5.7				5.0 - 6.0

The fair values of options at the grant date were estimated utilizing the Black-Scholes valuation model, which includes simplified methods to establish the fair term of options, as well as average volatility. The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. A dividend yield of zero was applied because the Company has never paid dividends and has no intention to pay dividends in the foreseeable future. The Company accounts for forfeitures as they occur.

A summary of stock option activity under the EIP is presented below:

Schedule of Stock Option activity

						Options Outstanding
										Weighted
		Shares								Average
		Available				Number of				Exercise
		for Grant				Shares				Prices
Balance at March 31, 2022			989,466				1,650,705			$	6.58
Options granted			(265,634	)			265,634				4.35
Share awards			(2,664	)			—				—
Options cancelled and returned to the Plan			96,668				(96,668	)			7.69
Balance at June 30, 2022			817,836				1,819,671				6.19
Options granted			(241,023	)			241,023				4.35
Share awards			(11,375	)			—				—
Options cancelled and returned to the Plan			30,444				(30,444	)			4.67
Balance at September 30, 2022			595,882				2,030,250			$	6.00

There were no stock options exercised during the six months ended September 30, 2022 and 2021.

The following table summarizes the range of outstanding and exercisable options as of September 30, 2022:

		Options Outstanding												Options Exercisable
Range of Exercise Price		Number Outstanding				Weighted Average Remaining Contractual Life (in Years)				Weighted Average Exercise Price				Number Exercisable				Weighted Average Exercise Price				Aggregate Intrinsic value
$3.95 - $17.70			2,030,250				8.02			$	6.00				1,228,447			$	5.65			$	952,473

The intrinsic value per share is calculated as the excess of the closing price of the common stock on the Company’s principal trading market over the exercise price of the option.

The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the six months ended September 30, 2022 and 2021, there were no such tax benefits associated with the exercise of stock options, as no stock options were exercised.