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Stock-Based Compensation | 12 Months Ended
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Mar. 31, 2023
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
STOCK-BASED COMPENSATION | NOTE 8 – STOCK-BASED COMPENSATION Amended 2017 Equity Incentive Plan In October 2017, the Company’s Board approved the 2017 Equity Incentive Plan (the Plan) 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. In January 2023, the Company’s stockholders approved an increase in the number of shares reserved for issuance under the Plan by an additional 2,000,000 shares. 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. The unamortized compensation cost, as of March 31, 2023, was $3,268,600 related to stock options and is expected to be recognized as expense over a weighted-average period of approximately two years. During the year ended March 31, 2023, the Company granted options to purchase 1,006,074 shares of its common stock to employees, directors and consultants. The options had 10-year terms and 123,407 options vested immediately when granted. The weighted-average grant date fair value of stock options granted during the years ended March 31, 2023 and 2022 was $2.85 and $10.28, respectively. The following assumptions were used in the fair-value method calculations:
|  |  | Year Ended March 31,
|  |  | 2023 |  |  |  | 2022 |
Risk-free interest rates |  |  | 2.82% - 4.06% |  |  |  | 0.8% - 2.42% |
Volatility |  |  | 83% - 223% |  |  |  | 89% - 370% |
Expected life (years) |  |  | 5.0 - 5.7 |  |  |  | 5.0 - 6.2 |
Dividend yield |  |  | — |  |  |  | — |
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. The expected volatility is based on the historical volatility of the Company’s stock price. 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 Plan is presented below:
|  |  |  |  | Options Outstanding |
|  | Shares Available for Grant |  |  | Number of Shares |  |  | Weighted Average Exercise Price |
Balance at March 31, 2021 |  |  | 136,082 |  |  |  | 1,197,252 |  |  | $ | 5.25 |
Additional shares authorized under the Plan |  |  | 1,333,334 |  |  |  | — |  |  |  | — |
Options granted |  |  | (827,427 | ) |  |  | 827,427 |  |  |  | 10.39 |
Share awards |  |  | (26,497 | ) |  |  | — |  |  |  | — |
Options cancelled and returned to the Plan |  |  | 373,974 |  |  |  | (373,974 | ) |  |  | 10.73 |
Balance at March 31, 2022 |  |  | 989,466 |  |  |  | 1,650,705 |  |  |  | 6.58 |
Additional shares authorized under the Plan |  |  | 2,000,000 |  |  |  | — |  |  |  | — |
Options granted |  |  | (1,006,074 | ) |  |  | 1,006,074 |  |  |  | 3.15 |
Share awards |  |  | (26,789 | ) |  |  | — |  |  |  | — |
Options cancelled and returned to the Plan |  |  | 175,689 |  |  |  | (175,689 | ) |  |  | 6.48 |
Balance at March 31, 2023 |  |  | 2,132,292 |  |  |  | 2,481,090 |  |  | $ | 5.19 |
There were no stock options exercised during the years ended March 31, 2023 and 2022. The Company issued 26,789 shares to its non-employee directors under the Company’s outside director compensation plan and approximately $86,048 was recorded as stock-based compensation expense for these share awards during the year ended March 31, 2023. The following table summarizes the range of outstanding and exercisable options as of March 31, 2023:
|  | Options Outstanding |  |  | Options Exercisable |
|  |  |  |  | Weighted |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Average |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  | Remaining |  |  | Weighted |  |  |  |  |  | Weighted |  |  |  |
|  |  |  |  | Contractual |  |  | Average |  |  |  |  |  | Average |  |  | Aggregate |
|  | Number |  |  | Life |  |  | Exercise |  |  | Number |  |  | Exercise |  |  | Intrinsic |
Range of Exercise Price |  | Outstanding |  |  | (in Years) |  |  | Price |  |  | Exercisable |  |  | Price |  |  | value |
$1.44 – $3.95 |  |  | 982,358 |  |  |  | 7.78 |  |  | $ | 2.05 |  |  |  | 531,797 |  |  | $ | 2.04 |  |  | $ | 319 |
$4.18 - $7.51 |  |  | 969,600 |  |  |  | 8.05 |  |  |  | 5.46 |  |  |  | 572,600 |  |  |  | 6.32 |  |  |  | — |
$8.61 - $17.70 |  |  | 529,132 |  |  |  | 8.25 |  |  |  | 10.53 |  |  |  | 379,634 |  |  |  | 10.49 |  |  |  | — |
|  |  | 2,481,090 |  |  |  | 7.99 |  |  | $ | 5.19 |  |  |  | 1,484,031 |  |  | $ | 5.87 |  |  | $ | 319 |
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 at March 31, 2023.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent + Details
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