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Stock-based Compensation

9 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

4. Stock-based Compensation

The Company recognized stock-based compensation expense of $8,125 and $8,104 in general and administrative expense in the Consolidated Statements of Operations for the three months ended December 31, 2019 and 2018, respectively. Stock-based compensation expense recognized for the nine months ended December 31, 2019 and 2018 was $24,375 and $14,552, respectively. The total cost related to non-vested awards not yet recognized at December 31, 2019 totals approximately $87,636 which is expected to be recognized over a weighted average of 2.70 years.

During the nine months ended December 31, 2019, no stock options were granted. During the nine months ended December 31, 2018, the Compensation Committee of the Board of Directors approved and the Company granted 40,000 stock options exercisable at $4.84 per share. These options are exercisable at a price not less than the fair market value of the stock at the date of grant, have an exercise period of ten years and generally vest over four years.

Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the nine months ended December 31, 2019 and 2018. All such amounts represent the weighted average amounts.

	Nine Months Ended
	December 31
	2019		2018
Grant-date fair value		-	$	3.25
Volatility factor		-		55.26	%
Dividend yield		-		-
Risk-free interest rate		-		2.91	%
Expected term (in years)		-		6.25

The following table is a summary of activity of stock options for the nine months ended December 31, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contract Life in Years
Outstanding at April 1, 2019		185,700	$	6.18		4.68
Granted		-		-
Exercised		-		-
Forfeited or Expired		-		-
Outstanding at December 31, 2019		185,700	$	6.18		3.93

Vested at December 31, 2019		155,700	$	6.44		3.01
Exercisable at December 31, 2019		155,700	$	6.44		3.01

During the nine months ended December 30, 2019, no stock options were exercised. During the nine months ended December 31, 2018, stock options covering 2,900 shares were exercised with a total intrinsic value of $6,575. The Company received proceeds of $18,241 from these exercises.

No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history of these types of awards. There were no stock options forfeited or expired during the nine months ended December 31, 2019 and 2018.

Outstanding options at December 31, 2019 expire between August 2020 and September 2028 and have exercise prices ranging from $4.84 to $7.00.