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Stock-based Compensation
 3 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation

5. Stock-based Compensation

 

The Company recognized compensation expense of $54,975 and $25,571 related to vesting stock options in general and administrative expense in the Consolidated Statements of Operations for the first quarter of fiscal 2024 and 2023, respectively. The total cost related to non-vested awards not yet recognized at June 30, 2023 totals $677,185, which is expected to be recognized over a weighted average of 2.85 years.

 

During the three months ended June 30, 2023, the Compensation Committee of the Board of Directors approved and the Company granted 32,000 stock options exercisable at $12.68 per share with an estimated fair value of $279,360. 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. During the three months ended June 30, 2022, no stock options were granted.

 

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 three months ended June 30, 2023 and 2022. All such amounts represent the weighted average amounts.

 

   Three Months Ended 
   June 30 
   2023   2022 
Grant-date fair value  $8.73    - 
Volatility factor   56.5%   - 
Dividend yield   -    - 
Risk-free interest rate   3.44%   - 
Expected term (in years)   6.25    - 

 

The following table is a summary of stock options activity for the three months ended June 30, 2023:

 

   Number of Shares   Weighted Average Exercise Price Per Share   Weighted Aggregate Average Remaining Contract Life
in Years		   Intrinsic Value 
Outstanding at April 1, 2023   139,250   $8.36    7.04   $419,853 
Granted   32,000    12.68           
Exercised   (500)   5.93           
Forfeited or Expired   -    -           
Outstanding at June 30, 2023   170,750   $9.18    7.35   $483,098 
                     
Vested at June 30, 2023   75,250   $5.02    5.44   $526,328 
Exercisable at June 30, 2023   75,250   $5.02    5.44   $526,328 

 

During the three months ended June 30, 2023, stock options covering 500 shares were exercised with a total intrinsic value of $2,416. The Company received proceeds of $2,962 from these exercises. During the three months ended June 30, 2022, no stock options were exercised.

 

No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history for these types of awards. During the three months ended June 30, 2023 and 2022, there were no stock options forfeited or expired.

 

Outstanding options at June 30, 2023 expire between August 2024 and April 2033 and have exercise prices ranging from $3.34 to $18.05.