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

5. Stock-based Compensation

 

The Company recognized stock-based compensation expense of $58,848 and $34,431 in general and administrative expense in the Consolidated Statements of Operations for the three months ended September 30, 2023 and 2022, respectively. Stock-based compensation expense recognized for the six months ended September 30, 2023 and 2022 was $113,823 and $60,002, respectively. The total cost related to non-vested awards not yet recognized at September 30, 2023 totals $618,338 which is expected to be recognized over a weighted average of 2.64 years.

 

During the six months ended September 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. During the six months ended September 30, 2022, the Compensation Committee of the Board of Directors approved and the Company granted 31,000 stock options exercisable at $18.05 per share with an estimated fair value of $385,640. 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 six months ended September 30, 2023 and 2022. All such amounts represent the weighted average amounts.

 

   Six Months Ended September 30 
   2023   2022 
Grant-date fair value  $8.73   $18.05 
Volatility factor   56.5%   57.3%
Dividend yield   -    - 
Risk-free interest rate   3.44%   3.15%
Expected term (in years)   6.25    6.25 

 

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

 

   Number of Shares   Weighted Average Exercise Price   Weighted 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 September 30, 2023   170,750   $9.18    7.10   $375,525 
                     
Vested at September 30, 2023   90,500   $6.42    5.72   $448,753 
Exercisable at September 30, 2023   90,500   $6.42    5.72   $448,753 

 

During the six months ended September 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 six months ended September 30, 2022, no stock options were exercised.

 

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

 

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