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Stock-Based Compensation | 12 Months Ended
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Mar. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | NOTE 13 – Stock-Based Compensation 2016 Stock Plan On September 2, 2016, upon recommendation of the board, the stockholders approved the Company’s 2016 Equity Incentive Plan (the “2016 Plan”). The 2016 Plan is effective as of September 2, 2016 and has a ten year term. The 2016 Plan provides for the grant of options, including incentive stock options as defined in Section 422 of the Internal Revenue Code to employees, stock appreciation rights, restricted awards, performance share awards and performance compensation awards to employees, non-employee directors, advisors and consultants. Options issued under the 2016 Plan generally have a ten-year term. In accordance with the 2016 Plan, the stated exercise price of an employee incentive stock option or a non-statutory stock option shall not be less than 100% of the estimated fair market value of a share of common stock on the date of grant. An employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company shall not be eligible for the grant of an employee incentive stock option unless such grant satisfies the requirements of Section 422(c)(5) of the Internal Revenue Code. Shares subject to awards that expire unexercised or are forfeited or terminated for any other reason will again become available for issuance under the 2016 Plan. No participant in the 2016 Plan can receive more than 11,112 option grants, or other awards with respect to more than 13,334 shares in the aggregate in any calendar year. The board has authorized 2,222 of the Company’s common stock for issuance under the 2016 Plan, in addition to automatic increases provided for in the 2016 Plan through April 1, 2026. The number of shares of the Company’s common stock reserved for issuance under the 2016 Plan will automatically increase, with no further action by the stockholders, at the beginning of each fiscal year by an amount equal to the lesser of (i) 8% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding year, or (ii) an amount determined by the Company’s board of directors. During the year ended March 31, 2019, the board of directors approved an increase of 243 shares authorized for issuance. During the year ended March 31, 2020, the board of directors approved an increase of 5,266 shares authorized for issuance. During the year ended March 31, 2022, the board of directors approved an increase of 8,372 shares authorized for issuance. During the year ended March 31, 2025, the board of directors approved an increase of 62,429 shares authorized for issuance. At March 31, 2025 there were 9,670 shares available for future issuance. 2021 Stock Plan On September 21, 2021, upon recommendation of the board, the stockholders approved the Company’s 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan is effective as of September 21, 2021 and has a five year term. The 2021 Plan provides for the grant of options, including incentive stock options as defined in Section 422 of the Internal Revenue Code to employees, stock appreciation rights, restricted awards, performance share awards and performance compensation awards to employees, non-employee directors, advisors and consultants. Options issued under the 2021 Plan generally have a ten-year term. In accordance with the 2021 Plan, the stated exercise price of an employee incentive stock option or a non-statutory stock option shall not be less than 100% of the estimated fair market value of a share of common stock on the date of grant. An employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company shall not be eligible for the grant of an employee incentive stock option unless such grant satisfies the requirements of Section 422(c)(5) of the Internal Revenue Code. Shares subject to awards that expire unexercised or are forfeited or terminated for any other reason will again become available for issuance under the 2021 Plan. The board has authorized 50,000 shares of the Company’s common stock for issuance under the 2021 Plan. At March 31, 2025, there were no shares available for future issuance. 2024 Stock Plan On August 23, 2024, upon recommendation of the board, the stockholders approved the Company’s 2024 Equity Incentive Plan (the “2024 Plan”). The 2024 Plan is effective as of August 23, 2024 and has a five year term. The 2024 Plan provides for the grant of options, including incentive stock options as defined in Section 422 of the Internal Revenue Code to employees, stock appreciation rights, restricted awards, performance share awards and performance compensation awards to employees, non-employee directors, advisors and consultants. Options issued under the 2024 Plan generally have a ten-year term. In accordance with the 2024 Plan, the stated exercise price of an employee incentive stock option or a non-statutory stock option shall not be less than 100% of the estimated fair market value of a share of common stock on the date of grant. An employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company shall not be eligible for the grant of an employee incentive stock option unless such grant satisfies the requirements of Section 422(c)(5) of the Internal Revenue Code. Shares subject to awards that expire unexercised or are forfeited or terminated for any other reason will again become available for issuance under the 2024 Plan. The board has authorized 50,000 shares of the Company’s common stock for issuance under the 2024 Plan, in addition to automatic increases provided for in the 2024 Plan through April 1, 2029. The number of shares of the Company’s common stock reserved for issuance under the 2024 Plan will automatically increase, with no further action by the stockholders, at the beginning of each fiscal year by an amount equal to the lesser of (i) 5% of the outstanding shares of the Company’s common stock on the last day of the immediately preceding year, or (ii) an amount determined by the Company’s board of directors. At March 31, 2025, there were 5,000 shares available for future issuance. Stock-Based Compensation The Company issues service, performance and market-based stock options to employees and non-employees. The Company estimates the fair value of service and performance stock option awards using the Black-Scholes option pricing model. The Company estimates the fair value of market-based stock option awards using a Monte-Carlo simulation. Compensation expense for stock option awards is amortized on a straight-line basis over the awards’ vesting period. Compensation expense includes the impact of forfeitures as they are incurred. The expected term of the stock options represents the average period the stock options are expected to remain outstanding and is based on the expected term calculated using the approach prescribed by SEC Staff Accounting Bulletin No. 110 for “plain vanilla” options. The expected stock price volatility for the Company’s stock options was determined by using an average of the historical volatilities of the Company. The Company will continue to analyze the stock price volatility and expected term assumptions as more data for the Company’s common stock and exercise patterns become available. The risk-free interest rate assumption is based on the U.S. Treasury instruments whose term was consistent with the expected term of the Company’s stock options. The expected dividend assumption is based on the Company’s history and expectation of dividend payouts. The Company estimated the fair value of employee and non-employee stock options using the Black-Scholes option pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service periods of the respective awards. The fair value of employee stock options was estimated using the following weighted-average assumptions:
Schedule of weighted-average assumptions of fair value of employee stock options |  |  |  |  |  |
|  | Year Ended March 31, |
|  | 2025 |  |  | 2024 |
Fair value of the Company’s common stock on date of grant |  | $ | 2.68 |  |  | $ | 0.19 |
Expected term |  |  | 5.68 yrs |  |  |  | 5.56 yrs |
Risk-free interest rate |  |  | 4.57% |  |  |  | 3.87% |
Dividend yield |  |  | 0.00% |  |  |  | 0.00% |
Volatility |  |  | 109.91% |  |  |  | 98.40% |
Fair value of options granted |  | $ | 2.23 |  |  | $ | 0.15 |
During the years ended March 31, 2025 and 2024, the Company incurred $224,000 and $516,000, respectively of stock-based compensation expense. All stock-based compensation expense incurred is included in selling, general and administrative expense in the accompanying consolidated statements of comprehensive loss. At March 31, 2025, there were unrecognized compensation costs of $250,000 related to stock options which is expected to be recognized over a weighted-average amortization period of 1.58 years. Stock-Based Award Activity Stock-based awards outstanding at March 31, 2025 under the various plans are as follows:
Schedule of stock based awards outstanding by plan |  |  |
Plan |  | Stock Options |
2011 Plan |  |  | 3,998 |
2016 Plan |  |  | 38,942 |
2021 Plan |  |  | 30,141 |
|  |  | 73,081 |
Stock options award activity is as follows:
Schedule of options activity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Number of Shares |  |  | Weighted- Average Exercise Price |  |  | Weighted- Average Contractual Term |  |  | Aggregate Intrinsic Value |
Outstanding at April 1, 2024 |  |  | 51,675 |  |  | $ | 62.60 |  |  |  |  |  |  |  |  |
Options granted |  |  | 49,500 |  |  |  | 2.68 |  |  |  |  |  |  |  |  |
Options exercised |  |  | (27,750 | ) |  |  | 2.99 |  |  |  |  |  |  |  |  |
Options forfeited |  |  | (250 | ) |  |  | 3.60 |  |  |  |  |  |  |  |  |
Options expired |  |  | (94 | ) |  |  | 1,485.96 |  |  |  |  |  |  |  |  |
Outstanding at March 31, 2025 |  |  | 73,081 |  |  | $ | 43.27 |  |  |  | 8.82 |  |  | $ | 2.19 |
Exercisable at March 31, 2025 |  |  | 39,751 |  |  | $ | 74.86 |  |  |  | 7.71 |  |  | $ | 2.19 |
The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s common stock, or $2.19 and $3.40 per share at March 31, 2025 and 2024, respectively. Restricted stock award activity is as follows:
Schedule of unvested restricted stock activity |  |  |  |  |  |  |  |
|  | Number of Shares |  |  | Weighted Average Award Date Fair Value per Share |
Unvested restricted stock awards outstanding at April 1, 2024 |  |  | – |  |  | $ | – |
Restricted stock awards granted |  |  | 54,538 |  |  |  | 2.92 |
Restricted stock awards vested |  |  | (9,538 | ) |  |  | 4.08 |
Unvested restricted stock awards outstanding at March 31, 2025 |  |  | 45,000 |  |  | $ | 2.68 |
A tax benefit of $123,000 has been recognized relating to stock-based compensation as a result of non-qualified stock options and restricted stock exercised during the year ending March 31, 2025. The Company issues new shares of common stock upon exercise of stock options or release of restricted stock awards.

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