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STOCK OPTIONS AND WARRANTS | 9 Months Ended
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Dec. 31, 2021
Share-based Payment Arrangement [Abstract] |
STOCK OPTIONS AND WARRANTS | NOTE 8 - STOCK OPTIONS AND WARRANTS During the nine months ended December 31, 2021 the Company issued 40,000 and 20,000 stock options, respectively, at an exercise price of $.29 and $.27, respectively to directors as compensation for their service. During the three and nine months ended December 31, 2021 the Company issued 50,000 stock options at an exercise price of $.22 to the Vice President of Sales and Marketing as compensation due under his fiscal 2021 incentive bonus plan. During the three and nine months ended December 31, 2020 the Company issued 100,000 stock options at an exercise price of $.29 to directors as compensation for their service. The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the assumptions outlined below. The expected volatility is based upon historical volatility of our stock and other contributing factors. The expected term is based upon observation of actual time elapsed between date of grant and exercise of options for all employees. The following inputs were used to value each option grant:
| ● | For the nine months ended December 31, 2021: expected dividend yield of 0%, risk-free interest rate between 0.43% and 0.96%, respectively with volatility between 149.5% and 157.0% respectively with an expected term of three years.
| ● | For the nine months ended December 31, 2020: expected dividend yield of 0%, risk-free interest rate of 0.18%, volatility of 146.7% and an expected term of three years.
THE SINGING MACHINE COMPANY, INC AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2021 and 2020 (Unaudited) A summary of stock option activity for the nine months ended December 31, 2021 is summarized below: SUMMARY OF STOCK OPTION ACTIVITY
|  | December 31, 2021 |
|  | Number of Options |  |  | Weighted Average Exercise Price |
Stock Options: |  |  |  |  |  |  |  |
Balance at beginning of period |  |  | 1,680,000 |  |  | $ | 0.32 |
Granted |  |  | 110,000 |  |  | $ | 0.25 |
Exercised |  |  | (80,000 | ) |  | $ | 0.18 |
Balance at end of period |  |  | 1,710,000 |  |  | $ | 0.33 |
Options exercisable at end of period |  |  | 1,600,000 |  |  | $ | 0.33 |
The following table summarizes information about employee stock options outstanding at December 31, 2021: SCHEDULE OF EMPLOYEE STOCK OPTIONS OUTSTANDING
Range of Exercise Price |  |  | Number Outstanding at December 31, 2021 |  |  | Weighted Average Remaining Contractural Life |  |  | Weighted Average Exercise Price |  |  | Number Exercisable at December 31, 2021 |  |  | Weighted Average Exercise Price |
$.12 - $.38 |  |  |  | 1,160,000 |  |  |  | 2.9 |  |  | $ | 0.24 |  |  |  | 1,050,000 |  |  | $ | 0.24 |
$.47 - $.55 |  |  |  | 550,000 |  |  |  | 5.2 |  |  | $ | 0.50 |  |  |  | 550,000 |  |  | $ | 0.50 |
-* | * |  |  | 1,710,000 |  |  |  |  |  |  |  |  |  |  |  | 1,600,000 |  |  |  |  |
* |  | Total number of options outstanding as of December 31, 2021 includes 650,000 options issued to three current and four former directors as compensation, and 1,090,000 options issued to key employees.
As of December 31, 2021, there was unrecognized expense of approximately $17,000 remaining on options currently vesting over time with approximately nine months remaining until these options are fully vested. The intrinsic value of vested options as of December 31, 2021 was approximately $40,000. As per the execution of the August 2021 private placement as disclosed in Note 2 and Note 10, common warrants and pre-funded warrants issued and outstanding as of December 31, 2021 are as follows: SCHEDULE OF COMMON STOCK WARRANTS ISSUED AND OUTSTANDING
|  | Number of Shares |
Warrants outstanding at March 31, 2021 |  |  | - |
Common warrants issued |  |  | 34,666,667 |
Pre-funded warrants issued |  |  | 16,833,333 |
Warrants outstanding at December 31, 2021 |  |  | 51,500,000 |
As of December 31, 2021, the Company’s warrants by expiration date were as follows: SCHEDULE OF WARRANTS EXPIRATION
Number of CommonWarrants |  |  | Number of Pre-funded Warrants |  |  | Exercise Price |  |  | Expiration Date
34,666,667 |  |  |  | - |  |  | $ | 0.35 |  |  | 9/15/2026
- |  |  |  | 16,833,333 |  |  | $ | 0.01 |  |  | N/A-*
34,666,667 |  |  |  | 16,833,333 |  |  |  |  |  |  |
* |  | Pre-funded warrants expire on the dates they are exercised.
All outstanding warrants are fully vested.

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