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Note 4 - Accounting for Stock-based Compensation
9 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]

Note 4: Accounting for Stock-Based Compensation

 

The Company records compensation expense associated with restricted stock in accordance with ASC Topic 718 (“Share Based Payment”) (ASU 2016-09). The compensation expense related to all of the Company’s stock-based compensation arrangements is recorded as a component of general and administrative expenses. The Company had 875,825 restricted common shares issued under the 2016 Employee Equity Compensation Restricted Stock Plan (“2016 Employee Plan”) and 203,880 restricted common shares issued under the 2015 Outside Director Equity Compensation Restricted Stock Plan (“2015 Director Plan”) at December 31, 2021, all shares of which were issued subject to a restriction or forfeiture period that lapses ratably on the first, second, and third anniversaries of the date of grant, and the fair value of which is being amortized over the 1 to 3-year restriction period.

 

In December 2021, the Company issued 15,000 restricted shares to certain employees of the Company under the 2016 Employee Plan, with a fair value of $27.10 per share.

 

For the quarters ended December 31, 2021 and 2020, the Company recognized $1.4 million and $781,000, respectively, of compensation expense related to the 2016 Employee Plan and 2015 Director Plan. For the nine months ended December 31, 2021 and 2020, the Company recognized $3.0 million and $2.3 million, respectively, of compensation expense related to the 2016 Employee Plan and 2015 Director Plan. At December 31, 2021 and 2020, there was $14.4 million and $3.6 million of unrecognized compensation cost related to the non-vested restricted stock awards, respectively, which is expected to be recognized over the next 3 years. All stock-based compensation expense is recognized as a payroll-related expense and it is included within the general and administrative expenses line item within the Company’s income statement, and the offset is included in the additional paid-in capital line item of the Company’s balance sheet. At December 31, 2021 and 2020, there were approximately 749,000 and 177,000 non-vested restricted shares, respectively.