STOCK OPTIONS

9 Months Ended

Dec. 31, 2019

Equity [Abstract]

STOCK OPTIONS

NOTE 7 - STOCK OPTIONS

In April 2018, we granted an additional 40,000 options to purchase shares of our common stock at $0.11 per share to certain members of our BOD. In April 2018, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In July 2018, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In October 2018, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In January 2019, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In April 2019, we granted an additional 40,000 options to purchase shares of our common stock at $0.17 per share to certain members of our BOD. In April 2019, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In July 2019, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements. In October 2019, we granted 200,000 options to purchase shares of our common stock at $0.25 per share to certain our CEO and CFO per their employment agreements.

In the quarter ended June 30, 2018, 2.85 million options were cancelled. Due to the unsuccessful outcome these options were cancelled.

We will record stock-based compensation expense over the requisite service period, which in our case approximates the vesting period of the options. During the three and nine months ended December 31, 2019, the Company recorded $23,600 and $142,000, respectively, in compensation expense arising from the vesting of options, respectively. The Company assumed all stock options issued during the quarter will vest. Though these expenses result in a deferred tax benefit, we have a full valuation allowance against the deferred tax benefit.

The Company adopted the detailed method provided in FASB ASC Topic 718, “Compensation – Stock Compensation,” for calculating the beginning balance of the additional paid-in capital pool (“APIC pool”) related to the tax effects of employee stock-based compensation, and to determine the subsequent impact on the APIC pool and Consolidated Statements of Cash Flows of the income tax effects of employee stock-based compensation awards that are outstanding.

The fair value of each stock option granted is estimated on the grant date using the Black-Scholes option pricing model (“BSOPM”). The BSOPM has assumptions for risk free interest rates, dividends, stock volatility and expected life of an option grant. The risk-free interest rate is based upon market yields for United States Treasury debt securities at a 7-year constant maturity. Dividend rates are based on the Company’s dividend history. The stock volatility factor is based on the last 60 days of market prices prior to the grant date. The expected life of an option grant is based on management’s estimate. The fair value of each option grant, as calculated by the BSOPM, is recognized as compensation expense on a straight-line basis over the vesting period of each stock option award.

These assumptions were used to determine the FV of stock options granted:

Dividend yield		0.0%
Volatility		330%
Average expected option life	5 years
Risk-free interest rate		0.70%

The following table summarizes activity in the Company's stock option grants for the years ended March 31, 2019 and 2020:

	Number of Shares		Weighted Average Price Per Share
Balance at March 31, 2018		6,730,000	$	0.32
Granted		840,000	$	0.25
Cancelled		(2,850,000)	$	0.28
Balance at March 31, 2019		4,720,000	$	0.33
Granted		640,000	$	0.25
Cancelled		(160,000)	$	0.59
Balance at December 31, 2019		5,200,000	$	0.28

The following summarizes pricing and term information for options issued to employees and directors outstanding as of December 31, 2019:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number Outstanding at December 31, 2019		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable at December 31, 2019		Weighted Average Exercise Price
$1.00		40,000		.25		$1.00		40,000		$1.00
$0.75		40,000		1.25		$0.75		40,000		$0.75
$0.50		40,000		4.25		$0.50		40,000		$0.50
$0.49		40,000		5.25		$0.49		40,000		$0.49
$0.45		40,000		3.25		$0.45		40,000		$0.45
$0.27		40,000		2.25		$0.27		40,000		$0.28
$0.25		4,840,000		7.25		$0.25		4,840,000		$0.25
$0.19		40,000		8.75		$0.19		40,000		$0.19
$0.15		40,000		7.50		$0.15		40,000		$0.15
$0.075		40,000		7.50		$0.075		40,000		$0.075
Balance at December 31, 2019		5,200,000		5.85		$0.27		5,200,000		$0.27