STOCK BASED COMPENSATION

9 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

NOTE 13 - STOCK BASED COMPENSATION

Our board of directors, upon the recommendation of the previously constituted compensation committee of our board of directors, approved the 2016 TechPrecision Equity Incentive Plan, or the 2016 Plan, on November 10, 2016. Our stockholders approved the 2016 Plan at the Company’s Annual Meeting of Stockholders on December 8, 2016, and it applies to awards granted after that date. The 2016 Plan provides for a share reserve of 5,000,000 shares of common stock.

On July 11, 2018, we granted stock options to our chief executive officer, or CEO, and our chief financial officer, or CFO, to collectively purchase 150,000 shares of common stock at an exercise price of $0.80 per share. The options vested immediately on the grant date. The aggregate fair value of the stock options expensed during the nine months ended December 31, 2018 was $46,658. The assumptions utilized for options granted on July 11, 2018 were 104.9% for volatility, 2.58% for the risk-free interest rate, and approximately two years for the expected life.

At December 31, 2018, there were

1,332,332

shares available for grant under the 2016 Plan. The following table summarizes information and stock option activity for the nine months ended December 31, 2018:

	Number Of			Weighted Average		Aggregate Intrinsic		Weighted Average Remaining Contractual Life
	Options			Exercise Price		Value		(in years)
Outstanding at 3/31/2018		3,394,668		$	0.417	$	698,200		6.73
Granted		150,000		$	0.800		—		—
Canceled		(2,000	)	$	1.960		—		—
Outstanding at 12/31/2018		3,542,668		$	0.432	$	2,039,662		6.56
Vested or expected to vest at 12/31/2018		3,542,668		$	0.432	$	2,039,662		6.56
Exercisable and vested at 12/31/2018		3,542,668		$	0.432	$	2,039,662		6.56

The total fair value of shares vested during the period was $96,519. The following table summarizes the status of our stock options outstanding but not vested for the nine months ended December 31, 2018:

	Number of Options			Weighted Average Exercise Price
Outstanding but not vested at 3/31/2018		100,000		$	0.60
Granted		150,000		$	0.80
Vested		(250,000	)	$	0.72
Outstanding but not vested at 12/31/2018		—		$	—

Other information relating to stock options outstanding at December 31, 2018 is as follows:

Range of Exercise Prices:	Options Outstanding		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Options Exercisable		Weighted Average Exercise Price
$0.01-$1.00		3,371,668		7.06	$	0.37		3,371,668	$	0.37
$1.01-$1.96		171,000		1.98	$	1.58		171,000	$	1.58
Totals		3,542,668						3,542,668

On December 7, 2018 we granted 25,000 shares of restricted stock under the 2016 Plan each to the board members and 12,500 of restricted stock to our CEO and CFO.

The stock-based compensation expense of $

122,500

for service-based restricted stock was measured at fair value on the date of grant based on the number of shares expected to vest and the quoted market price of the Company’s common stock.

The shares of restricted stock fully vest and cease to be subject to forfeiture on December 7, 2019, one year following the grant date. Each grantee must be serving as an executive officer on the vesting date and must have been continuously serving in such capacity from the grant date through the vesting date for the shares of restricted stock to vest. Prior to the vesting date, the grantee is not permitted to sell, transfer, pledge, assign or otherwise encumber the shares of restricted stock and if the grantee’s service with the Company terminates prior to the vesting date, the grantee’s restricted stock will be forfeited automatically. The aggregate fair value of the restricted stock expensed during the three months ended December 31, 2018 was $10,209. At December 31, 2018 there was $

112,291

of total unrecognized compensation cost related to the restricted stock awards.