7. Stock-Based Compensation

6 Months Ended

Sep. 30, 2018

Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]

Stock-Based Compensation

Note 7. Stock-Based Compensation

The weighted average grant date fair values of options granted during the three months ended September 30, 2018 and 2017 was $1.96 and $5.58, respectively, and the weighted average grant date fair values of options granted during the six months ended September 30, 2018 and 2017 was $2.20 and $6.01, respectively.

Share-based awards compensation expense is as follows:

	Three Months				Six Months
	Ended				Ended
	September 30,				September 30,
	2018		2017		2018		2017
Cost of service revenue	$	30,000	$	49,000	$	65,000	$	93,000
Research and development		29,000		45,000		61,000		90,000
Selling, general and administrative		467,000		333,000		747,000		682,000
Total stock-based compensation	$	526,000	$	427,000	$	873,000	$	865,000

At September 30, 2018, there were unrecognized compensation costs of $1,450,000 related to stock options which is expected to be recognized over a weighted-average amortization period of 1.56 years. At September 30, 2017, there were unrecognized compensation costs of $2,999,000 related to stock options which is expected to be recognized over a weighted-average amortization period of 2.43 years.

At September 30, 2018, there were unrecognized compensation costs of $111,000 related to restricted stock which is expected to be recognized over a weighted-average amortization period of 1.53 years. At September 30, 2017, there were unrecognized compensation costs of $239,000 related to restricted stock which is expected to be recognized over a weighted-average amortization period of 1.69 years.

No income tax benefit has been recognized relating to stock-based compensation expense and no tax benefits have been realized from exercised stock options.

Stock-Based Award Activity

Stock options award activity is as follows:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Term		Aggregate Intrinsic Value
Outstanding at April 1, 2018		1,393,000		$	12.70
Options granted		159,000			2.64
Options forfeited		(33,000	)		6.70
Options expired		(3,000	)		18.44
Outstanding at September 30, 2018		1,516,000		$	11.76		7.02	$	–
Exercisable at September 30, 2018		1,109,000		$	13.75		6.48	$	–

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 $1.46 per share at September 30, 2018.

Restricted stock award activity is as follows:

	Number of Shares			Weighted Average Award Date Fair Value per Share
Unvested restricted stock awards outstanding at April 1, 2018		32,000		$	6.46
Restricted stock awards granted		28,000			1.90
Restricted stock awards forfeited		(4,000	)		6.97
Restricted stock awards vested		(16,000	)		5.50
Unvested restricted stock awards outstanding at September 30, 2018		40,000		$	3.71

The Company did not capitalize any cost associated with stock-based compensation.

The Company issues new shares of common stock upon exercise of stock options or release of restricted stock awards.

The Company issues new shares of common stock upon exercise of stock based awards.