Note

12:

Stock Based Compensation

November 2013,

the Company’s shareholders approved a new Equity Incentive Plan (the

“2013

Equity Incentive Plan’’). The

2013

Equity Incentive Plan allows for up to

148,120

shares to be issued to employees, executive officers or Directors in the form of restricted stock, and up to

370,300

shares to be issued to employees, executive officers or Directors in the form of stock options. At

June 30, 2017,

there were

83,900

restricted stock awards issued and outstanding and

247,850

stock option awards granted under the

2013

Equity Incentive Plan.

Stock Options:

Under the above plan, the exercise price for stock options is the market price at date of grant. The maximum option term is

ten

years and the options granted shall vest in

five

equal annual installments of

20%

with the

first

installment becoming exercisable on the

first

anniversary of the date of grant and succeeding installments on each anniversary thereafter. The Company plans to issue new shares to satisfy share option exercises. The total cost that has been incurred for the stock option plan was

$57,392

and

$52,301

for the

three

months ended

June 30, 2017

and

2016,

respectively.

The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical data. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are

not

transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury rate equal to the expected term of the option in effect at the time of the grant

The fair value of options granted to date was determined using the following weighted-average assumptions as of grant date.

Grant Date	Number of Options Granted		Risk Free Interest Rate			Expected Term (in years)		Expected Stock Price Volatility			Dividend Yield			Fair Value of Options Granted

February 3, 2014		225,150		2.07	%		7.0		27.30	%		0.00	%	$	4.65
November 1, 2016		19,000		1.61	%		7.0		27.17	%		0.00	%	$	4.35
February 3, 2017		3,700		2.27	%		7.0		27.26	%		0.00	%	$	5.18

The following tables summarize the Company’s stock option activity and related information for the periods ended:

Three months ended June 30, 2017:	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Outstanding at April 1, 2017		242,350	$	13.84		7.1
Granted		-		-		-
Exercised		-		-		-
Forfeited, exchanged or expired		-		-		-
Outstanding at June 30, 2017		242,350	$	13.84		6.8

Vested at June 30, 2017		131,790	$	13.85		6.6

Fiscal year ended March 31, 2017:	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Outstanding at April 1, 2016		219,650	$	13.85		7.8
Granted		22,700		13.78		10.0
Exercised		-		-		-
Forfeited, exchanged or expired		-		-		-
Outstanding at March 31, 2017		242,350	$	13.84		7.1

Vested at March 31, 2017		131,790	$	13.85		6.8

As of

June 30, 2017

there was

$420,448

of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of

2.2

years. The intrinsic value of a stock option is the amount that the market value of the underlying stock exceeds the exercise price of the option. Based upon a fair market value of

$15.00

June 30, 2017,

the options outstanding had an intrinsic value of

$281,098.

Restricted Stock:

The specific terms of each restricted stock award are determined by the Compensation Committee at the date of the grant. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. Restricted stock awards granted shall vest in

five

equal annual installments of

20%

with the

first

installment becoming vested on the

first

anniversary of the date of grant and succeeding installments on each anniversary thereafter.

The following table presents a summary of the activity in the Company’s restricted stock for the periods ended:

			Weighted-Average
June 30, 2017:	Shares		Fair Value
Nonvested shares at April 1, 2017		36,220	$	13.76
Granted		-		-
Vested		-		-
Forfeited		-		-
Nonvested shares at June 30, 2017		36,220	$	13.76

Fair Value of shares vested at June 30, 2017	$	715,200

				Weighted-Average
March 31, 2017:	Shares			Fair Value
Nonvested shares at April 1, 2016		50,600		$	13.76
Granted		2,000			13.93
Vested		(16,380	)		13.78
Forfeited		-			-
Nonvested shares at March 31, 2017		36,220		$	13.76

Fair Value of shares vested at March 31, 2017	$	731,888

The Company recorded restricted stock awards expense of

$57,819

and

$56,426

during the

three

months ended

June 30, 2017

and

2016,

respectively. As of

June 30, 2017,

there was

$398,902

of total unrecognized compensation cost related to nonvested shares granted under the

2013

stock incentive plan. The cost is expected to be recognized over a weighted-average period of

1.9

years.