Note

11:

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

September 30, 2018,

there were

92,701

restricted stock awards issued and outstanding and

268,204

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

$61,514

and

$123,028

for the

three

and

six

months ended

September 30, 2018

and

$57,392

and

$114,784

for the

three

and

six

months ended

September 30, 2017,

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
April 1, 2018		20,354		2.67	%		7.0		19.61	%		0.00	%	$	4.05

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

September 30, 2018:	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Outstanding at April 1, 2018		242,350	$	13.84		6.1
Granted		20,354		14.25		9.5
Exercised		-		-		-
Forfeited, exchanged or expired		-		-		-
Outstanding at September 30, 2018		262,704	$	13.87		5.9

Vested at September 30, 2018		180,260	$	13.85		5.4

March 31, 2018:	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 March 31, 2018		242,350	$	13.84		6.1

Vested at March 31, 2018		180,260	$	13.84		5.8

As of

September 30, 2018,

there was

$207,678

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

2.0

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

$14.31

September 30, 2018,

the options outstanding had an intrinsic value of

$117,650.

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
September 30, 2018:	Shares			Fair Value
Nonvested shares at April 1, 2018		19,440		$	13.74
Granted		8,801			14.25
Vested		(80	)		14.00
Forfeited		-			-
Nonvested shares at September 30, 2018		28,161		$	13.90

Fair Value of shares vested at September 30, 2018	$	923,567

				Weighted-Average
March 31, 2018:	Shares			Fair Value
Nonvested shares at April 1, 2017		36,220		$	13.76
Granted		-			-
Vested		(16,780	)		13.78
Forfeited		-			-
Nonvested shares at March 31, 2018		19,440		$	13.74

Fair Value of shares vested at March 31, 2018	$	918,555

The Company recorded restricted stock awards expense of

$64,089

and

$128,178

during the

three

and

six

months ended

September 30, 2018

and

$57,819

and

$115,638

during the

three

and

six

months ended

September 30, 2017,

respectively. As of

September 30, 2018,

there was

$222,681

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.