Note 7 - Stock-based Compensation

9 Months Ended

Dec. 31, 2015

Notes to Financial Statements

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

7. Stock- Based Compensation

The Company maintains a stock option plan for the benefit of certain eligible employees and directors. In addition, Delphax maintains a number of stock option plans. Compensation expense is recognized for stock options based on their grant-date fair values over the requisite service period. The Company and Delphax use the Black-Scholes option pricing model to value stock options. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate and dividend yield. Many of these assumptions are judgmental and highly sensitive in the determ

ination of compensation expense.

No

options were granted or exercised under the Company

’s stock option plan during the

three

and

nine

-month periods ended

December 31, 2015.

During the

three

-month period ended

December 31, 2014,

options for

15,000

shares were exercised, options for

2,500

shares were repurchased by the Company and cancelled, and options for

6,000

shares expired. For the

nine

-month period ended

December 31, 2014,

options for

15,000

shares were exercised, options for

32,000

shares were repurchased by the Company and cancelled, and options for

6,000

shares expired. Stock-based compensation expense in the amount of

$0

and

$8,958

was recognized for the Company’s stock option plan in the

nine

-month periods ended

December 31, 2015

and

2014,

respectively. At

December 31, 2015,

there was

no

unrecognized compensation expense related to the Company stock option plan.

As noted above, Delphax maintains a number of stock option plans. These plans were in place at the time of the Company

’s acquisition of interests in Delphax. Subsequent to this acquisition, Delphax granted

1.2

million non-qualified options to purchase shares of its common stock to certain of its employees at an exercise price of

$0.33

per share. For the period from the acquisition through

December 31, 2015

there was approximately

$31,000

of stock-based compensation expense recorded related to Delphax’s stock-based compensation arrangements. As of

December 31, 2015,

Delphax had a total of approximately

$373,000

in unrecognized compensation cost associated with its stock option plans.