Note 2 - Equity Compensation Plans and Capital Stock

12 Months Ended

Mar. 31, 2017

Notes to Financial Statements

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

2.

   EQUITY COMPENSATION PLANS AND CAPITAL STOCK

On

September 1, 2016,

the Friedman Industries, Incorporated

2016

Restricted Stock Plan (the “Plan”) was approved by the Company’s shareholders. On

December 21, 2016,

the Company filed a Form S-

8

Registration Statement with the U.S. Securities and Exchange Commission related to the Plan. The Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) and continues indefinitely until terminated by the Board or until all shares allowed by the Plan have been awarded and earned. The aggregate number of shares of the Company’s Common Stock eligible for award under the Plan is

500,000

shares. Subject to the terms and provisions of the Plan, the Committee

may,

from time to time, select the employees to whom awards will be granted and shall determine the amount and applicable restrictions of each award. Forfeitures are accounted for upon their occurrence.

Restricted stock awards totaling

210,000

shares were granted on

January 4, 2017

with

five

year cliff vesting restrictions (i.e., vesting for

100%

of the awarded shares occurs only upon

January 4, 2022).

No

other shares have been awarded under the Plan. The grant date fair value of the awarded shares is

$1,444,800

and will be recognized as compensation expense over the

60

month requisite service period. The Company recorded compensation expense of

$72,240

in fiscal

2017

relating to stock awards issued under the Plan. In fiscal

2016,

the Company maintained

no

equity compensation plans.

The Company has

1,000,000

authorized shares of Cumulative Preferred Stock with a par value of

$1

 per share. The stock

may

be issued in

one

or more series, and the Board of Directors is authorized to fix the designations, preferences, rights, qualifications, limitations and restrictions of each series, except that any series must provide for cumulative dividends and must be convertible into Common Stock. There were

no

shares of Cumulative Preferred Stock issued as of

March 

31,

2017

or

March 

31,

2016.