Equity Incentive Plans

6 Months Ended

Sep. 30, 2024

Equity Incentive Plans [Abstract]

EQUITY INCENTIVE PLANS

Note 7 EQUITY INCENTIVE PLANS:

2020 Equity Incentive Plan

On November 18, 2020, the Board of Directors approved the Company’s 2020 Equity Incentive Plan (the “2020 Plan”) for submission to shareholders at the 2020 annual meeting of shareholders. On December 16, 2020, the Company’s shareholders approved the adoption of the 2020 Plan, which provides for the grant of stock options and restricted stock awards to purchase up to 750,000 shares of the Company’s common stock to award in the future as incentive compensation to employees, senior management and members of the Board of Directors of the Company.

Options granted to employees under the 2020 Plan may be designated as options which qualify for incentive stock option treatment under Section 422A of the Internal Revenue Code, or options which do not qualify (non-qualified stock options).

Under the 2020 Plan, the exercise price of an option designated as an incentive stock option shall not be less than the fair market value of the Company’s common stock on the day the option is granted. In the event an option designated as an incentive stock option is granted to a ten percent (10%) or greater shareholder, such exercise price shall be at least 110 percent (110%) of the fair market value of the Company’s common stock and the option must not be exercisable after the expiration of ten years from the day of the grant. The 2020 Plan also provide that holders of options that wish to pay for the exercise price of their options with shares of the Company’s common stock must have beneficially owned such stock for at least six months prior to the exercise date.

Exercise prices of non-incentive stock options may not be less than the fair market value of the Company’s common stock.

The aggregate fair market value of shares subject to options granted to a participant(s), which are designated as incentive stock options, and which become exercisable in any calendar year, shall not exceed $100,000.

Stock-based compensation expense

Stock-based compensation expense is recorded in selling, general and administrative expenses included in the condensed statements of operations. For the three months ended September 30, 2024 and 2023, stock-based compensation expense was $0 and $62,550, respectively. For the six months ended September 30, 2024 and 2023, stock-based compensation expense was $125,100 and $192,150, respectively.

As of September 30, 2024, there was no unrecognized compensation expense related to unamortized stock options. It is the Company’s policy that any unrecognized stock-based compensation cost would be adjusted for actual forfeitures as they occur.

The following table provides the stock option activity for the six months ended September 30, 2024:

	Shares		Weighted Avg. Exercise Price		Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in thousands)
Balance as of April 1, 2024		502,217	$	13.41		5.21	$	4
Granted		45,000	$	5.65
Exercised		-		-
Forfeited or Expired		-		-
Balance as of September 30, 2024		547,217	$	12.78		5.11	$	940
Exercisable as of September 30, 2024		547,217	$	12.78		5.11	$	940

The weighted average grant date fair value per share was $2.78 and $3.49 for the six months ended September 30, 2024 and 2023, respectively.

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e., the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, times the number of shares) that would have been received by the option holders had all option holders exercised their in-the-money options on those dates.