Stock-based Compensation

9 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-based Compensation

4. Stock-based Compensation

The Company recognized stock-based compensation expense of $25,570 and $13,865 in general and administrative expense in the Consolidated Statements of Operations for the three months ended December 31, 2021 and 2020, respectively. Stock-based compensation expense recognized for the nine months ended December 31, 2021 and 2020 was $62,003 and $41,813, respectively. The total cost related to non-vested awards not yet recognized at December 31, 2021 totals approximately $239,677 which is expected to be recognized over a weighted average of 2.57 years.

During the nine months ended December 31, 2021, the Compensation Committee of the Board of Directors approved and the Company granted 31,000 stock options exercisable at $8.51 per share with an estimated fair value of $187,550. During the nine months ended December 31, 2020, no stock options were granted. These options are exercisable at a price not less than the fair market value of the stock at the date of grant, have an exercise period of ten years and generally vest over four years.

Included in the following table is a summary of the grant-date fair value of stock options granted and the related assumptions used in the Binomial models for stock options granted during the nine months ended December 31, 2021 and 2020. All such amounts represent the weighted average amounts.

	NIne Months Ended
	December 31
	2021			2020
Grant-date fair value	$	6.05			-
Volatility factor		65.38	%		-
Dividend yield		-			-
Risk-free interest rate		0.92	%		-
Expected term (in years)		6.25			-

The following table is a summary of activity of stock options for the nine months ended December 31, 2021:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Life in Years		Intrinsic Value
Outstanding at April 1, 2021		156,000		$	5.28		5.53	$	555,100
Granted		31,000			8.51
Exercised		(45,000	)		6.57
Forfeited or Expired		-			-
Outstanding at December 31, 2021		142,000		$	5.58		6.78	$	539,850
Vested at December 31, 2021		70,250		$	5.35		4.94	$	282,775
Exercisable at December 31, 2021		70,250		$	5.35		4.94	$	282,775

During the nine months ended December 31, 2021, stock options covering 45,000 shares were exercised with a total intrinsic value of $241,226. The Company received proceeds of $295,640 from these exercises. During the nine months ended December 31, 2020, stock options covering 1,500 shares were exercised with a total intrinsic value of $135. The Company received proceeds of $9,435 from these exercises.

There were no stock options forfeited or expired during the nine months ended December 31, 2021. During the nine months ended December 31, 2020, 1,000 unvested stock options were forfeited due to the resignation of an employee and 34,200 vested stock options expired unexercised. No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history of these types of awards.

Outstanding options at December 31, 2021 expire between April 2023 and July 2031 and have exercise prices ranging from $3.34 to $8.51.