Stock-based Compensation

3 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

5. Stock-based Compensation

The Company recognized compensation expense of $52,439 and $54,975 related to vesting stock options in general and administrative expense in the Consolidated Statements of Operations for the first quarter of fiscal 2025 and 2024, respectively. The total cost related to non-vested awards not yet recognized at June 30, 2024 totals $433,373, which is expected to be recognized over a weighted average of 2.12 years.

During the three months ended June 30, 2024, no stock options were granted. During the three months ended June 30, 2023, the Compensation Committee of the Board of Directors approved and the Company granted 32,000 stock options exercisable at $12.68 per share with an estimated fair value of $279,360. 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 three months ended June 30, 2024 and 2023. All such amounts represent the weighted average amounts.

	Three Months Ended
	June 30
	2024		2023
Grant-date fair value		-	$	8.73
Volatility factor		-		56.5	%
Dividend yield		-		-
Risk-free interest rate		-		3.44	%
Expected term (in years)		-		6.25

The following table is a summary of stock options activity for the three months ended June 30, 2024:

	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Aggregate Average Remaining Contract Life in Years		Intrinsic Value
Outstanding at April 1, 2024		165,750		$	9.36		6.62	$	103,275
Granted		-			-
Exercised		(12,367	)		6.28
Forfeited or Expired		(1,875	)		14.83
Outstanding at June 30, 2024		151,508		$	9.54		6.74	$	269,604
Vested at June 30, 2024		91,133		$	6.82		5.82	$	409,989
Exercisable at June 30, 2024		91,133		$	6.82		5.82	$	409,989

During the three months ended June 30, 2024, stock options covering 12,367 shares were exercised with a total intrinsic value of $92,316. The Company received proceeds of $77,641 from these exercises. During the three months ended June 30, 2023, stock options covering 500 shares were exercised with a total intrinsic value of $2,416. The Company received proceeds of $2,962 from these exercises.

No forfeiture rate is assumed for stock options granted to directors or employees due to the forfeiture rate history for these types of awards. During the three months ended June 30, 2024, 1,875 unvested stock options were forfeited due to the resignation of an employee. During the three months ended June 30, 2023, there were no stock options forfeited or expired.

Outstanding options at June 30, 2024 expire between September 2028 and April 2033 and have exercise prices ranging from $3.34 to $18.05.