Stock-based Compensation

9 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

4. Stock-based Compensation

The Company recognized stock-based compensation expense of $51,630 and $58,847 in general and administrative expense in the Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023, respectively. Stock-based compensation expense recognized for the nine months ended December 31, 2024 and 2023 was $155,699 and $172,670, respectively. The total cost related to non-vested awards not yet recognized at December 31, 2024 totals $330,113 which is expected to be recognized over a weighted average of 1.78 years.

During the nine months ended December 31, 2024, no stock options were granted. During the nine months ended December 31, 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 nine months ended December 31, 2024 and 2023. All such amounts represent the weighted average amounts.

	Nine Months Ended
	December 31
	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 activity of stock options for the nine months ended December 31, 2024:

	Number of Shares			Weighted Average Exercise Price		Weighted 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		(2,500	)		-
Outstanding at December 31, 2024		150,883		$	9.52		6.23	$	265,761
Vested at December 31, 2024		105,508		$	7.69		5.55	$	378,561
Exercisable at December 31, 2024		105,508		$	7.69		5.55	$	378,561

During the nine months ended December 31, 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 nine months ended December 31, 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.

During the nine months ended December 31, 2024, 1,875 unvested stock options and 625 vested stock options were forfeited due to the resignation of an employee. There were no stock options forfeited or expired during the nine months ended December 31, 2023. 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, 2024 expire between September 2028 and April 2033 and have exercise prices ranging from $3.34 to $18.05.