SHARE-BASED COMPENSATION

3 Months Ended

Jun. 30, 2021

Equity [Abstract]

SHARE-BASED COMPENSATION

Note 5. SHARE-BASED COMPENSATION

The provisions of ASC 718-10-55 requires the measurement and recognition of compensation expense for all share-based payment awards made to our employees and directors, including employee stock options and RSUs, based on estimated fair values. The following table summarizes stock-based compensation expense related to employee stock options for the three months ended June 30, 2021 and 2020, which was allocated as follows:

	Three Months Ended
	June 30, 2021		June 30, 2020
Cost of sales	$	918	$	718
Sales and marketing		1,218		1,158
General and administrative		5,658		5,172
Research and development		546		486
Stock-based compensation expense	$	8,340	$	7,534

Share-based compensation cost for stock options is measured at the grant date, based on the fair value as calculated by the Black-Scholes-Merton ("BSM") option-pricing model. The BSM option-pricing model requires the use of actual employee exercise behavior data and the application of a number of assumptions, including expected volatility, risk-free interest rate and expected dividends. There were no stock options granted and no stock options forfeited during the three months ended June 30, 2021, and 20,000 stock options granted and no stock options forfeited during the three months ended June 30, 2020.

As of June 30, 2021, approximately $65,000 of total unrecognized compensation costs related to nonvested stock options is expected to be recognized over a period of five years.