17. Stock Option Plans

In December 2016, the Board adopted the 2016 Stock Option Plan (the “2016 Plan”) which reserved for issuance options to purchase up to 250,000 shares of its Common Stock. The stockholders approved the Plan at the January 2017 annual meeting. Shareholders had previously adopted the 2006 Stock Option Plan, under which substantially all of the options have been granted. Therefore, the Board approved the 2016 Plan, and the terms are substantially the same as under the 2006 Employees Stock Option. The 2016 Plan reserves for issuance options to purchase up to 250,000 shares of its common stock. All employees, directors and consultants are eligible to receive stock option grants under this plan. The 2016 Plan, which has a term of ten years from the date of adoption, is administered by the Board or by a committee appointed by the Board. The selection of participants, allotment of shares, and other conditions related to the grant of options, to the extent not set forth in the Plan, are determined by the Board. Options granted under the Plan are exercisable up to a period of five years from the date of grant at an exercise price which is not less than the fair market value of the common stock at the date of grant, except to a shareholder owning 10% or more of the outstanding common stock of the Company, as to which the exercise price must be not less than 110% of the fair market value of the common stock at the date of grant. Options, for the most part, are exercisable on a cumulative basis, 20% at or after each of the first, second, and third anniversary of the grant and 40% after the fourth year anniversary.

The fair value of each option awarded is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of Common Stock. The expected life of the options granted represents the period of time from date of grant to expiration (5 years). The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. The per share weighted-average fair value of stock options granted for the years ended March 31, 2021, and 2020 were $1.03 and $1.05, respectively, on the date of grant using the Black Scholes option-pricing model with the following assumptions:

	Dividend			Risk-free
	Yield			Interest rate			Volatility			Life
2021		0.0	%		0.5	%		37.32	%	5 years
2020		0.0	%		2.28	%		33.15	%	5 years

A summary of the status of the Company’s stock option plans for the fiscal years ended March 31, 2021, and 2020 and changes during the years are presented below (in number of options):

	Number of Options			Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding options on April 1, 2019		42,500		$	5.40
Options granted		76,000		$	3.19
Options exercised		-		$	-
Options canceled/forfeited		-		$	-

Outstanding options on March 31, 2020		118,500		$	3.98	2.8 years	$	13,295
Options granted		15,000		$	3.11
Options exercised		-		$	-
Options canceled/forfeited		(35,000	)	$	5.85

Outstanding options on March 31, 2021		98,500		$	3.19	3.3 years	$	30,835

Vested Options:
March 31, 2021:		19,700		$	3.22	2.8 years	$	5,567
March 31, 2020:		38,000		$	5.65	0.3 years	$	2,734

Remaining options available for grant were 151,500 and 166,500 as of March 31, 2021, and 2020, respectively.

For the years ended March 31, 2021, and 2020, the unamortized compensation expense for stock options was $60,013 and $61,592, respectively. Unamortized compensation expense is expected to be recognized over a weighted-average period of approximately 1.4 years.

A summary of the Company’s non-vested shares as of March 31, 2021, and changes during the year ended March 31, 2021, is presented below:

Non-vested Shares	Shares			Weighted-Average Grant-Date Fair value

Non-vested on April 1, 2020		80,500		$	3.20
Granted		15,000		$	3.11
Vested		(16,700	)	$	3.20
Forfeited		-		$	-
Non-vested on March 31, 2021		78,800		$	3.18

The compensation cost that has been charged was $21,996 and $21,669 for the fiscal years ended March 31, 2021, and 2020, respectively.