Stock Options Plans

9 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement [Text Block]

Note 9 – Stock Options Plans

The Board of Directors (the “Board”) adopted on January 18, 2017, and ratified by the shareholders at the Annual Meeting on January 18, 2017, the Company’s 2016 Stock Option Plan (the “Plan”). The Plan provides for the granting of incentive stock options, by a committee to be appointed by the Board (both the Board and the Committee are referred to herein as the “Committee”) to directors, officers, and employees (excluding directors and officers who are not employees) to purchase shares of the Common Stock of the Company, par value $0.10 per share (the “Stock”), in accordance with the terms and provisions. The 2016 Plan reserves for issuance, options to purchase up to 250,000 shares of its common stock. 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 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 Company accounts for stock-based compensation in accordance with FASB ASC 718 which requires the measurement of stock-based compensation based on the fair value of the award on the date of grant. The Company recognizes compensation cost on awards on a straight-line basis over the vesting period, typically four years. The Company estimates the fair value of each option granted using the Black-Scholes option-pricing model.

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 Company granted 160,000 stock options during the period ended December 31, 2024. The per share weighted-average fair value of stock options granted for the period ended December 31, 2024 was $1.36 on the date of grant using the Black Scholes option-pricing model with the following assumptions:

	Dividend			Risk-free
	Yield			Interest rate			Volatility			Life
2025		0.00	%		3.73	%		66.79	%		5

There were no options granted in the prior fiscal year.

A summary of the status of the Company’s stock option plans for the fiscal year ended March 31, 2024, and year to date December 31, 2024, and changes during the year are presented below (in number of options):

	Number of Options			Average Exercise Price		Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding options at April 1, 2024		99,000		$	3.13		0.78 years	$	-
Options granted		160,000		$	2.25
Options exercised		-		$	-
Options canceled/forfeited		(68,500	)	$	3.16
Outstanding options at December 31, 2024		190,500		$	2.38		4.0 years	$	107,100
Vested options at December 31, 2024		19,800		$	3.02		1.4 years	$	-

Remaining options available for grant were 59,500 as of December 31, 2024.

At December 31, 2024, the unamortized compensation expense for stock options was $156,287. Unamortized compensation expense is expected to be recognized over a weighted-average period of approximately 2.6 years.

For the three months ended December 31, 2024, the Company recorded stock compensation costs of $12,591, as compared to $1,942 for the three months ended December 31, 2023. For the nine months ended December 31, 2024, the Company recorded stock compensation costs of $16,477 as compared to $7,156 for the nine months ended December 31, 2023.