Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Stock Based Compensation

v3.5.0.2
Note 7 - Stock Based Compensation
3 Months Ended
Jun. 30, 2016
Notes  
Note 7 - Stock Based Compensation

NOTE 7 – STOCK BASED COMPENSATION

 

On May 25, 2016 the Company granted a total of 315,500 stock options to employees.  The options vest 1/3 each year for 3 years, with the first vesting occurring on the first anniversary of the vesting date. The Company estimates the fair value of each option award at the grant date by using the Black-Scholes option pricing model.

 

Additionally, the Company granted 15,000 RSUs to Ryan Oviatt, the Company CFO vesting immediately on the date of grant, pursuant to his employment agreement. The Company estimates the fair value of the RSUs at their intrinsic value at the time of granting.

 

The Company recognized $143,765 and $187,406 in expense for the fair value of previously granted stock based compensation vested during the three months ended June 30, 2016, and 2015, respectively. Stock compensation expense is recognized on a pro-rata basis over the vesting period of the equity awards. During the three month periods ended June 30, 2016 the Company recognized $143,765 in compensation expense arising from equity awards issued, leaving $1,142,898 of compensation expense on equity awards to be recognized subsequent to June 30, 2016.

 

A summary of the status of the Company’s stock option plans and the changes during each period are presented below:

 

Options

Wtd. Avg. Fair Value

Outstanding, March 31, 2015

                2,113,500

                       1.90

Granted

                          -  

                          -  

Exercised

                          -  

                          -  

Forfeited/Expired

                 (552,300)

                       1.54

Outstanding, March 31, 2016

 

                1,561,200

 

                       1.90

 

 

 

Exercisable, March 31, 2016

 

                1,050,800

 

                       2.12

Options

Wtd. Avg. Fair Value

Outstanding, March 31, 2016

                1,561,200

                       1.90

Granted

                  315,500

                       1.01

Exercised

                          -  

                          -  

Forfeited/Expired

                   (96,000)

                       1.92

Outstanding, June 30, 2016

 

                1,780,700

 

                       1.84

 

 

 

Exercisable, June 30, 2016

 

                1,128,500

 

                       2.10

 

The following table summarizes information about the Company’s outstanding stock options: 

 

Total Outstanding and Exercisable March 31, 2016

Outstanding Options (1 share/option)

Average Remaining Life (Yrs)

Exercisable Shares

Weighted Average Exercise Price

Strike Price

 

 

 

 

$

0.30

                  110,000

0.88

       110,000

0.30

$

1.37

                  711,500

3.13

       345,500

1.37

$

1.75

                  346,500

1.93

       276,500

1.75

$

3.85

                  200,000

3.61

       200,000

3.85

$

3.95

                  100,000

7.86

       100,000

3.95

$

4.03

 

                    93,200

 

4.09

 

        18,800

 

4.03

 

               1,561,200

2.92

    1,050,800

2.12

Total Outstanding and Exercisable June 30, 2016

Outstanding Options (1 share/option)

Average Remaining Life (Yrs)

Exercisable Shares

Weighted Average Exercise Price

Strike Price

 

 

 

 

$

0.30

                  110,000

0.63

       110,000

0.30

$

1.01

                  315,500

3.90

               -  

1.01

$

1.37

                  658,000

2.84

       431,000

1.37

$

1.75

                  320,000

1.68

       255,000

1.75

$

3.85

                  200,000

3.36

       200,000

3.85

$

3.95

                  100,000

7.61

       100,000

3.95

$

4.03

 

                    77,200

 

3.84

 

        32,500

 

4.03

 

               1,780,700

2.67

    1,128,500

2.10

 

The following table summarizes information about non-vested options as of the three months ended June 30, 2016:

 

Non-vested options

Options

Wtd. Avg.  Grant Date  Fair Value

Non-vested at March 31, 2016

      510,400

       1.81

Stock options granted during the period

      315,500

      1.01

Stock options canceled

      (96,000)

       1.92

Cancellation of previously vested stock options

        50,700

       1.59

Vested during the period ended June 30, 2016

    (128,200)

       1.68

Non-vested at June 30, 2016

 

      659,900

 

       1.41

 

The following table summarizes information about non-vested restricted stock awards as of the three months ended June 30, 2016:

Non-vested restricted stock

Restricted Stock

Wtd. Avg.  Grant Date  Fair Value

Non-vested at March 31, 2016

        97,334

       4.03

Restricted stock granted during the period

              -  

          -  

Restricted Stock canceled

              -  

          -  

Vested, not settled during the period ended June 30, 2016

      (24,332)

       4.03

Vested & settled during the period ended June 30, 2016

              -  

          -  

Non-vested at June 30, 2016

 

        73,002

 

       4.03

Non-vested restricted stock units

Restricted Stock Units

Wtd. Avg.  Grant Date  Fair Value

Non-vested at March 31, 2016

      305,333

       1.38

Restricted stock units granted during the period

        15,000

       1.01

Restricted stock units canceled

              -  

          -  

Vested, not settled during the period ended June 30, 2016

      (48,333)

       1.01

Vested & settled during the period ended June 30, 2016

              -  

          -  

Non-vested at June 30, 2016

 

      272,000

 

       1.36