Annual report pursuant to Section 13 and 15(d)

Note 8 - Common Stock Purchase Options

v3.5.0.1
Note 8 - Common Stock Purchase Options
12 Months Ended
Mar. 31, 2016
Notes  
Note 8 - Common Stock Purchase Options

NOTE 8 – COMMON STOCK AND COMMON STOCK PURCHASE OPTIONS

 

On May 1, 2014, the Company issued a total of 133,900 stock purchase options exercisable for the purchase of its common stock at $4.03 per share. The options were issued to key employees. The options vest 1/5 each year for 5 years. The Company estimates the fair value of each stock award at the grant date by using the Black-Scholes option pricing model.  The following weighted average assumptions were used for grants as of May 1, 2014: dividend yield of zero percent; expected volatility of 149%; risk-free interest rates of 0.82% and expected life of 3.5 years.

 

On May 1, 2014, the Company issued a total of 180,000 shares of restricted stock to key employees.  The shares vest 1/5 each year for 5 years.  The Company estimates the fair value of the restricted shares at their intrinsic value at time of granting.

 

On September 18, 2014, the Company issued a total of 79,812 shares of restricted stock units to the independent directors of the company.  Half of the shares vested immediately with the remaining half vesting one year after issuance.  Additionally, the company issued a total of 12,000 shares of restricted stock units to key employees.  The units vest 1/5 each year for 5 years.  The Company estimates the fair value of the units at their intrinsic value at time of granting.

 

On November 6, 2014, the Company issued a total of 49,999 shares of restricted stock units to key employees.  The units vest 1/5 each year for 5 years based on performance and service longevity requirements.  The Company estimates the fair value of the units at their intrinsic value at time of granting.

 

On March 27, 2015, the Company issued a total of 5,000 restricted stock units to a key employee. The units vest 1/5 each year for 5 years.  The Company estimates the fair value of the units at their intrinsic value at time of granting.

 

On July 23, 2015, the Company issued a total of 208,334 restricted stock units to key employees. The units vest 1/5 each year for 5 years.  The Company estimates the fair value of the units at their intrinsic value at time of granting.

 

On October 30, 2015, the Company issued a total of 320,000 restricted stock units to the independent directors of the company.  Half of the shares vested immediately with the remaining half vesting September 17, 2016. The Company estimates the fair value of the units at their intrinsic value at time of granting.

 

A summary of the status of the Company’s stock option plans as of March 31, 2016 and 2015 and the changes during the period are presented below:

 

 

 

 

Wtd. Avg.

 

Options

 

Exercise Price

Outstanding, March 31, 2014

      3,074,850

 

1.47

Granted

        133,900

 

4.03

Exercised

       (596,635)

 

0.55

Forfeited/Expired

       (498,615)

 

1.39

Outstanding, March 31, 2015

      2,113,500

 

1.90

 

 

 

 

Exercisable, March 31, 2015

        907,000

 

2.27

 

 

 

 

 

 

 

Wtd. Avg.

 

Options

 

Exercise Price

Outstanding, March 31, 2015

      2,113,500

 

             1.90

Granted

                -  

 

                -  

Exercised

                -  

 

                -  

Forfeited/Expired

       (552,300)

 

             1.54

Outstanding, March 31, 2016

      1,561,200

 

             2.02

 

 

 

 

Exercisable, March 31, 2016

      1,050,800

 

             2.12

The following table summarizes information about the stock options as of March 31, 2015:

 

 

Total Outstanding and Exercisable For the Year Ending March 31, 2015

 

 

 

Strike Price

 

 

Outstanding Options

(1 share/option)

 

 

Avg. Remaining

Life (Yrs)

 

 

Exercisable

 Shares

 

 

Wtd. Avg.

 Exercise Price

$

0.30

 

          110,000

 

1.88

 

          40,000

 

0.30

$

1.37

 

       1,118,000

 

4.08

 

        284,000

 

1.37

$

1.75

 

          475,000

 

2.93

 

        283,000

 

1.75

$

3.85

 

          200,000

 

4.61

 

        200,000

 

3.85

$

3.95

 

          100,000

 

4.86

 

        100,000

 

3.95

$

4.03

 

          110,500

 

5.09

 

                -  

 

4.03

 

 

 

       2,113,500

 

4.02

 

        907,000

 

2.27

 

The following table summarizes information about the stock options as of March 31, 2016: 

 

 

Total Outstanding and Exercisable For the Year Ending March 31, 2016

 

 

 

Strike Price

 

 

Outstanding Options

(1 share/option)

 

 

Avg. Remaining

Life (Yrs)

 

 

Exercisable

 Shares

 

 

Wtd. Avg.

 Exercise 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

 

3.86

 

        100,000

 

             3.95

$

4.03

 

           93,200

 

4.09

 

          18,800

 

             4.03

 

 

 

       1,561,200

 

2.92

 

      1,050,800

 

             2.12

 

The following table summarizes information about non-vested options as of the year ended March 31, 2016: 

 

 

 

 

Wtd. Avg.

 

 

 

Grant Date

Non-vested options

Options

 

Fair Value

Non-vested at March 31, 2015

      1,206,500

 

             1.58

Stock options issued during the year

                -  

 

                -  

Stock options canceled

       (552,300)

 

             1.54

Vested during the year ended March 31, 2016

       (370,600)

 

             1.40

Cancellation of previously vested stock options

        226,800

 

             1.54

Non-vested at March 31, 2016

        510,400

 

             1.81

 

The following table summarizes information about non-vested restricted stock as of the year ended March 31, 2016:

 

 

 

Wtd. Avg.

 

Restricted

 

Grant Date

Non-vested restricted stock

Stock

 

Fair Value

Non-vested at March 31, 2015

        171,666

 

             4.03

Restricted stock issued during the year

                -  

 

                -  

Restricted Stock canceled

         (40,000)

 

             4.03

Vested during the year ended March 31, 2016

         (34,332)

 

             4.03

Non-vested at March 31, 2016

          97,334

 

             4.03

 

 

 

 

 

 

 

Wtd. Avg.

 

Restricted

 

Grant Date

Non-vested restricted stock units

Stock Units

 

Fair Value

Non-vested at March 31, 2015

        106,907

 

             3.94

Restricted stock units issued during the year

        528,334

 

             1.05

Restricted stock units canceled

         (76,999)

 

             1.68

Vested, not settled during the period ended March 31, 2016

       (199,908)

 

             1.68

Vested & settled during the year ended March 31, 2016

         (53,001)

 

             1.62

Non-vested at March 31, 2016

        305,333

 

             1.38