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STOCK-BASED COMPENSATION
6 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 12. STOCK-BASED COMPENSATION

 

Part of the compensation paid by the Company to its Directors and employees consists of the issuance of Common Stock or via the granting of options to purchase Common Stock.

 

Stock-based Director Compensation

 

The Company’s Director compensation policy, instituted in October 2009 and further revised in January 2016, includes provisions that a portion of director’s fees are to be paid via the issuance of shares of the Company’s Common Stock, in lieu of cash, with the valuation of such shares being calculated on quarterly basis and equal to the average closing price of the Company’s Common Stock.

 

As of September 30, 2022, the Company accrued director’s fees totaling $45,000, which will be paid via cash payments totaling $15,000 and the issuance of 739,449 shares of Common Stock. The Company anticipates that these shares of Common Stock will be issued prior to the end of the current fiscal year.

 

Stock-based Employee/Consultant Compensation

 

Employment contracts with the Company’s President and Chief Executive Officer and certain other employees and engagement contracts with certain consultants include provisions for a portion of each employee’s salaries or consultant’s fees to be paid via the issuance of shares of the Company’s Common Stock, in lieu of cash, with the valuation of such shares being calculated on a quarterly basis and equal to the average closing price of the Company’s Common Stock.

 

During the six months ended September 30, 2022, the Company accrued salaries totaling $250,000 owed to the Company’s President and Chief Executive Officer and certain other employees which will be paid via the issuance of 6,109,277 shares of Common Stock.

 

As of September 30, 2022, the Company owed its President and Chief Executive Officer and certain other employees’ salaries totaling $3,875,000 which will be paid via the issuance of 56,300,056 shares of Common Stock.

 

 

 

ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

Options

 

Under its 2014 Stock Option Plan and prior options plans, the Company may grant stock options to officers, selected employees, as well as members of the Board of Directors and advisory board members. All options have generally been granted at a price equal to or greater than the fair market value of the Company’s Common Stock at the date of the grant. Generally, options are granted with a vesting period of up to three years and expire ten years from the date of grant. A summary of the activity of Company’s 2014 Stock Option Plan for the six months ended September 30, 2022 is as follows:

 

  

Shares

Underlying

Options

  

Weighted

Average

Exercise Price

  

Weighted Average

Remaining Contractual

Term

(in years)

  

Aggregate Intrinsic

Value

 
Outstanding at March 31, 2022   5,650,000   $0.14    2.8   $ 
Granted   1,100,000   $0.04    9.6   $13,970 
Outstanding at September 30, 2022   6,750,000   $0.14    2.5   $ 
Exercisable at September 30, 2022   4,530,001   $0.16    2.1   $ 

 

The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s Common Stock as of September 30, 2022 and March 31, 2022 of $0.10 and $0.10, respectively.

 

As of September 30, 2022, there was $38,357 in unrecognized stock based compensation expense that will be recognized over 2.5 years.