9. Employee Benefit Plans

Stock Incentive Plans

In September 2007, our stockholders approved the 2007 Omnibus Incentive Plan (the “2007 Plan”), which provides that options to purchase shares of our unissued common stock may be granted to our employees, officers, consultants and directors at exercise prices which are equal to or greater than the market value of our common stock on the date of grant. The 2007 Plan also allows for the issuance of stock appreciation rights, restricted stock, restricted stock units (“RSUs”) and other stock‑based awards based on the value of our common stock. New shares are issued to satisfy stock option exercises and share issuances under the 2007 Plan. In September 2009, our stockholders approved an amendment to increase the number of shares of our common stock authorized and reserved for issuance under the 2007 Plan by 800,000 shares to a total of 1,650,000 shares. In September 2012, our stockholders approved an amendment to increase the number of shares of our common stock authorized and reserved for issuance under the 2007 Plan by 800,000 shares to a total of 2,450,000 shares. In October 2014, our stockholders approved an amendment of the 2007 Plan to increase the number of shares of common stock authorized for issuance under the 2007 Plan by an additional 1,500,000 shares to a total of 3,950,000 shares. In September 2015, our stockholders approved an amendment of the 2007 Plan to increase the number of shares of common stock authorized for issuance under the 2007 Plan by an additional 1,000,000 shares to a total of 4,950,000 shares. In December 2016, our stockholders approved the 2016 Omnibus Incentive Plan (the “2016 Plan”) which allows for the issuance of stock options, stock appreciation rights, restricted stock, RSUs, cash incentive awards and other stock-based awards to our employees, officers, consultants and directors at exercise prices which are equal to or greater than the market value of our common stock on the date of grant. Options expire no more than ten years after the date of grant and generally vest at the rate of 25% on each of the first four anniversaries of the grant date. Stock appreciation rights, restricted stock, RSUs and other stock-based awards are based on the value of our common stock. New shares are issued to satisfy stock option exercises and share issuances under the 2016 Plan.

We currently maintain two stock incentive plans, the 2007 Omnibus Incentive Plan and the 2016 Omnibus Incentive Plan (the "2016 Plan"). Of these plans, we may only grant future awards from the 2016 Plan. The 2016 Plan allows for the issuance of stock options , stock appreciation rights, restricted stock, restricted stock units ("RSUs"), cash incentive awards and other stock-based awards. At March 31, 2020, there were approximately 1.7 million shares of common stock available for grant or issuance under the 2016 Plan. Total stock options vested and expected to vest were approximately 5.9 million as of March 31, 2020.

Stock Options

A summary of activity in the Plans with respect to our stock options for Fiscal 2020 is as follows:


		Weighted		Weighted
		Average		Average
		Exercise		Remaining	Aggregate
		Price Per		Contractual	Intrinsic
	Options	Share		Life	Value
	(In thousands)			(Years)	(In thousands)
Options outstanding at March 31, 2019	5,035	$	3.70	7.6	$	4,430
Granted	1,206		5.06
Exercised	(119)		2.13
Forfeited	(188)		4.94
Expired	—		—
Options outstanding at March 31, 2020	5,934	$	3.99	7.2	$	2,095

Restricted Stock Units

RSU awards are stock‑based awards that entitle the holder to receive one share of our common stock for each RSU upon vesting. RSUs granted under the 2007 Plan vest at the rate of 25% on each of the first four anniversaries of the grant date provided that the holder remains in service (as defined by the 2007 Plan) as of the vesting date. RSUs granted under the 2016 Plan vest at varying terms between one and four anniversaries of the grant date provided that the holder remains in service (as defined by the 2016 Plan) as of the vesting date. The fair value per RSU is determined based on the closing market price of our common stock on the grant date.

A summary of activity with respect to our RSUs for Fiscal 2020 is as follows:


		Weighted		Weighted
		Average		Average		Aggregate
		Price Per		Remaining		Intrinsic
	# of Shares	Share		Life		Value
	(In thousands)			(Years)		(In thousands)
RSUs outstanding at March 31, 2019	112	$	4.62	1.1	$	19
Granted	374		5.12
Vested	(78)		4.17
Forfeited	(4)		5.52
RSUs outstanding at March 31, 2020	404	$	5.16	2.0	$	1,295

Stock‑Based Compensation

The following table presents stock‑based compensation expense that is included in each functional line item in our consolidated statements of operations:


	Year Ended March 31,
	2020		2019		2018
	(In thousands)
Cost of revenues	$	175	$	146	$	71
Selling, general and administrative expense		2,364		1,804		1,558
Research and development expense		246		206		152
Total stock-based compensation	$	2,785	$	2,156	$	1,781

At March 31, 2020, there was approximately $5.5 million and $1.5 million of unrecognized compensation expense related to unvested stock options and RSUs, respectively. This expense is currently expected to be recognized over a weighted average period of approximately 2.9 years for stock options and 2.0 years for RSUs. If there are any modifications or cancellations of the underlying unvested awards, we may be required to accelerate, increase or cancel any remaining unearned stock‑based compensation expense. Future stock based compensation expense and unearned stock‑based compensation will increase to the extent that we grant additional stock options, RSUs or other stock‑based awards.

The grant date fair value of stock options granted was estimated using the following weighted‑average assumptions:


	Year Ended March 31,
	2020		2019		2018
Expected life—years	6.8		5.9		6.5
Risk-free interest rate	2.2	%	2.7	%	2.7	%
Expected volatility of common stock	47	%	43	%	43	%
Dividend yield	0	%	0	%	0	%

Expected Life: The Company’s expected life represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected life is based on expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. Treasury zero coupon yield curve in effect at the time of grant for the expected term of the option.

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

A summary of certain fair value and intrinsic value information pertaining to our stock options is as follows:


	Year Ended March 31,
	2020		2019		2018
	(In thousands, except per share amounts)
Weighted average grant date fair value per share of options granted	$	2.52	$	1.89	$	2.59
Intrinsic value of options exercised	$	378	$	114	$	2,469

Employee Incentive Programs

Under the terms of a Profit Sharing Plan, we may contribute to a trust fund such amounts as determined annually by the Board of Directors. No contributions were made during the fiscal years ended March 31, 2020, 2019 and 2018.

We sponsor a defined contribution 401(k) plan (the “401(k) Plan”), adopted in 1990, under which eligible employees voluntarily contribute to the plan, up to IRS maximums, through payroll deductions. We match up to 50% of contributions, up to a stated limit, with all matching contributions being fully vested after three years of service. Our matching contributions under the 401(k) Plan were approximately $1,317,000, $1,185,000 and $1,067,000 for the Fiscal 2020, Fiscal 2019 and Fiscal 2018, respectively.

Other Stock-Based Compensation Plans

Beginning January 1, 2018, the Company adopted an ESPP which allows employees to withhold a percentage of their base compensation to purchase the Company's common stock at 95% of the lower of the fair market at the beginning of the offering period and on the last trading day of the offering period. There are two offering periods during a calendar year, which consist of the six months beginning each January 1 and July 1. Employees may contribute 1- 15% of their eligible gross pay up to a $25,000 annual stock value limit. During Fiscal 2020 and Fiscal 2019, 91,000 and 92,000 shares, respectively, were purchased. There were no share purchases in Fiscal 2018. The ESPP is considered a non-compensatory plan and accordingly no compensation expense is recorded in connection with this benefit.

As of March 31, 2020, approximately $146,000 of cash was restricted for the purchase of shares under the ESPP and is recorded as restricted cash in the accompanying consolidated balance sheets.