Note 7 - Stock-based Compensation

9 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7. Stock-Based Compensation

Air T, Inc. maintains a stock option plan for the benefit of certain eligible employees and directors, though no awards

may

be granted under the plan after

July

29,

2015.

In addition, Delphax maintains a number of stock option plans. Compensation expense is recognized over the requisite service period for stock options which are expected to vest based on their grant-date fair values. The Company uses the Black-Scholes option pricing model to value stock options granted under the Air T, Inc. plan and the Delphax plans. The key assumptions for this valuation method include the expected term of the option, stock price volatility, risk-free interest rate and dividend yield. These assumptions are judgmental.

No

options were granted or exercised under Air T, Inc.’s stock option plan during the

nine

-month periods ended

December

31,

2016

and

2015.

Likewise, there was

no

stock-based compensation expense in these periods. At

December

31,

2016,

there was

no

unrecognized compensation expense related to the Air T Inc. stock options. During the

three

months and

nine

months ended

December

31,

2016,

zero

and

30,000

stock options expired, respectively.

No

options were granted or exercised during the

December

2016

quarter under any of Delphax’s stock option plans. Delphax did

not

recognize any stock-based compensation expense during the

December

2016

quarter.

A summary of Air T, Inc. stock option activity during the

nine

months ended

December

31,

2016

is presented below:

	Shares
Outstanding as of March 31, 2016		40,000
Activity during the nine months ended December 31, 2016
Granted		-
Exercised		-
Canceled (forfeited/expired)		(30,000	)
Outstanding as of December 31, 2016		10,000
Exerciseable as of December 31, 2016		10,000