Note 7 - Stock Based Compensation

3 Months Ended

Jun. 30, 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, based on grant date fair value,

 is recognized over the requisite service period for stock options which are expected to vest. 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. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense.

No

options were granted or exercised under Air T, Inc.

’s stock option plan during the

three

-month periods ended

June 30, 2016

and

2015.

Stock-based compensation expense with respect to this plan in the amount of

$0

was recognized for the

three

-month periods ended

June 30, 2016

and

2015,

respectively. At

June 30, 2016,

there was

no

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

No

options were granted or exercised during the

June 2016

quarter under any of Delphax

’s stock option plans. Delphax did

not

recognize any stock-based compensation expense during the

June 2016

quarter.