Note 7 - Stock Based Compensation

9 Months Ended

Dec. 31, 2017

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. Many of these assumptions are judgmental and highly sensitive in the determination of compensation expense.

No

options were exercised under Air T, Inc.

’s stock option plan during the

three

-month and

nine

-month periods ended

December 31, 2017

and

2016.

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

$0

was recognized for the

three

-month and

nine

-month periods ended

December 31, 2017

and

2016,

respectively. At

December 31, 2017,

there was

no

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

No

options were granted or exercised during the

December 2017

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

not

recognize any stock-based compensation expense during the

December 2017

quarter.