Note 11 - Employee and Non-employee Stock Options

6 Months Ended

Sep. 30, 2018

Notes to Financial Statements

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

11. Employee and Non-employee Stock Options

Air T, Inc. maintains a stock option plan for the benefit of certain eligible employees and directors. 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 granted under Air T, Inc.’s stock option plan during the

three

and

six

-month periods ended

September 30, 2018

and

2017.

A total of

1,682

options were exercised during the

three

-month period ended

September 30, 2018

at a weighted average exercise price of

$10.56.

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

$0

was recognized for the

three

and

six

-month periods ended

September 30, 2018

and

2017,

respectively. At

September 30, 2018,

there was

no

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

No

options were granted or exercised during the

three

and

six

-month periods ended

September 30, 2018

and

2017

under any of Delphax’s stock option plans.