Stock Options

12 Months Ended

Feb. 29, 2020

Note 6. Stock Options

Upon recommendation of the Board of Directors of the Company, on August 25, 2006, the shareholders of the Company approved the Video Display Corporation 2006 Stock Incentive Plan (“Plan”), whereby options to purchase up to 500,000 shares of the Company’s common stock may be granted and up to 100,000 restricted common stock shares may be awarded. Options may not be granted at a price less than the fair market value, determined on the day the options are granted. Options granted to a participant who is the owner of ten percent or more of the common stock of the Company may not be granted at a price less than 110% of the fair market value, determined on the day the options are granted. The exercise price of each option granted is fixed and may not be

re-priced.

The life of each option granted is determined by the plan administrator, but may not exceed the lesser of seven years from the date the participant has the vested right to exercise the option, or nine years from the date of the grant. The life of an option granted to a participant who is the owner of ten percent or more of the common stock of the Company may not exceed five years from the date of grant. All full-time or part-time employees, and Directors of the Company, are eligible for participation in the Plan. In addition, any consultant or advisor who renders bona fide services to the Company, other than in connection with the offer or sale of securities in a capital-raising transaction, is eligible for participation in the Plan. The plan administrator is appointed by the Board of Directors of the Company. The Plan may be terminated by action of the Board of Directors, but in any event will terminate on the tenth anniversary of its effective date.

Information regarding the stock option plans is as follows:


	Number of Options (in thousands)		Average Exercise Price Per Share
Outstanding at February 2 8 , 2018		200	$	0.82
Granted		—		—
Forfeited or expired		—		—

Outstanding at February 28, 2019		200	$	0.82
Granted		—		—
Forfeited or expired		—		—

Outstanding at February 29, 2020		200	$	0.82

Options exercisable
February 28, 2019		107	$	0.82
February 29, 2020		153	$	0.82


	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding at February 29, 2020(in thousands)		Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price	Number Exercisable at February 29, 2020 (in thousands)	Weighted Average Exercise Price
$0.80 - $1.00		200	6.0	$0.82	153	$0.82

The Company estimates the fair value of stock options granted using the Black-Scholes option-pricing model, which requires the Company to estimate the expected term of the stock option grants and expected future stock price volatility over the term. The term represents the expected period of time the Company believes the options will be outstanding based on historical information. Estimates of expected future stock price volatility are based on the historic volatility of the Company’s common stock. The Company calculates the historic volatility based on the weekly stock closing price, adjusted for dividends and stock splits. The fair value of the stock options is based on the stock price at the time the option is granted, the annualized volatility of the stock and the discount rate at the grant date.

No options were granted in fiscal 2019 or 2020.

For the fiscal years ended February 29, 2020 and February 28, 2019, the Company recognized $7 and $18 thousand, respectively, of share-based compensation in general and administrative expense in the statements of operations. As of February 29, 2020, there was no unrecognized compensation costs related to stock options.