Note 15 - Stockholders' Equity

12 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

15.

Stockholders' Equity

Stock-Based Compensation Plans

As of

March 31, 2021

, the Company had

two

active stock plans: the

2007

Stock Incentive Plan, as amended (the

“2007

Plan”) and the Amended and Restated

2007

Director Stock Plan (the

“2007

Director Plan”).  On

August 1, 2019,

the Company's stockholders approved amendments to the

2007

Plan and the

2007

Director Plan. The amendment to the

2007

Plan increased the total number of shares of common stock authorized for issuance under the

2007

Plan from

3,400,000

shares to

4,600,000

shares. The amendment to the

2007

Director Plan increased the total number of shares of common stock authorized for issuance under the

2007

Director Plan from

230,000

shares to

280,000

shares.

The

2007

Plan provides for the grant of incentive stock options intended to qualify under Section 

422

of the IRC of

1986,

as amended, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards. In the case of options, the exercise price is

no

less than the fair market value of the common stock, as determined by (or in a manner approved by) the Board of Directors, on the date of grant. The contractual life of options is generally

10

years. Options generally vest over a

3

-

5

year period while restricted stock generally vests over a

3

year period.

The

2007

Director Plan provides for the grant of nonstatutory stock options and stock awards to members of the Board of Directors who are

not

also employees of the Company ("outside directors"). Under the terms of the

2007

Director Plan, each outside director is granted an option to purchase shares of common stock with an aggregate grant date value equal to

$40,000

upon his or her initial election to the Board with an exercise price equal to the fair market value of the Company's common stock on the date of the grant. These options vest in equal annual installments over a

two

-year period. In addition, each outside director is granted an award of shares of common stock on the

third

business day following the last day of each fiscal year with an aggregate value equal to

$40,000

using the closing price of the Company's common stock

two

business days following the last day of each fiscal year, subject to proration for any partial fiscal year of service.

As of

March 31, 2021

, the

2007

Plan had

793,499

 shares available for future issuance and the

2007

Director Plan had

81,133

 shares available for future issuance.

Stock-Based Compensation

The components of stock-based compensation for the years ended 

March 31, 2021

and 

2020

were as follows (in thousands):

	Fiscal years ended March 31,
	2021		2020
Stock options	$	19	$	16
Restricted stock and stock awards		3,428		1,870
Employee stock purchase plan		38		36
Total stock-based compensation expense	$	3,485	$	1,922

The estimated fair value of the Company's stock-based awards, less expected annual forfeitures, is amortized over the awards' service period. The total unrecognized compensation cost for unvested outstanding stock options was less than $

0.1

 million for the fiscal year ended

March 31, 2021

. This expense will be recognized over a weighted-average expense period of approximately 

0.2

 years.  The total unrecognized compensation cost for unvested outstanding restricted stock was $

4.4

 million for the fiscal year ended

March 31, 2021

. This expense will be recognized over a weighted-average expense period of approximately

1.7

 years.

The following table summarizes stock-based compensation expense by financial statement line item for the fiscal years ended 

March 31, 2021

and 

2020

(in thousands):

	Fiscal years ended March 31,
	2021		2020
Cost of revenues	$	40	$	66
Research and development		642		333
Selling, general and administrative		2,803		1,522
Total	$	3,485	$	1,922

The following table summarizes the information concerning currently outstanding and exercisable employee and non-employee options:

	Options / Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value (thousands)
Outstanding at March 31, 2020		140,281		$	49.95
Granted		—			—
Exercised		(2,588	)		24.30
Canceled/forfeited		(10,528	)		129.53
Outstanding at March 31, 2021		127,165		$	44.37		2.0	$	167
Exercisable at March 31, 2021		127,140		$	44.38		2.0	$	167
Fully vested and expected to vest at March 31, 2021		124,196		$	45.18		1.9	$	143

The Company did

not

grant any options to purchase shares of common stock during the year ended

March 31, 2021

.  The Company granted options to purchase

5,939

shares of common stock during the year ended

March 31, 2020

.  The stock options granted during the year ended

March 31, 2020

will vest over

2

years. The weighted average assumptions used in the Black Scholes valuation model for stock options granted during the year ended 

March 31, 2020

are as follows:

	Fiscal years ended March 31,
	2020
Expected volatility		66.5	%
Risk-free interest rate		1.8	%
Expected life (years)		5.91
Dividend yield	None

The following table summarizes the employee and non-employee restricted stock activity for the year ended

March 31, 2021

:

	Shares			Weighted Average Grant Date Fair Value		Intrinsic Aggregate Value (thousands)
Outstanding at March 31, 2020		982,247		$	6.26
Granted		712,824			6.97
Vested		(414,449	)		5.84
Forfeited		(232,708	)		4.30
Outstanding at March 31, 2021		1,047,914		$	7.17	$	19,868

The total fair value of restricted stock that was granted during the fiscal years ended 

March 31, 2021

and 

2020

was

$5.1

 million and

$3.4

 million, respectively. The total fair value of restricted stock that vested during the fiscal years ended 

March 31, 2021

and 

2020

was

$4.3

 million and

$2.9

 million, respectively.

There we

r

e

255,000

perfor

mance-based restricted shares awarded during th

e fiscal year ended 

March 31, 2021

for which the performance conditions are deemed probable to be met and the expense is being recorded over the expected vesting period.  There were

94,500

performance-based restricted shares awarded during the fiscal year ended 

March 31, 2020

for which the performance conditions are deemed probable to be met and the expense is being recorded over the expected vesting period.

The remaining shares awarded vest upon the passage of time. For awards that vest upon the passage of time, expense is being recorded over the vesting period.

Employee Stock Purchase Plan

The Company maintains the

2000

Employee Stock Purchase Plan, as amended (the "ESPP") which provides employees with the opportunity to purchase shares of common stock at a price equal to the market value of the common stock at the end of the offering period, less a

15%

purchase discount. As of

March 31, 2021

, the ESPP had 

187,868

shares available for future issuance. The Company recognized less than

$0.1

million of compensation expense for both the fiscal years ended 

March 31, 2021

and

2020

, related to the ESPP.