9. STOCK COMPENSATION

6 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

STOCK COMPENSATION

9. STOCK COMPENSATION

The following tables summarize share-based compensation expenses relating to RSUs and stock options and the effect on basic and diluted loss per common share during the three and six month periods ended September 30, 2020 and 2019:

	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019			Six Months Ended September 30, 2020			Six Months Ended September 30, 2019
Vesting of stock options and restricted stock units	$	167,042		$	326,536		$	251,249		$	653,072
Total stock-based compensation expense	$	167,042		$	326,536		$	251,249		$	653,072
Weighted average number of common shares outstanding – basic and diluted		12,070,592			1,317,418			10,845,049			1,294,206
Basic and diluted loss per common share attributable to stock-based compensation expense	$	(0.01	)	$	(0.25	)	$	(0.02	)	$	(0.50	)

All of the stock-based compensation expense recorded during the six months ended September 30, 2020 and 2019, which totaled $251,249 and $653,072, respectively, is included in payroll and related expense in the accompanying condensed consolidated statements of operations.  Stock-based compensation expense recorded during the six months ended September 30, 2020 and 2019 represented an impact on basic and diluted loss per common share of $(0.02) and $(0.50), respectively.

We review share-based compensation on a quarterly basis for changes to the estimate of expected award forfeitures based on actual forfeiture experience. The cumulative effect of adjusting the forfeiture rate for all expense amortization is recognized in the period the forfeiture estimate is changed. The effect of forfeiture adjustments for the six months ended September 30, 2020 was insignificant.

Stock Option Activity and Approval of 2020 Plan

From February 2020 through May 2020, our compensation committee granted 521,476 stock options that were contingent upon stockholder approval of the 2020 Plan. Upon approval of the 2020 Plan at the Annual Meeting, these option grants were considered effective and no longer contingent as of that date.

The 2020 Plan approved by our stockholders at the Annual Meeting, authorizes up to 1,842,556 shares for issuance under stock option grants, RSUs or other forms of stock-based compensation. No future grants will be made under the 2010 Plan.

We did not issue any stock options during the three months ended September 30, 2019.

Options outstanding that have vested as of September 30, 2020 and options that are expected to vest subsequent to September 30, 2020 are as follows:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years
Vested		26,865	$	44.83		5.62
Expected to vest		521,476	$	2.18		9.42
Total		548,341

A summary of stock option activity during the six months ended September 30, 2020 is presented below:

	Amount		Range of Exercise Price		Weighted Average Exercise Price
Stock options outstanding at March 31, 2020		51,124		$18.75 - $187.50	$	44.12
Exercised		–		–	$	–
Granted		500,752		$1.28 – $2.45	$	1.49
Cancelled/Expired		3,535		$187.50	$	187.50
Stock options outstanding at September 30, 2020		548,341		$1.28 - $187.50	$	4.27
Stock options exercisable at September 30, 2020		26,865		$1.28 - $187.50	$	44.83

On September 30, 2020, our stock options had no intrinsic value since the closing price on that date of $1.35 per share was below the weighted average exercise price of our outstanding stock options.

At September 30, 2020, there was approximately $1,989,000 of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted average period of 3.0 years.