STOCK COMPENSATION

3 Months Ended

Jun. 30, 2023

Equity [Abstract]

STOCK COMPENSATION

8. 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 month periods ended June 30, 2023 and 2022:

	June 30, 2023			June 30, 2022
Vesting of stock options and restricted stock units	$	250,114		$	215,437
Total stock-based compensation expense	$	250,114		$	215,437
Weighted average number of common shares outstanding – basic and diluted		24,314,759			15,486,621
Basic and diluted loss per common share attributable to stock-based compensation expense	$	(0.01	)	$	(0.01	)

All of the stock-based compensation expense recorded during the three months ended June 30, 2023 and 2022, an aggregate of $250,114 and $215,437, respectively, is included in payroll and related expense in the accompanying condensed consolidated statements of operations. Stock-based compensation expense recorded during each of the three months ended June 30, 2023 and 2022 represented an impact on basic and diluted loss per common share of $(0.01) in each period.

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 three months ended June 30, 2023 was insignificant.

Stock Option Activity

We did not issue any stock options during the three months ended June 30, 2023 and 2022.

Stock options outstanding that have vested as of June 30, 2023 and stock options that are expected to vest subsequent to June 30, 2023 are as follows:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term in Years
Vested		842,610	$	2.44		7.68
Expected to vest		860,243	$	2.06		8.24
Total		1,702,853

A summary of stock option activity during the three months ended June 30, 2023 is presented below:

	Amount		Range of Exercise Price		Weighted Average Exercise Price
Stock options outstanding at March 31, 2023		1,718,253	$	.69 - 142.50	$	2.31
Exercised		–	$	–	$	–
Granted		–	$	–	$	–
Cancelled/Expired		15,400	$	1.21	$	1.21
Stock options outstanding at June 30, 2023		1,702,853	$	.69 - 142.50	$	2.25
Stock options exercisable at June 30, 2023		842,610	$	1.28 - 142.50	$	2.44

On June 30, 2023, our outstanding stock options had no intrinsic value since the closing share price on that date of $0.36 per share was below the weighted average exercise price of our outstanding stock options.

At June 30, 2023, there was approximately $1,719,000 of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted average period of 1.84 years.