Stock Options

6 Months Ended

Sep. 30, 2018

Equity [Abstract]

Stock Options

NOTE 8 - STOCK OPTIONS

During the six months ended September 30, 2018, the Company issued 100,000 stock options to directors as compensation for their service.

Employee stock option compensation expense includes the estimated fair value of options granted amortized on a straight-line basis over the requisite service period for the entire portion of the award. For the three months ended September 30, 2018 and 2017, stock option expense was approximately $10,000 and $48,000, respectively. For the six months ended September 30, 2018 and 2017, the stock option expense was approximately $21,000 and $103,000, respectively.

The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option-pricing model with the assumptions outlined below. The expected volatility is based upon historical volatility of our stock and other contributing factors. The expected term is based upon observation of actual time elapsed between date of grant and exercise of options for all employees.

● For the six months ended September 30, 2018: expected dividend yield of 0%, risk-free interest rate of 2.08%, volatility of 216.3% and an expected term of three years.

A summary of stock option activity for the six months ended September 30, 2018 is summarized below:

	September 30, 2018
	Number of Options			Weighted Average Exercise Price
Stock Options:
Balance at beginning of period		2,330,000		$	0.22
Granted		100,000		$	0.55
Exercised		(80,000	)	$	0.08
Forfeited		-			-
Balance at end of period		2,350,000		$	0.24
Options exercisable at end of period		2,250,000		$	0.23

The following table summarizes information about employee stock options outstanding at September 30, 2018:

Range of Exercise Price	Number Outstanding at September 30, 2018		Weighted Average Remaining Contractural Life		Weighted Average Exercise Price		Number Exercisable at September 30, 2018		Weighted Average Exercise Price
$.03 - $.33		1,770,000		4.1	$	0.15		1,770,000	$	0.15
$.45 - $.93		580,000		8.9	$	0.50		480,000	$	0.49
		2,350,000						2,250,000