Stock Options

9 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock Options

NOTE 8 - STOCK OPTIONS

During the nine months ended December 31, 2019 the Company issued 100,000 stock options at an exercise price of $.38 to directors as compensation for their service.

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. The following inputs were used to value each option grant:

● For nine months ended December 31, 2019: expected dividend yield of 0%, risk-free interest rate of 2.08%, volatility of 112.3% and an expected term of three years.

A summary of stock option activity for the nine months ended December 31, 2019 is summarized below:

	December 31, 2019
	Number of Options			Weighted Average Exercise Price
Stock Options:
Balance at beginning of period		2,210,000		$	0.25
Granted		100,000		$	0.38
Exercised		(60,000	)	$	0.17
Balance at end of period		2,250,000		$	0.26
Options exercisable at end of period		2,150,000		$	0.25

The following table summarizes information about employee stock options outstanding at December 31, 2019:

Range of Exercise Price		Number Outstanding at December 31, 2019		Weighted Average Remaining Contractural Life		Weighted Average Exercise Price		Number Exercisable at December 31, 2019		Weighted Average Exercise Price
	$.03 - $.32		1,570,000		3.5	$	0.16		1,570,000	$	0.16
	$.38 - $.55		680,000		8.1	$	0.42		580,000	$	0.50
	*		2,250,000						2,150,000

* Total number of options outstanding as of December 31, 2019 includes 500,000 options issued to five current and two former directors as compensation and 1,150,000 options issue to key employees that were not issued from the Plan.

As of December 31, 2019 there was unrecognized expense of approximately $5,000 remaining on options currently vesting over time with approximately three months remaining until these options are fully vested.

The intrinsic value of vested options as of December 31, 2019 was approximately $134,000.