Stock Option Plans

12 Months Ended

Mar. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement [Text Block]

16. Stock Option Plans

The Board of Directors (the “Board”) adopted on January 18, 2017, and ratified by the shareholders at the Annual Meeting on January 18, 2017, the Company’s 2016 Stock Option Plan (the “Plan”). The Plan provides for the granting of incentive stock options, by a committee to be appointed by the Board (both the Board and the Committee are referred to herein as the “Committee”) to directors, officers, and employees (excluding directors and officers who are not employees) to purchase shares of the Common Stock of the Company, par value $0.10 per share (the “Stock”), in accordance with the terms and provisions. The 2016 Plan reserves for issuance, options to purchase up to 250,000 shares of its common stock. Options granted under the plan are exercisable up to a period of five years from the date of grant at an exercise price which is not less than the fair market value of the common stock at the date of grant, except to a shareholder owning 10% or more of the outstanding common stock of the Company, as to which the exercise price must be not less than 110% of the fair market value of the common stock at the date of grant. Options are exercisable on a cumulative basis, 20% at or after each of the first, second, and third anniversary of the grant and 40% after the fourth year anniversary. During fiscal year 2022, the Company granted 23,000 stock options at a price of $2.99 per share, the fair market value on the grant date.

The fair value of each option awarded is estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatilities are based on historical volatility of Common Stock. The expected life of the options granted represents the period of time from date of grant to expiration (5 years). The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant. The per share weighted-average fair value of stock options granted for the years ended March 31, 2022, and 2021 were $1.02 and $1.03, respectively, on the date of grant using the Black Scholes option-pricing model with the following assumptions:

	Dividend			Risk-free
	Yield			Interest rate			Volatility			Life
2022		0.0	%		0.78	%		82.69	%	5 years
2021		0.0	%		0.50	%		37.32	%	5 years

A summary of the status of the Company’s stock option plans for the fiscal years ended March 31, 2022, and 2021 and changes during the years are presented below (in number of options):

	Number of Options			Average Exercise Price		Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding options on April 1, 2020		118,500		$	3.98	2.8 years	$	13,295
Options granted		15,000		$	3.11
Options exercised		-		$	-
Options canceled/forfeited		(35,000	)	$	5.85
Outstanding options on March 31, 2021		98,500		$	3.19	3.3 years	$	30,835
Options granted		23,000		$	2.94
Options exercised		-		$	-
Options canceled/forfeited		(10,000	)	$	3.19
Outstanding options on March 31, 2022		111,500		$	3.14	2.72 years	$	3,680
Vested Options:
March 31, 2022:		36,900		$	3.21	2.0 years	$	-
March 31, 2021:		19,700		$	3.22	2.8 years	$	5,567

Remaining options available for grant were 138,500 and 151,500 as of March 31, 2022, and 2021, respectively.

For the years ended March 31, 2022, and 2021, the unamortized compensation expense for stock options was $45,924 and $60,013, respectively. Unamortized compensation expense is expected to be recognized over a weighted-average period of approximately 2.16 years.

The compensation cost that has been charged was $19,733 and $21,996 for the fiscal years ended March 31, 2022, and 2021, respectively.