Quarterly report pursuant to Section 13 or 15(d)

9. STOCK COMPENSATION

v3.19.3.a.u2
9. STOCK COMPENSATION
9 Months Ended
Dec. 31, 2019
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 nine month periods ended December 31, 2019 and 2018:

 

    Three Months
Ended
December 31,
2019
    Three Months
Ended
December 31,
2018
    Nine Months
Ended
December 31,
2019
    Nine Months
Ended
December 31,
2018
 
Vesting of stock options and restricted stock units   $ 102,576     $ 344,854     $ 755,648     $ 944,512  
Total stock-based compensation expense   $ 102,576     $ 344,854     $ 755,648     $ 944,512  
                                 
Weighted average number of common shares outstanding – basic and diluted     2,887,883       1,203,344       1,821,557       1,191,012  
                                 
Basic and diluted loss per common share attributable to stock-based compensation expense   $ (0.04 )   $ (0.29 )   $ (0.41 )   $ (0.79 )

 

All of the stock-based compensation expense recorded during the nine months ended December 31, 2019 and 2018, which totaled $755,648 and $944,512, respectively, is included in payroll and related expense in the accompanying condensed consolidated statements of operations.  Stock-based compensation expense recorded during the nine months ended December 31, 2019 and 2018 represented an impact on basic and diluted loss per common share of $(0.41) and $(0.79), 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 nine months ended December 31, 2019 was insignificant.

   

Stock Option Activity

 

We did not issue any stock options during the three or nine months ended December 31, 2019.

 

Options outstanding that have vested as of December 31, 2019 and options that are expected to vest subsequent to December 31, 2019 are as follows:

 

    Number of
Shares
    Weighted
Average
Exercise
Price
    Weighted
Average
Remaining
Contractual
Term in
Years
 
Vested     22,894     $ 75.24       4.99  
Expected to vest     28,230     $ 18.89       7.99  
Total     51,124                  

  

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

 

    Amount     Range of
Exercise Price
    Weighted
Average
Exercise
Price
 
Stock options outstanding at March 31, 2019     59,111     $ 18.75 - 187.50     $ 56.85  
Adjustment for reverse split     14       n/a       n/a  
Exercised         $     $  
Granted         $     $  
Cancelled/Expired     (8,001 )   $ 75.00 - 142.50     $ 138.75  
Stock options outstanding at December 31, 2019     51,124     $ 18.75 - 187.50     $ 44.12  
Stock options exercisable at December 31, 2019     22,894     $ 25.20 - 187.50     $ 75.24  

 

On December 31, 2019, our stock options had no intrinsic value since the closing price on that date of $0.96 per share was below the weighted average exercise price of our outstanding stock options.

 

At December 31, 2019, there was approximately $1,418,000 of unrecognized compensation cost related to share-based payments, which is expected to be recognized over a weighted average period of 3.5 years.