Note 12 – Stock Options

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.

A summary of the status of the Company’s stock option plans for the fiscal year ended March 31, 2022, and year to date September 30, 2022, and changes during the year are presented below (in number of options):

Remaining options available for grant were 138,500 as of September 30, 2022.

At September 2022, the unamortized compensation expense for stock options was $33,456. Unamortized compensation expense is expected to be recognized over a weighted-average period of approximately 2.2 years.

For the three months ended September 30, 2022, the Company recorded stock compensation costs of $6,234, as compared to $6,168 for the three months ended September 30, 2021. The Company recorded stock compensation costs of $12,469 as compared to $12,334 for the six months ended September 30, 2021.