Sonoma Pharmaceuticals, Inc. Annual report pursuant to Section 13 and 15(d)

15. Stock-Based Compensation (Tables)

12 Months Ended

Mar. 31, 2020

The fair value of employee stock options was estimated using the following weighted-average assumptions:

	Year Ended March 31,
	2020		2019
Fair value of the Company’s common stock on date of grant	$	4.36	$	10.71
Expected term		5.3 yrs		5.38 yrs
Risk-free interest rate		1.6993%		2.61%
Dividend yield		0.00%		0.00%
Volatility		122.4%		121.5%
Fair value of options granted	$	3.69	$	9.00

Share-based awards compensation expense is as follows:

	Year Ended March 31,
	2020		2019
Cost of revenues	$	94,000	$	90,000
Research and development		102,000		107,000
Selling, general and administrative		643,000		1,379,000
Total stock-based compensation	$	839,000	$	1,576,000

			Unvested
Plan	Stock Options		Restricted Stock		Total
2006 Plan		7,000		–		7,000
2011 Plan		170,000		–		170,000
2016 Plan		157,000		2,000		159,000
Granted outside shareholder approved plans		44,000		–		44,000
		378,000		2,000		380,000
Stock-based awards available for grant as of March 31, 2020						442,000

Stock options award activity is as follows:

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Term		Aggregate Intrinsic Value
Outstanding at April 1, 2019		165,000		$	72.81
Options granted		278,000			4.37
Options exercised		–			–
Options forfeited		(45,000	)		9.53
Options expired		(20,000	)		140.00
Outstanding at March 31, 2020		378,000		$	26.55		7.54	$	128,000
Exercisable at March 31, 2020		126,000		$	66.04		3.38	$	–

Restricted stock award activity is as follows:

	Number of Shares			Weighted Average Award Date Fair Value per Share
Unvested restricted stock awards outstanding at April 1, 2019		4,000		$	27.99
Restricted stock awards granted		–			–
Restricted stock awards vested		(2,000	)		39.02
Restricted stock awards forfeited		–			48.15
Unvested restricted stock awards outstanding at March 31, 2020		2,000		$	13.68