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

15. Stock-Based Compensation (Tables)

12 Months Ended

Mar. 31, 2021

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

	Year Ended March 31,
	2021		2020
Fair value of the Company’s common stock on date of grant	$	8.03	$	4.36
Expected term		6.00 yrs		5.30 yrs
Risk-free interest rate		0.5800%		1.6993%
Dividend yield		0.00%		0.00%
Volatility		80.7%		122.4%
Fair value of options granted	$	5.48	$	3.69

Share-based awards compensation expense is as follows:

	Year Ended March 31,
	2021			2020
Cost of revenues	$	(27,000	)	$	94,000
Research and development		26,000			102,000
Selling, general and administrative		372,000			643,000
Total stock-based compensation	$	371,000		$	839,000

Stock-based awards outstanding at March 31, 2021 under the various plans are as follows:

			Unvested
Plan	Stock Options		Restricted Stock		Total
2006 Plan		4,431		–		4,431
2011 Plan		155,226		–		155,226
2016 Plan		107,912		833		108,745
		267,569		833		268,402
Stock-based awards available for grant as of March 31, 2021						438,616

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, 2020		378,000		$	26.55
Options granted		228,331			8.03
Options exercised		(93,301	)		5.48
Options forfeited		(218,976	)		7.03
Options expired		(26,485	)		116.51
Outstanding at March 31, 2021		267,569		$	25.16		8.12	$	646,878
Exercisable at March 31, 2021		144,238		$	39.81		6.70	$	265,927

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, 2020		1,666		$	13.68
Restricted stock awards granted		5,695			4.79
Restricted stock awards vested		(6,528	)		5.93
Unvested restricted stock awards outstanding at March 31, 2021		833		$	13.68