Description of Stock Plans (Tables)
|
12 Months Ended |
Mar. 31, 2019 |
|---|
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
|
| Summary of Options Granted |
The following table summarizes stock option activity for the Stock Plans during the years ended March 31, 2019 and 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
Shares
|
|
Weighted Average
Exercise Price
(per share)
|
|
Weighted Average
Remaining Contractual
Life (in years)
|
|
Aggregate Intrinsic
Value
(in thousands)
|
Options Outstanding, March 31, 2017 |
|
9,735,778 |
|
|
$ |
2.56 |
|
|
7.95 |
|
$ |
801 |
|
Granted |
|
1,963,378 |
|
|
1.53 |
|
|
|
|
|
Forfeited / Canceled |
|
(1,698,906 |
) |
|
4.40 |
|
|
|
|
|
Exercised |
|
(258,281 |
) |
|
1.04 |
|
|
|
|
|
Options Outstanding, March 31, 2018 |
|
9,741,969 |
|
|
2.08 |
|
|
7.82 |
|
6,286 |
|
Granted |
|
1,463,925 |
|
|
1.69 |
|
|
|
|
|
Forfeited / Canceled |
|
(1,552,192 |
) |
|
3.72 |
|
|
|
|
|
Exercised |
|
(524,817 |
) |
|
0.94 |
|
|
|
|
|
Options Outstanding, March 31, 2019 |
|
9,128,885 |
|
|
$ |
1.80 |
|
|
7.31 |
|
$ |
16,347 |
|
Vested and expected to vest (net of estimated forfeitures) at March 31, 2019 (a) |
|
8,147,149 |
|
|
$ |
1.86 |
|
|
7.18 |
|
$ |
14,224 |
|
Exercisable, March 31, 2019 |
|
5,800,564 |
|
|
$ |
2.06 |
|
|
6.75 |
|
$ |
9,237 |
|
(a)For options vested and expected to vest, options exercisable, and options outstanding, the aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Digital Turbine's closing stock price on March 31, 2019 and the exercise price multiplied by the number of in-the-money options) that would have been received by the option holders had the holders exercised their options on March 31, 2019. The intrinsic value changes based on changes in the price of Digital Turbine's common stock.
|
| Exercise Price for Options Outstanding and Options Exercisable |
Information about options outstanding and exercisable at March 31, 2019 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options Outstanding |
|
Options Exercisable |
|
|
Number of Shares |
|
Weighted-Average Exercise Price |
|
Weighted-Average Remaining Life (Years) |
|
Number of Shares |
|
Weighted-Average Exercise Price |
$0.00 - 0.50 |
|
6,204 |
|
|
$ |
0.24 |
|
|
0.99 |
|
6,204 |
|
|
$ |
0.24 |
|
$0.51 - 1.00 |
|
2,401,184 |
|
|
0.73 |
|
|
7.58 |
|
1,334,293 |
|
|
0.73 |
|
$1.01 - 1.50 |
|
2,507,881 |
|
|
1.28 |
|
|
7.36 |
|
1,665,100 |
|
|
1.27 |
|
$1.51 - 2.00 |
|
1,376,044 |
|
|
1.65 |
|
|
8.88 |
|
465,512 |
|
|
1.62 |
|
$2.01 - 2.50 |
|
688,072 |
|
|
2.20 |
|
|
9.06 |
|
179,955 |
|
|
2.17 |
|
$2.51 - 3.00 |
|
769,000 |
|
|
2.61 |
|
|
5.31 |
|
769,000 |
|
|
2.61 |
|
$3.51 - 4.00 |
|
717,500 |
|
|
3.96 |
|
|
5.54 |
|
717,500 |
|
|
3.96 |
|
$4.01 - 4.50 |
|
553,000 |
|
|
4.14 |
|
|
5.60 |
|
553,000 |
|
|
4.14 |
|
$4.51 - 5.00 |
|
60,000 |
|
|
4.65 |
|
|
3.99 |
|
60,000 |
|
|
4.65 |
|
$5.01 and over |
|
50,000 |
|
|
5.89 |
|
|
5.45 |
|
50,000 |
|
|
5.89 |
|
|
|
9,128,885 |
|
|
|
|
|
|
5,800,564 |
|
|
|
|
| Schedule of Intrinsic Value of stock option |
Other information pertaining to stock options for the Stock Plans is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, |
|
|
2019 |
|
2018 |
|
2017 |
Total fair value of options vested |
|
$ |
1,977 |
|
|
$ |
3,335 |
|
|
$ |
3,519 |
|
Total intrinsic value of options exercised (a) |
|
$ |
603 |
|
|
$ |
202 |
|
|
$ |
10 |
|
|
|
(a) |
The total intrinsic value of options exercised represents the total pre-tax intrinsic value (the difference between the stock price at exercise and the exercise price multiplied by the number of options exercised) that was received by the option holders who exercised their options during the fiscal year. |
|
| Fair Value of Options Granted Using the Black-Scholes Option-Pricing Model |
The market-based assumptions and estimates used in valuing the warrant liability include amounts in the following amounts:
|
|
|
|
|
March 31, 2019 |
Stock price volatility |
60 |
% |
Probability of change in control |
1.75 |
% |
Stock price (per share) |
$3.50 |
Expected term |
1.50 years |
|
Risk-free rate (1) |
2.31 |
% |
Assumed early conversion/exercise price (per share) |
$2.73 |
(1) The Monte Carlo simulation assumes the continuously compounded equivalent (CCE) interest rate of 2.31% based on the average of the 1-year and 2-year U.S. Treasury securities as of the valuation date.
The market-based assumptions and estimates used in valuing the convertible note embedded derivative liability include amounts in the following amounts:
|
|
|
|
|
March 31, 2019 |
Stock price volatility |
60 |
% |
Probability of change in control |
1.75 |
% |
Stock price (per share) |
$3.50 |
Expected term |
1.50 years |
|
Risk-free rate (1) |
2.31 |
% |
Assumed early conversion/exercise price (per share) |
$2.73 |
(1) The Monte Carlo simulation assumes the continuously compounded equivalent (CCE) interest rate of 2.31% based on the average of the 1-year and 2-year U.S. Treasury securities as of the valuation date.
The assumptions utilized in this model during fiscal 2019, 2018, and 2017 are presented below.
|
|
|
|
|
|
|
|
|
|
Year ended March 31, |
|
|
2019 |
|
2018 |
|
2017 |
Risk-free interest rate |
|
2.38% to 2.96% |
|
1.77% to 2.73% |
|
1.34% to 2.38% |
Expected life of the options |
|
5.52 to 9.19 years |
|
5.65 to 9.84 years |
|
5.69 to 9.84 years |
Expected volatility |
|
66% |
|
66% to 73% |
|
73% to 130% |
Expected dividend yield |
|
—% |
|
—% |
|
—% |
Expected forfeitures |
|
29% |
|
28% to 29% |
|
10% to 35% |
|
| Stock Compensation Expense |
Total stock compensation expense for the Company’s equity plans, which includes both stock options, restricted stock, and warrants issued is included in the following statements of operations components. See Note 12 "Capital Stock Transactions" regarding restricted stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended March 31, |
|
|
2019 |
|
2018 |
|
2017 |
Product development |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Sales and marketing |
|
— |
|
|
— |
|
|
— |
|
General and administrative |
|
2,531 |
|
|
2,978 |
|
|
3,760 |
|
Total |
|
$ |
2,531 |
|
|
$ |
2,978 |
|
|
$ |
3,760 |
|
|