Digital Turbine, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Description of Stock Plans (Tables)

Description of Stock Plans (Tables)

6 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

The following table summarizes stock option activity for the Stock Plans for the periods or as of the dates indicated:



	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, 2019	9,128,885		$	1.80	7.31	$	16,347
Granted	1,603,750		4.07
Forfeited / Cancelled	(384,827	)	1.75
Exercised	(1,623,000	)	1.73
Options Outstanding, September 30, 2019	8,724,808		2.24		7.28	36,707
Vested and expected to vest (net of estimated forfeitures) at September 30, 2019 (a)	7,663,942		2.19		7.08	32,623
Exercisable, September 30, 2019	4,879,562		$	2.15	6.38	$	20,978

(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 September 30, 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 September 30, 2019. The intrinsic value changes based on changes in the price of the Company's common stock.

Summary of Exercise Price

Information about options outstanding and exercisable at September 30, 2019 is as follows:



	Options Outstanding				Options Exercisable
Exercise Price	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	0.48	6,204	$	0.24
$0.51 - 1.00	1,722,307	$	0.73	7.09	856,800	$	0.72
$1.01 - 1.50	2,108,209	$	1.28	6.72	1,532,564	$	1.26
$1.51 - 2.00	1,074,723	$	1.66	8.48	446,746	$	1.65
$2.01 - 2.50	568,851	$	2.22	8.52	211,287	$	2.21
$2.51 - 3.00	540,000	$	2.59	4.60	540,000	$	2.59
$3.51 - 4.00	1,897,514	$	3.89	8.31	665,627	$	3.94
$4.01 - 4.50	505,000	$	4.14	5.06	505,000	$	4.14
$4.51 - 5.00	60,000	$	4.65	3.49	60,000	$	4.65
$5.01 and over	242,000	$	5.64	8.83	55,334	$	5.86
	8,724,808	2.24		7.28	4,879,562	2.15

Schedule of Options Vested and Intrinsic Value of Options Exercised

Other information pertaining to stock options for the Stock Plans for the six months ended September 30, 2019 and 2018, as stated in the table below, is as follows:



	September 30,
	2019		2018
Total fair value of options vested	$	953	$	855
Total intrinsic value of options exercised (a)	$	6,881	$	162

(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 six months ended September 30, 2019 and 2018.

Schedule of Market-based Assumptions

The market-based assumptions and estimates used in valuing the warrant liability include the following:



	September 30, 2019
Stock price volatility	60	%
Stock price (per share)	$6.45
Expected term	0.98 years
Risk-free rate (1)	1.75	%

^{(1) The Black-Scholes model assumes the continuously compounded equivalent (CCE) interest rate of}^1.75%^{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 for options granted during the six months ended September 30, 2019 are presented below.



		September 30, 2019
Risk-free interest rate		1.67% to 2.25%
Expected life of the options		5.35 to 9.64 years
Expected volatility		65% to 66%
Expected dividend yield		—%
Expected forfeitures		27% to 29%