Annual report pursuant to Section 13 and 15(d)

Description of Stock Plans (Tables)

v3.19.1
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