Stock-Based Compensation

12 Months Ended

Mar. 31, 2014

Note 11: Stock-Based Compensation

On June 7, 2013, the Company executed separate agreements with three non-employees for consulting services to be performed. Each of the three agreements call for 315,000 non-statutory stock options to be issued with an exercise price $0.15 per share. 15,000 shares shall invest immediately and 5,000 shares shall vest each of the first 60 months starting July 1, 2013. No additional shares will be vested after the continuous employment with the Company if a consultant is terminated for any reason.

On August 26, 2013 and September 11, 2013, the Company executed separate agreements with two non-employees for consulting services to be performed. Each of the agreements call for 315,000 non-statutory stock options to be issued with an exercise price of $0.15 per share. Under each agreement, 15,000 shares vest immediately, and 5,000 shares shall vest each of the first 60 months starting October 1, 2013. No additional shares will be vested after the continuous employment with the Company if a consultant is terminated for any reason.

On April 2, 2012, Brendan Vogel, the owner of 6,000,000 shares of common stock of Mister Goody, Inc. (the "Registrant"), returned 500,000 common shares to the Registrant for cancellation in exchange for no consideration.

The stock options issued during fiscal year 2014 were valued based on the grant date fair value of the instruments, net of estimated forfeitures, using a Black-Scholes option pricing model with the following assumptions:


	2014		2013

Volatility		148-193.8%		148-193.8%
Risk-free interest rate		1.03-2.31%		1.03-2.31%
Expected term		5-7.5 years		5-6.3 years
Forfeiture rate		0-10%		0-10%
Dividend yield rate		0%		0%

The volatility used was based on historical volatility of similar sized companies due to lack of historical data of the Company's stock price. The risk free interest rate was determined based on treasury securities with maturities equal to the expected term of the underlying award. The expected term was determined based on the simplified method outlined in Staff Accounting Bulletin No. 110. Stock option awards are expensed on a straight-line basis over the requisite service period. During the year ended March 31, 2014, and 2013 the Company recognized a total of $48,235 and $48,524 respectively, of compensation expense. Unamortized compensation expense related to the 2,075,000 options outstanding at March 31, 2014 is $247,844.

The following summarizes stock option activity for the year ended March 31, 2014 and 2013:


	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at March 31, 2012		240,000		$	0.02		9.06	$	19,784
Granted at market price		500,000			0.10
Exercised		-
Forfeited		(240,000	)		0.02
Outstanding at March 31, 2013		500,000			0.10		9.01	$	50,000
Granted		1,575,000			0.02		9.19		0
Exercised		-			-		-		-
Forfeited		-			-		-		-
Outstanding at March 31, 2014		2,075,000		$	0.15		8.98		0
Exercisable		770,000		$	0.09		8.45	$	-

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

Mister Goody, Inc. 10-K