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13. OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
9 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
OTHER SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

Related Party Transactions with Ronald P. Erickson

 

On October 4, 2019, Ronald P. Erickson voluntarily cancelled a stock option grant for 1,000,000 shares with an exercise price of $3.03 per share. The grant was related to performance and was not vested.

 

On November 4, 2019, the Company granted a stock option grant to Ronald P. Erickson for 1,200,000 shares with an exercise price of $1.10 per share. The performance grant expires November 4, 2024 and vests upon uplisting to the NASDAQ or NYSE exchanges.

 

On January 1, 2020, the Company issued 100,000 shares of restricted common stock to Ronald P. Erickson. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $190,000.

 

On April 29, 2020, the Company increased the salary of Ronald P. Erickson by $20,000 per year. On June 1, 2020, the Company began paying Mr. Erickson $10,000 per month for his work on Particle, Inc.

 

Mr. Erickson and/or entities with which he is affiliated also have accrued compensation, travel and interest of approximately $575,797 and $487,932 as of June 30, 2020 and September 30, 2019, respectively.

 

On May 21, 2020, Particle approved a stock option grant for 1,500,000 shares at $0.10 per share to Ronald P. Erickson. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. The stock option grant was finalized during July 2020.

 

Related Party Transaction with Phillip A. Bosua

 

On October 4, 2019, Philip A. Bosua voluntarily cancellated a stock option grant for 1,000,000 shares with an exercise price of $3.03 per share. The grants was related to performance and was not vested.

 

On November 4, 2019, the Company granted a stock option grant to Philip A. Bosua for 1,200,000 shares with an exercise price of $1.10 per share. The performance grant expires November 4, 2024 and vests upon FDA approval of the UBAND blood glucose monitor.

 

On January 1, 2020, the Company issued 150,000 shares of restricted common stock to Phillip A. Bosua. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $285,000.

 

On April 29, 2020, the Company increased the salary of Phillip A. Bosua by $20,000 per year. On June 1, 2020, the Company began paying Mr. Bosua $10,000 per month for his work on Particle, Inc.

 

On May 21, 2020, Particle approved a stock option grant for 1,500,000 shares at $0.10 per share to Phillip A. Bosua. The stock option grant vests (i) 33.3% upon issuance; (ii) 33.3% after the first sale; and (iii) 33.4% after one million in sales are achieved. The stock option grant was finalized during July 2020.

 

Other Stock Option Grants and Cancellations

 

On November 4, 2019, the Company granted stock option grants to two directors totaling 105,000 shares with an exercise price of $1.10 per share. The stock option grants expire in five years. The stock option grants vested immediately.

 

On January 1, 2020, the Company issued 120,000 shares of restricted common stock to three directors. The shares were issued in accordance with the 2011 Stock Incentive Plan and were valued at $1.90 per share, the market price of the Company’s common stock, or $228,000.