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Share-based Compensation | 3 Months Ended
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Dec. 31, 2014
Share-based Compensation [Text Block] |
14. | Share-based Compensation
| (i) Options
| The Company grants share options to officers and employees and restricted shares of common stock to its non-employee directors as rewards for their services.
| Stock Option Plan
| In May 2005, the Board of Directors adopted the China BAK Battery, Inc. 2005 Stock Option Plan (the “Plan”). The Plan originally authorized the issuance of up to 800,000 shares of the Company’s common stock, pursuant to stock options granted under the Plan, or as grants of restricted stock. The exercise price of options granted pursuant to the Plan must be at least equal to the fair market value of the Company’s common stock at the date of the grant. Fair market value is determined at the discretion of the designated committee on the basis of reported sales prices for the Company’s common stock over a ten-business-day period ending on the grant date. The Plan will terminate on May 16, 2055. On July 28, 2008, the Company’s stockholders approved certain amendments to the Plan, including an amendment increasing the total number of shares available for issuance under the Plan to 1,600,000.
| On June 22, 2009, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of options to purchase 385,640 shares of the Company’s common stock to certain key employees, officers and consultants with an exercise price of $14.05 per share and a contractual life of 7 years. In accordance with the vesting provisions of the grants, the options will become vested and exercisable over five years in twenty equal quarterly installments on the first day of each fiscal quarter beginning on October 1, 2009.
| A summary of share option plan activity for these options as of September 30, 2014 and December 31, 2014 is presented below:
|  |  |  |  |  | Weighted |  |  |  |  |  |  |
|  |  |  |  |  | average |  |  | Weighted average |  |  | Aggregate |
|  |  | Number of |  |  | exercise price |  |  | remaining |  |  | intrinsic |
|  |  | shares |  |  | per share |  |  | contractual term |  |  | value (1) |
| Outstanding as of October 1, 2014 |  | 4,200 |  | $ | 14.05 |  |  | 1.7 years |  |  |  |
| Exercised |  | - |  |  |  |  |  |  |  |  |  |
| Cancelled |  | - |  |  |  |  |  |  |  |  |  |
| Forfeited |  | - |  |  |  |  |  |  |  |  |  |
| Outstanding as of December 31, 2014 |  | 4,200 |  | $ | 14.05 |  |  | 1.45 years |  | $ | - |
| Exercisable as of December 31, 2014 |  | 4,200 |  | $ | 14.05 |  |  | 1.45 years |  | $ | - |
| (1) | The intrinsic values of option at December 31, 2014 was zero since the per share market value of common stock of $1.85 was lower than the exercise price of the option of $14.05 per share.
The weighted average grant-date fair value of options granted on June 22, 2009 was $12.30 per share. The Company recorded non-cash share-based compensation expense of $32,932 and nil for the three months ended December 31, 2013 and 2014, respectively. As of December 31, 2014, there were no unrecognized compensation costs related to the above non-vested share options.
| (ii) Restricted Shares
| Pursuant to the Plan and in accordance with the China BAK Battery, Inc. Compensation Plan for Non-Employee Directors, the Compensation Committee of the Company’s Board of Directors recommended and approved the grant of 100,000 restricted shares to the Chief Executive Officer, Mr. Xiangqian Li with a fair value of $14.05 per share on June 22, 2009. In accordance with the vesting schedule of the grant, the restricted shares will vest in twenty equal quarterly installments on the first day of each fiscal quarter beginning on October 1, 2009.
| The Company recorded non-cash share-based compensation expense of $11,089 and nil for the three months ended December 31, 2013 and 2014, respectively, in respect of the restricted shares granted on June 22, 2009, which was allocated to general and administrative expenses.
| As of December 31, 2014, there was no unrecognized stock-based compensation associated with these restricted shares granted to Mr. Xiangqian Li.
| As the Company itself is an investment holding company which is not expected to generate operating profits to realize the tax benefits arising from its net operating loss carried forward, no income tax benefits were recognized for such stock-based compensation cost under the stock option plan for the three months ended December 31, 2013 and 2014.

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References No definition available. + Details
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