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11. Stock-based Compensation
 3 Months Ended
Dec. 31, 2016
Share-based Compensation [Abstract]  
Stock-based Compensation

From time to time, the Company grants stock options and restricted stock awards to directors, officers and employees. These awards are valued at the grant date by determining the fair value of the instruments, net of estimated forfeitures. The value of each award is amortized on a straight-line basis over the requisite service period.

 

Stock Options

 

The following table summarizes stock option activity for the three months ended December 31, 2016:

 

       Weighted   Weighted     
       Average   Average     
   Number of   Exercise   Remaining     
   Shares   Price   Contractual Life   Intrinsic Value 
Outstanding at September 30, 2016   175,000   $11.24    3.75   $346,500 
Granted   –                
Exercised   –                
Forfeited   –                
Outstanding at December 31, 2016   175,000   $11.24    3.50   $2,236,875 
Exercisable at December 31, 2016   168,750   $10.70    3.55   $2,236,875 

 

The Company recognized compensation expense of $1,436 and $91,227 during the three months ended December 31, 2016 and 2015, respectively, related to stock option awards granted to certain employees and officers based on the grant date fair value of the awards, net of estimated forfeitures.

 

At December 31, 2016 the Company had $2,217 of unrecognized compensation expense (net of estimated forfeitures) associated with stock option awards which the company expects will be recognized through June of 2017.

 

The exercise price for stock options outstanding and exercisable at December 31, 2016 is as follows:

 

Outstanding   Exercisable 
Number of   Exercise   Number of   Exercise 
Options   Price   Options   Price 
 31,250   $5.00    31,250   $5.00 
 25,000    7.50    25,000    7.50 
 31,250    10.00    31,250    10.00 
 6,250    12.50    6,250    12.50 
 6,250    15.00    –    15.00 
 75,000    15.18    75,000    15.18 
 175,000         168,750      

  

The following table summarizes information about the Company’s non-vested shares as of December 31, 2016:

 

       Weighted 
       Average 
   Number of   Grant-Date 
Non-vested Shares  Shares   Fair Value 
Non-vested at September 30, 2016   6,250   $14.22 
Granted   –      
Vested   –      
Non-vested at December 31, 2016   6,250   $14.22 

 

No options were granted during 2016 and 2015, where the exercise price was less than the common stock price at the date of grant or where the exercise price was greater than the common stock price at the date of grant.

 

The assumptions used in calculating the fair value of stock options granted use the Black-Scholes option pricing model for options granted in 2015 were as follows:

 

Risk-free interest rate 1.01%
Expected life of the options 2.5 to 3.5 years
Expected volatility 140%
Expected dividend yield 0%