STOCK-BASED COMPENSATION

12 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

9. STOCK-BASED COMPENSATION

Summary of Stock Option Plans and Activity

In March 2008, our shareholders approved the 2008 Stock Option Plan (the “Plan”) to replace the 1997 Outside Director Stock Option Plan and the 1997 Employee Stock Option Plan. The purpose of the Plan was to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees. The Compensation Committee administered the Plan and approves the particular officers, directors or employees eligible for grants. Under the Plan, employees were granted the option to purchase our common shares at fair market value on the date of the grant. Generally, options granted vest and become exercisable in four equal installments commencing one year from date of grant and expire upon the earlier of the employee’s termination of employment with us, or ten years from the date of grant.

In March 2018, our shareholders approved the amendment and restatement of the Plan in the form of the Amended and Restated 2018 Equity Incentive Plan (the “Equity Plan”) and future equity awards will be granted from the Equity Plan. The purpose of the Equity Plan is to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees. The maximum number of new common shares that may be granted under the Equity Plan is 700 shares plus the remaining shares from the 2008 Stock Option Plan. No grants have been made from the Equity Plan as of September 30, 2018. At September 30, 2018, 815 shares remained available for grants under the Plan.

The Compensation Committee has also issued non-qualified stock option grants with vesting periods different from the Plan. As of September 30, 2018 and 2017, respectively, total non-qualified stock options outstanding were 15.

In fiscal 2018, 198 options were granted to employees and independent directors. No options were granted in fiscal 2017. The weighted-average assumptions used to compute the fair value of options granted for the fiscal year ended September 30, 2018 were as follows:

Risk-free interest rate	2.31	%
Dividend yield	0.00	%
Volatility of the expected market price of the Company's common shares	83.70	%
Expected life of the options (years)	8.0

A summary of our stock option activity for all options and related information for the years ended September 30, 2018 and 2017, respectively, is as follows (in thousands except for share prices):

	Options (shares)			Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life		Aggregate Intrinsic Value

Outstanding - October 1, 2017		140		$	1.91
Exercised		(3	)	$	1.40	$	1.36
Granted		198		$	1.94	$	1.52
Forfeited		(34	)	$	3.67
Outstanding - September 30, 2018		301		$	1.73	$	1.38		6.4	$	32

Exercisable at September 30, 2018		98		$	1.36	$	1.13		5.0	$	30

The aggregate intrinsic value is the product of the total options outstanding and the net positive difference of our common share price on September 30, 2018 and the options’ exercise price.

As of September 30, 2018, our total unrecognized compensation cost related to non-vested stock options was $182 and is expected to be recognized over a weighted-average service period of 1.0 year. Stock-based compensation expense for employee stock options for the years ended September 30, 2018 and 2017 was $134 and $19, respectively.