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6. STOCK OPTIONS
 6 Months Ended
Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6. STOCK OPTIONS


Our stock-based compensation arrangements include grants of stock options awards under the 2013 Stock Incentive Plan (the “Plan”).


 During the six months ended March 31, 2016, the Company issued, per board approval, stock options under the Plan to purchase an aggregate of 298,000 shares of the Company’s common stock to officers, directors, employees and consultants. The grant date fair value of these options, net of estimated forfeiture rate of 0%, was $39,496 using Black-Scholes option valuation models with the following assumptions: exercise price of $0.30 to $0.80, volatility of 83.6% to 104.7%, expected life of 4.5 years to 10 years, and risk-free rate of 1.11% to 1.74%. The Company is expensing these stock option awards on a straight-line basis over the requisite service period.  The Company recognized expense of $25,807 associated with stock option awards during the six months ended March 31, 2016.  The Company did not have any such expense for the six months ended March 31, 2015.  As of March 31, 2016, there was $13,689 of total unrecognized compensation cost related to an aggregate of 145,000 of non-vested stock option awards. These costs are expected to be recognized over a weighted-average period of .55 years for the stock options awards.


The following table summarizes stock option activity as of September 30, 2015 and for the six months ended March 31, 2016:


 

Number of Shares

Weighted Average Exercise Price

Weighted Average Remaining Contractual Life (Years)

Aggregate Intrinsic Value

Outstanding at September 30, 2015

28,333,333

$0.48

    

Granted

298,000

$0.48

   

Forfeited

(28,333,333)

$0.48

    

Outstanding at March 31, 2016

298,000

$0.48

9.9

14,500

Exercisable at March 31, 2016

153,000

$0.32

9.9

14,500