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STOCK OPTIONS AND WARRANTS | 6 Months Ended
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Mar. 31, 2022
Share-Based Payment Arrangement [Abstract] |
STOCK OPTIONS AND WARRANTS | 7. STOCK OPTIONS AND WARRANTS Options During the six months ended March 31, 2022, the Company granted no new stock options, had 203,166 of stock options that were forfeited because of the termination of employment, and issued 14,000 shares upon the exercise of outstanding stock options. The following table summarizes stock option activity for six months ended March 31, 2022: SUMMARY OF STOCK OPTION ACTIVITY
|  | Number of Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (years) |  |  | Aggregate Intrinsic Value |
Outstanding at September 30, 2021 |  |  | 4,511,691 |  |  | $ | 4.73 |  |  |  | 8.4 |  |  | $ | 452,206 |
Granted |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Exercised |  |  | (14,000 | ) |  |  | 0.90 |  |  |  |  |  |  |  |  |
Expired |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Forfeited |  |  | (203,166 | ) |  |  | 13.75 |  |  |  |  |  |  |  |  |
Outstanding at March 31, 2022 |  |  | 4,294,525 |  |  | $ | 4.32 |  |  |  | 8.0 |  |  | $ | 397,300 |
Exercisable at March 31, 2022 |  |  | 1,809,800 |  |  | $ | 4.91 |  |  |  | 7.0 |  |  | $ | 321,900 |
The Company is expensing these stock option awards on a straight-line basis over the requisite service period. The Company recognized stock option expense of $2,059,634 for the six months ended March 31, 2022. Unamortized option expense as of March 31, 2022, for all options outstanding amounted to $2,667,796. These costs are expected to be recognized over a weighted average period of 1.2 years. The Company recognized stock option expense of $6,496,304 for the six months ended March 31, 2021. A summary of the status of the Company’s nonvested options as of March 31, 2022, is presented below: SUMMARY OF UNVESTED SHARES Nonvested options
|  | Number of Nonvested Options |  |  | Weighted Average Grant Date Fair Value |
Nonvested options at September 30, 2021 |  |  | 2,870,799 |  |  | $ | 5.02 |
Granted |  |  | - |  |  |  | - |
Forfeited |  |  | (36,500 | ) |  |  | 3.89 |
Vested |  |  | (349,574 | ) |  |  | 5.95 |
Nonvested options at March 31, 2022 |  |  | 2,484,725 |  |  | $ | 4.90 |
Warrants On June 23, 2020, as part of our agreement with Benchmark Company, LLC, the underwriter of the Company’s June 2020 registered public offering of common stock, we issued 40,250 warrants to purchase our common stock at an exercise price of $9.00 a share. These warrants became exercisable on December 23, 2020 and expire on June 18, 2025. On March 19, 2021, we entered into an underwriting agreement in connection with our registered public offering (the “Offering”) of (i) 2,777,777 units (the “2021 Units”), at a price to the public of $4.50 per 2021 Unit, with each 2021 Unit consisting of (a) one share of our common stock, (b) one Series A Warrant, and (c) one Series B Warrant (together with the Series A Warrants, the “2021 Warrants”), and (ii) 416,666 Series A Warrants and 416,666 Series B Warrants, each pursuant to the underwriter’s full exercise of their overallotment option with respect to such warrants. Each Series A Warrant entitles the registered holder to purchase one share of our common stock at an exercise price of $4.50 per share. Each Series B Warrant entitles the registered holder thereof to purchase one-half of a share of our common stock at an exercise price of $5.85 per whole share. The 2021 Warrants have a term of 5 years. The Series A and Series B Warrant holders are obligated to pay the exercise price in cash upon exercise of the 2021 Warrants unless we fail to maintain a current prospectus relating to the common stock issuable upon the exercise of the 2021 Warrants (in which case, the 2021 Warrants may only be exercised via a “cashless” exercise provision). The following table summarizes warrant activity for the six months ended March 31, 2022: SCHEDULE OF WARRANT ACTIVITY
|  | Number of Shares Issuable Upon Exercise of Warrants |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Life (years) |  |  | Aggregate Intrinsic Value |
Outstanding at September 30, 2021 |  |  | 4,831,915 |  |  | $ | 4.98 |  |  |  | 4.5 |  |  | $ | - |
Issued |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Exercised |  |  | (384,447 | ) |  |  | 4.51 |  |  |  |  |  |  |  |  |
Expired |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Outstanding at March 31, 2022 |  |  | 4,447,468 |  |  | $ | 5.02 |  |  |  | 4.0 |  |  |  | - |
Exercisable at March 31, 2022 |  |  | 4,447,468 |  |  | $ | 5.02 |  |  |  | 4.0 |  |  | $ | - |
In the six months ended March 31, 2022, we issued 384,447 shares of common stock related to exercises of 2021 Warrants, including 380,447 shares of common stock issued upon exercise of 380,447 Series A Warrants and 4,000 shares of common stock issued upon exercise of 8,000 Series B Warrants. In connection with such exercises, in the six months ended March 31, 2022, we received aggregate net proceeds of $1,702,596.

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