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Share-Based Compensation

12 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

NOTE 19 – SHARE-BASED COMPENSATION

On September 25, 2019, the Company cancelled all outstanding options granted to Saagar Govil, the Company’s Chairman and CEO and granted a stock option for 400,000 shares. These options have an exercise price of $1.90 per share, which vested upon grant and they expire after seven years. Additionally, Mr. Govil was granted additional future options;

(i) 100,000 shares of the Corporation’s common stock, CETX at an exercise price of $1.92 per share on September 25, 2021;

(ii) 100,000 shares of the Corporation’s common stock, CETX at an exercise price of $2.30 per share on September 25, 2023; and

(iii) 100,000 shares of the Corporation’s common stock, CETX at an exercise price of $2.76 per share on September 25, 2025.

On September 25, 2019, the Company granted to Aron Govil, the Company’s former Executive Director and CFO, a stock option for 200,000 shares. These options have an exercise price of $1.90 per share, which vested upon grant and they expire after seven years. Upon Mr. Govil’s retirement his outstanding options that were vested remain available to him until they expire. Mr. Govil’s remaining options are;

(i) 25,000 shares of the Corporation’s common stock, CETX at an exercise price of $1.92 per share on September 25, 2021;

(ii) 12,500 shares of the Corporation’s common stock, CETX at an exercise price of $2.30 per share on September 25, 2023; and

(iii) 8,333 shares of the Corporation’s common stock, CETX at an exercise price of $2.76 per share on September 25, 2025.

The following weighted-average assumptions were used to estimate the fair value of the common stock option liability at September 30, 2019;

	September 30, 2019
Expected term		5 Years
Risk-free interest rate		1.56	%
Expected volatility		94.74	%
Expected dividend yield		0	%

During the years ended September 30, 2020 and 2019 the Company recognized $191,416 and $622,232 of share-based compensation expense on its outstanding options, respectively.

As of September 30, 2020, there was $64,278 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 4 years.

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value
Outstanding at September 30, 2018		79,111		$	22.40		4.09	$	-
Options granted		1,050,000
Options exercised		-
Options forfeited		(4,111	)
Options cancelled		(75,000	)
Outstanding at September 30, 2019		1,050,000						$	-
Options granted		-
Options exercised		-
Options forfeited		-
Options cancelled		(104,167	)
Outstanding at September 30, 2020		945,833
Exercisable at September 30, 2020		737,500		$	1.71		3.00	$	-