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SHARE-BASED COMPENSATION
 12 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION

NOTE 15 – 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.

 

 

(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.

 

As part of the settlement agreement with Mr. Govil, all his options were cancelled.

 

On January 6, 2021, the Company granted Christopher C. Moore, the Company’s CFO, a stock option for 150,000 shares. These options have an exercise price of $1.58 per share, which vest over five years, and they expire after five years. These options were cancelled upon Mr. Moore’s departure from the Company.

 

On April 28, 2022, the Company granted Brian Kwon, Manpreet Singh, Chris Wagner, and Metodi Filipov, all Directors of the Company, stock options for 102,565 shares each, 410,260 in the aggregate. These options have an exercise price of $0.39 per share, which vest over one year, and expire after five years.

 

The following weighted-average assumptions were used to estimate the fair value of the common stock option liability for the options granted to Brian Kwon, Manpreet Singh, Chris Wagner, and Metodi Filipov;

 

 

   April 28, 2022 
Expected term   5 Years 
Risk-free interest rate   2.92%
Expected volatility   110.56%
Expected dividend yield   0%

 

During the years ended September 30, 2022, and 2021 the Company recognized $155,505 and $156,419 of share-based compensation expense on its outstanding options, respectively.

 

As of September 30, 2022, there was $221,380 of total unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted-average period of 3.25 years.

 

 

   Number of Options   Weighted Average Exercise Price   Weighted Average Remaining Contractual Term (in years)   Aggregate Intrinsic Value 
Outstanding at September 30, 2021   950,000   $1.74    2.5    $- 
Options granted   410,260   $0.39    0.57    $- 
Options exercised                    
Options forfeited                    
Options cancelled   (150,000)  $1.34    4.00    $- 
Outstanding at September 30, 2022   1,210,260   $1.34    3.25    $- 
Vested and exercisable at September 30, 2022   650,000   $1.80    3.25   $-