XML 29 R13.htm IDEA: XBRL DOCUMENT
v3.6.0.2

SHARE-BASED PAYMENTS | 12 Months Ended
--- | ---
Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS The Company’s share-based compensation benefit and related income tax effects are as follows:
| Year ended September 30,
| 2016 |  | 2015
Share-based benefit | $ | (22,000 | ) |  | $ | (140,000 | )
Income tax effect | $ | — |  |  | $ | — |
Share-based compensation benefit recognized in (loss) earnings for the years ended September 30, 2016 and 2015 are reflected in “General and administrative” expenses in the Consolidated Statements of Operations. There was no impact on income taxes for the years ended September 30, 2016 and 2015 due to a full valuation allowance on the related deferred tax asset. Description of Share-Based Payment Arrangements The Company’s stock option plans are administered by the Compensation Committee of the Board of Directors. The stockholder-approved 2008 Equity Incentive Plan provides for the issuance of incentive stock options, nonstatutory stock options, stock options with stock appreciation rights, restricted stock, restricted stock units and performance units, qualified performance-based awards, and stock grants to employees, consultants and non-employee members of the Board of Directors. 800,000 shares of Barnwell common stock have been reserved for issuance and as of September 30, 2016, a total of 62,500 share options remain available for grant. Stock options grants include nonqualified stock options that have exercise prices equal to Barnwell’s stock price on the date of grant, vest annually over a service period of four years commencing one year from the date of grant and expire ten years from the date of grant. Certain options have stock appreciation rights that permit the holder to receive stock, cash or a combination thereof equal to the amount by which the fair market value, at the time of exercise of the option, exceeds the option price. Barnwell currently has a policy of issuing new shares to satisfy share option exercises when the optionee requests shares. As of September 30, 2016, there was $8,000 of total unrecognized compensation cost related to nonvested share options. That cost is expected to be recognized over 1.2 years. Equity-classified Awards Compensation cost for equity-classified awards is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period. A summary of the activity in Barnwell’s equity-classified share options from October 1, 2015 through September 30, 2016 is presented below:
Options | Shares |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at October 1, 2015 | 30,000 |  |  | $ | 3.01 |  |  |  |  |  |
Granted | — |  |  | — |  |  |  |  |  |
Exercised | — |  |  | — |  |  |  |  |  |
Expired/Forfeited | — |  |  | — |  |  |  |  |  |
Outstanding at September 30, 2016 | 30,000 |  |  | $ | 3.01 |  |  | 7.2 |  | $ | — |
Exercisable at September 30, 2016 | 15,000 |  |  | $ | 3.01 |  |  | 7.2 |  | $ | — |
Total share-based compensation expense for equity-classified awards vested in the years ended September 30, 2016 and 2015 was $10,000 and $20,000, respectively. Liability-classified Awards Compensation cost for liability-classified awards is remeasured to current fair value using a closed-form valuation model based on current values at each period end with the change in fair value recognized as an expense or benefit until the award is settled. The following assumptions were used in estimating fair value for all liability-classified share options outstanding:
| Year ended September 30,
| 2016 |  | 2015
Expected volatility range | 56.7% to 72.7% |  | 51.5% to 61.6%
Weighted-average volatility | 63.6% |  | 52.4%
Expected dividends | None |  | None
Expected term (in years) | 1.2 to 7.2 |  | 2.2 to 8.2
Risk-free interest rate | 0.6% to 1.4% |  | 0.6% to 1.9%
Expected forfeitures | None |  | None
The application of alternative assumptions could produce significantly different estimates of the fair value of share-based compensation, and consequently, the related costs reported in the Consolidated Statements of Operations. A summary of the activity in Barnwell’s liability-classified share options from October 1, 2015 through September 30, 2016 is presented below:
Options | Shares |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at October 1, 2015 | 591,250 |  |  | $ | 7.98 |  |  |  |  |  |
Granted | — |  |  | — |  |  |  |  |  |
Exercised | — |  |  | — |  |  |  |  |  |
Expired/Forfeited | — |  |  | — |  |  |  |  |  |
Outstanding at September 30, 2016 | 591,250 |  |  | $ | 7.98 |  |  | 2.5 |  | $ | — |
Exercisable at September 30, 2016 | 576,250 |  |  | $ | 8.11 |  |  | 2.4 |  | $ | — |
The following table summarizes the components of the total share-based compensation for liability-classified awards:
| Year ended September 30,
| 2016 |  | 2015
Due to vesting | $ | 4,000 |  |  | $ | 10,000 |
Due to remeasurement | (36,000 | ) |  | (170,000 | )
Total share-based compensation benefit for liability-based awards | $ | (32,000 | ) |  | $ | (160,000 | )

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration