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STOCK OPTIONS AND WARRANTS | 3 Months Ended
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Dec. 31, 2013
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] |
STOCK OPTIONS AND WARRANTS | NOTE F - STOCK OPTIONS AND WARRANTS Warrants The following table summarizes the changes in warrants outstanding and the related prices for the shares of Common Stock issued to non-employees of the Company. These warrants were granted in lieu of cash compensation for services performed or financing expenses in connection with the sale of Common Stock.
|  |  |  |  |  |  | Warrants |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  | Outstanding |  |  | Weighted |  |  |  |  |  | Exercisable |
|  |  |  |  |  |  | Remaining |  |  | Average |  |  | Weighted |  |  | Weighted |
| Exercise |  |  | Number |  |  | Contractual |  |  | Exercise |  |  | Average |  |  | Average |
| Prices |  |  | Outstanding |  |  | Life (Years) |  |  | Price |  |  | Exercisable |  |  | Exercise Price |
$ | 0.0400 |  |  |  | 3,000,000 |  |  |  | 1.66 |  |  | $ | 0.0400 |  |  |  | 3,000,000 |  |  | $ | 0.0400 |
$ | 0.0441 |  |  |  | 510,784 |  |  |  | 3.54 |  |  | $ | 0.0441 |  |  |  | 510,784 |  |  | $ | 0.0441 |
$ | 0.0475 |  |  |  | 3,789,489 |  |  |  | 4.54 |  |  | $ | 0.0475 |  |  |  | 3,789,489 |  |  | $ | 0.0475 |
$ | 0.0553 |  |  |  | 226,081 |  |  |  | 4.02 |  |  | $ | 0.0553 |  |  |  | 226,081 |  |  | $ | 0.0553 |
$ | 0.0600 |  |  |  | 2,000,000 |  |  |  | 0.14 |  |  | $ | 0.0600 |  |  |  | 2,000,000 |  |  | $ | 0.0600 |
$ | 0.0710 |  |  |  | 1,000,000 |  |  |  | 1.07 |  |  | $ | 0.0710 |  |  |  | 1,000,000 |  |  | $ | 0.0710 |
$ | 0.0900 |  |  |  | 6,900,000 |  |  |  | 2.67 |  |  | $ | 0.0900 |  |  |  | 6,900,000 |  |  | $ | 0.0900 |
$ | 0.1790 |  |  |  | 100,000 |  |  |  | 1.85 |  |  | $ | 0.1790 |  |  |  | 100,000 |  |  | $ | 0.1790 |
$ | 0.2140 |  |  |  | 100,000 |  |  |  | 2.35 |  |  | $ | 0.2140 |  |  |  | 100,000 |  |  | $ | 0.2140 |
$ | 0.2431 |  |  |  | 22,411,764 |  |  |  | 4.55 |  |  | $ | 0.2431 |  |  |  | 22,411,764 |  |  | $ | 0.2431 |
$ | 0.5000 |  |  |  | 1,300,000 |  |  |  | 0.02 |  |  | $ | 0.5000 |  |  |  | 1,300,000 |  |  | $ | 0.5000 |
|  |  |  |  | 41,338,118 |  |  |  | 3.56 |  |  | $ | 0.1762 |  |  |  | 41,338,118 |  |  | $ | 0.1762 |
Transactions involving warrants are summarized as follows:
|  | Number of Shares |  |  | Weighted Average Price Per Share |
Balance at October 1, 2013 |  |  | 59,033,305 |  |  | $ | 0.0196 |
Granted |  |  | — |  |  |  | — |
Exercised |  |  | (17,695,187) |  |  |  | (0.2431 | )
Cancelled or expired |  |  | — |  |  |  | — |
Balance, December 31, 2013 |  |  | 41,338,118 |  |  | $ | 0.1762 |
Transactions involving warrants are summarized as follows: On December 16, 2013, Crede effected the cashless exercise of 10,695,187 Series A Warrants and 7,000,000 Series B Warrants, and the Company thereupon issued to Crede an aggregate of 18,823,073 shares of its Common Stock. Employee Stock Options In 2005, the Board of Directors and holders of a majority of the outstanding shares of Common Stock approved the 2005 Incentive Stock Plan, In 2007, 2008 and 2012, the Board of Directors and holders of a majority of the outstanding shares of Common Stock approved various increases in the number of shares of Common Stock that can be issued as stock awards and stock options thereunder to an aggregate of 350,000,000 shares and the number of shares of Common Stock that can be covered by awards made to any participant in any calendar year to 50,000,000 shares. The 2005 Incentive Stock Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to the Company’s success with an award of options to purchase shares of Common Stock. As of December 31, 2013, a total of 12,675,000 shares have been issued and options to purchase 196,038,972 shares have been granted under the 2005 Incentive Stock Plan. The following table summarizes the changes in options outstanding and the related prices for the shares of Common Stock issued to employees of the Company under the 2005 Incentive Stock Plan:
| Options Outstanding |  |  | Options Exercisable |
| Exercise Prices |  |  | Number Outstanding |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price |  |  | Number Exercisable |  |  | Weighted Average Exercise Price |
$ | 0.0500 |  |  |  | 24,000,000 |  |  |  | 1.35 |  |  | $ | 0.0500 |  |  |  | 24,000,000 |  |  | $ | 0.0500 |
$ | 0.0585 |  |  |  | 50,000,000 |  |  |  | 4.54 |  |  | $ | 0.0585 |  |  |  | 50,000,000 |  |  | $ | 0.0585 |
$ | 0.0600 |  |  |  | 30,000,000 |  |  |  | 1.51 |  |  | $ | 0.0600 |  |  |  | 30,000,000 |  |  | $ | 0.0600 |
$ | 0.0650 |  |  |  | 634,825 |  |  |  | 2.93 |  |  | $ | 0.06500 |  |  |  | 634,825 |  |  | $ | 0.0650 |
$ | 0.0680 |  |  |  | 4,770,000 |  |  |  | 2.92 |  |  | $ | 0.06800 |  |  |  | 4,770,000 |  |  | $ | 0.0680 |
$ | 0.0700 |  |  |  | 2,850,000 |  |  |  | 1.42 |  |  | $ | 0.0700 |  |  |  | 2,275,000 |  |  | $ | 0.0700 |
$ | 0.0866 |  |  |  | 7,377,000 |  |  |  | 4.96 |  |  | $ | 0.0866 |  |  |  | 2,000,000 |  |  | $ | 0.0866 |
$ | 0.0900 |  |  |  | 1,500,000 |  |  |  | 1.67 |  |  | $ | 0.0900 |  |  |  | 1,500,000 |  |  | $ | 0.0900 |
$ | 0.0970 |  |  |  | 56,777,780 |  |  |  | 4.96 |  |  | $ | 0.097 |  |  |  | 3,777,780 |  |  | $ | 0.0970 |
$ | 0.1100 |  |  |  | 5,400,000 |  |  |  | 4.46 |  |  | $ | 0.1100 |  |  |  | 5,400,000 |  |  | $ | 0.1100 |
$ | 0.1160 |  |  |  | 250,000 |  |  |  | 4.98 |  |  | $ | 0.1160 |  |  |  | — |  |  | $ | — |
$ | 0.1170 |  |  |  | 2,000,000 |  |  |  | 4.98 |  |  | $ | 0.1170 |  |  |  | — |  |  | $ | — |
$ | 0.1360 |  |  |  | 2,126,000 |  |  |  | 4.99 |  |  | $ | 0.1360 |  |  |  | 2,126,000 |  |  | $ | 0.1360 |
$ | 0.1799 |  |  |  | 2,099,367 |  |  |  | 3.92 |  |  | $ | 0.1799 |  |  |  | 2,099,367 |  |  | $ | 0.1799 |
$ | 0.1930 |  |  |  | 100,000 |  |  |  | 4.50 |  |  | $ | 0.1930 |  |  |  | — |  |  | $ | — |
$ | 0.2000 |  |  |  | 100,000 |  |  |  | 4.38 |  |  | $ | 0.2000 |  |  |  | — |  |  | $ | — |
|  |  |  |  | 189,984,972 |  |  |  | 3.69 |  |  | $ | 0.0755 |  |  |  | 128,582,972 |  |  | $ | 0.0652 |
Transactions involving stock options issued to employees are summarized as follows:
|  | Number of Shares |  | Weighted Average Exercise Price Per Share |  | Aggregate Intrinsic Value |
Outstanding at October 1, 2013 |  |  | 121,454,192 |  | $ | 0.0630 |  |  |  |
Granted |  |  | 68,530,780 |  |  | 0.0977 |  |  |  |
Exercised |  |  | — |  |  | — |  |  |  |
Expired |  |  | — |  |  | — |  |  |  |
Outstanding at December 31, 2013 |  |  | 189,984,972 |  | $ | 0.0755 |  |  |  |
Vested at December 31, 2013 |  |  | 128,582,972 |  |  |  |  | $ | 0.0574 |
Non-vested at December 31, 2013 |  |  | 61,402,000 |  |  |  |  | $ | 0.0257 |
Transactions involving stock options issued to employees are summarized as follows: On October 14, 2013, the Company granted an aggregate of 7,377,000 options to purchase the Company’s Common Stock at an exercise price of $0.0886 per share for five years to employees. 5,377,000 of these options vest at 25% each anniversary for the next four years and 2,000,000 of these options vest immediately. On October 17, 2013, the Company granted Dr. James A. Hayward, Chairman, CEO and President and Dr. Ming-Hwa Liang, Chief Technology Officer and Secretary of the Company options to purchase 50,000,000 and 3,000,000 shares of the Company’s Common Stock, respectively, at an exercise price of $0.0970 per share for five years with vesting at 25% each anniversary for the next four years. Also on October 17, 2013, the Company issued an aggregate of 3,777,780 options to non-employee board of director members under the 2005 Incentive Stock Plan at an exercise price of $0.0970 per share for five years with immediate vesting. On November 28, 2013, the Company issued 250,000 options to purchase the Company’s Common Stock at an exercise price of $0.1160 per share for five years to an employee with vesting at 25% each anniversary for the next four years. On December 2, 2013, the Company granted 2,000,000 options to purchase the Company’s Common Stock at an exercise price of $0.1170 per share for five years to an employee with vesting at 25% each anniversary for the next four years. On December 10, 2013, the Company issued an aggregate of 2,126,000 options to purchase the Company’s Common Stock at an exercise price of $0.1360 per share for five years to employees, with immediate vesting. The fair value of options granted during the three months ended December 31, 2013 was determined using the Black Scholes Option Pricing Model with the following weighted average assumptions: stock price $0.0979, exercise price $0.1212, dividend yield $-0-, volatility of 111.80% and risk free rate of 0.96%. The Company recorded $765,546 and $417,866 as stock compensation expense for the three month periods ended December 31, 2013 and 2012, respectively, for the vesting portion of all employee options outstanding. As of December 31, 2013, unrecorded compensation cost related to non-vested awards was $4,084,655, which is expected to be recognized through 2017.

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- 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 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: 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 3: 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=6406099&loc=d3e25284-112666 Reference 4: 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=6418621&loc=d3e17540-113929 Reference 5: 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 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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