XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.3.1.900

STOCK OPTIONS AND WARRANTS | 12 Months Ended
--- | ---
Sep. 30, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] |
STOCK OPTIONS AND WARRANTS | NOTE J – STOCK OPTIONS AND WARRANTS Warrants The following table summarizes the changes in warrants outstanding and the related prices for the shares of the Company’s 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 sales of the Company’s common stock. Transactions involving warrants (see Note I) are summarized as follows:
|  | Number of Shares |  |  | Weighted Average Exercise Price Per Share |
Balance at October 1, 2014 |  |  | 945,166 |  |  | $ | 9.59 |
Granted |  |  | 5,833,878 |  |  |  | 3.50 |
Exercised |  |  | (16,667 | ) |  |  | (2.40 | )
Cancelled or expired |  |  | (734,723 | ) |  |  | (11.09 | )
Balance, September 30, 2015 |  |  | 6,027,654 |  |  | $ | 3.54 |
Employee Stock Options In 2005, the Board of Directors and the holders of a majority of the outstanding shares of common stock approved the 2005 Incentive Stock Plan (the “Incentive 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 5,833,334 shares and the number of shares of common stock that can be covered by awards made to any participant in any calendar year to 833,334 shares. On January 21, 2015, the Board of Directors approved an amendment to the Incentive Plan, which was approved by shareholders on June 16, 2015. The amendment increases the number of shares of common stock that can be issued as stock awards and stock options thereunder to an aggregate of 8,333,333. The amendment also extends the Incentive Plan’s expiration date to January 25, 2025. The Incentive Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to our success with an award of options to purchase shares of common stock. As of September 30, 2015, a total of 251,752 shares have been issued and options to purchase 4,152,446 shares have been granted under the Incentive Plan. The following table summarizes the changes in options outstanding and the related prices for the shares of the Company’s common stock issued to employees of the Company under the Incentive Plan:
Exercise Prices |  |  | Number Outstanding |  |  | Weighted Average Remaining Contractual Life (Years) |  |  | Weighted Average Exercise Price |  |  | Number Exercisable |  |  | Exercisable Weighted Average Exercise Price |
$ | 2.59 |  |  |  | 41,667 |  |  |  | 4.50 |  |  | $ | 2.59 |  |  |  | 41,667 |  |  | $ | 2.59 |
$ | 2.66 |  |  |  | 4,584 |  |  |  | 4.58 |  |  | $ | 2.66 |  |  |  | - |  |  | $ | - |
$ | 2.68 |  |  |  | 3,334 |  |  |  | 4.52 |  |  | $ | 2.68 |  |  |  | - |  |  | $ | - |
$ | 2.69 |  |  |  | 83,334 |  |  |  | 4.14 |  |  | $ | 2.69 |  |  |  | 83,334 |  |  | $ | 2.69 |
$ | 2.85 |  |  |  | 1,667 |  |  |  | 4.31 |  |  | $ | 2.85 |  |  |  | - |  |  | $ | - |
$ | 2.86 |  |  |  | 784,008 |  |  |  | 8.25 |  |  | $ | 2.86 |  |  |  | 608,500 |  |  | $ | 2.86 |
$ | 3.45 |  |  |  | 30,000 |  |  |  | 9.38 |  |  | $ | 3.45 |  |  |  | - |  |  | $ | - |
$ | 3.48 |  |  |  | 2,500 |  |  |  | 9.95 |  |  | $ | 3.48 |  |  |  | - |  |  | $ | - |
$ | 3.51 |  |  |  | 666,667 |  |  |  | 2.79 |  |  | $ | 3.51 |  |  |  | 666,667 |  |  | $ | 3.51 |
$ | 3.60 |  |  |  | 333,334 |  |  |  | 4.75 |  |  | $ | 3.60 |  |  |  | 333,334 |  |  | $ | 3.60 |
$ | 3.90 |  |  |  | 10,581 |  |  |  | 1.18 |  |  | $ | 3.90 |  |  |  | 10,581 |  |  | $ | 3.90 |
$ | 4.08 |  |  |  | 79,500 |  |  |  | 1.81 |  |  | $ | 4.08 |  |  |  | 79,500 |  |  | $ | 4.08 |
$ | 4.20 |  |  |  | 47,501 |  |  |  | 1.37 |  |  | $ | 4.20 |  |  |  | 47,085 |  |  | $ | 4.20 |
$ | 5.31 |  |  |  | 120,484 |  |  |  | 2.28 |  |  | $ | 5.31 |  |  |  | 67,700 |  |  | $ | 5.31 |
$ | 5.40 |  |  |  | 16,668 |  |  |  | 0.92 |  |  | $ | 5.40 |  |  |  | 16,668 |  |  | $ | 5.40 |
$ | 5.82 |  |  |  | 946,300 |  |  |  | 3.05 |  |  | $ | 5.82 |  |  |  | 283,798 |  |  | $ | 5.82 |
$ | 6.00 |  |  |  | 8,334 |  |  |  | 3.97 |  |  | $ | 6.00 |  |  |  | 8,334 |  |  | $ | 6.00 |
$ | 6.60 |  |  |  | 123,338 |  |  |  | 3.16 |  |  | $ | 6.60 |  |  |  | 123,338 |  |  | $ | 6.60 |
$ | 6.89 |  |  |  | 4,167 |  |  |  | 3.58 |  |  | $ | 6.89 |  |  |  | 1,042 |  |  | $ | 6.89 |
$ | 6.96 |  |  |  | 4,167 |  |  |  | 3.16 |  |  | $ | 6.96 |  |  |  | 1,042 |  |  | $ | 6.96 |
$ | 7.02 |  |  |  | 33,334 |  |  |  | 3.18 |  |  | $ | 7.02 |  |  |  | 8,334 |  |  | $ | 7.02 |
$ | 8.16 |  |  |  | 35,111 |  |  |  | 3.48 |  |  | $ | 8.16 |  |  |  | 35,111 |  |  | $ | 8.16 |
$ | 9.60 |  |  |  | 41,667 |  |  |  | 3.35 |  |  | $ | 9.60 |  |  |  | 41,667 |  |  | $ | 9.60 |
$ | 10.79 |  |  |  | 34,991 |  |  |  | 2.56 |  |  | $ | 10.79 |  |  |  | 34,991 |  |  | $ | 10.79 |
$ | 12.00 |  |  |  | 1,667 |  |  |  | 2.51 |  |  | $ | 12.00 |  |  |  | 834 |  |  | $ | 12.00 |
|  |  |  |  | 3,458,905 |  |  |  | 4.41 |  |  | $ | 4.42 |  |  |  | 2,493,527 |  |  | $ | 4.13 |
Transactions involving stock options issued to employees are summarized as follows:
|  | Number of Shares |  |  | Weighted Average Exercise Price Per Share |  |  | Aggregate Intrinsic Value |  | Weighted Average Contractual Life (years) |
Outstanding at October 1, 2014 |  |  | 2,909,046 |  |  | $ | 4.74 |  |  |  |  |  |  |  |
Granted |  |  | 952,594 |  |  |  | 2.85 |  |  |  |  |  |  |  |
Exercised |  |  | (500 | ) |  |  | 2.86 |  |  |  |  |  |  |  |
Cancelled or expired |  |  | (402,235 | ) |  |  | 3.02 |  |  |  |  |  |  |  |
Outstanding at September 30, 2015 |  |  | 3,458,905 |  |  | $ | 4.42 |  |  |  |  |  |  |  |
Vested at September 30, 2015 |  |  | 2,493,527 |  |  |  | 4.13 |  |  | $ | 0.19 |  |  | 4.41 |
Non-vested at September 30, 2015 |  |  | 965,378 |  |  |  |  |  |  | $ | 0.12 |  |  | 4.35 |
The aggregate intrinsic value for options exercised during the fiscal years ended September 30, 2015 and 2014 was $308 and $1,294,420, respectively. For the fiscal year ended September 30, 2015, the Company issued 952,594 options to employees, consultants and non-employee board of director members. Included in these grants was 450,000 options granted to executives. For the fiscal year ended September 30, 2014, the Company issued 1,229,717 options to employees, consultants and non-employee board of director members. Included in these grants was 962,503 options granted to executives. The fair value of options granted during the fiscal years ended September 30, 2015 and 2014 was determined using the Black Scholes Option Pricing Model. For the purposes of the valuation model, the Company used the simplified method for determining the granted options expected lives. The simplified method is used since the Company does not have adequate historical data to utilize in calculating the expected term of options. The fair value for options granted was calculated using the following weighted average assumptions:
|  | 2015 |  |  | 2014 |
Stock price |  | $ | 2.85 |  |  | $ | 6.11 |
Exercise price |  | $ | 2.85 |  |  | $ | 6.12 |
Expected term |  |  | 5.12 |  |  |  | 3.62 |
Dividend yield |  |  | - |  |  |  | - |
Volatility |  |  | 133 | % |  |  | 112 | %
Risk free rate |  |  | 1.7 | % |  |  | 0. 97 | %
The Company recorded $4,022,283 and $2,033,341 (including stock option modifications) as stock compensation expense for fiscal years ended September 30, 2015 and 2014, respectively. As of September 30, 2015, unrecorded compensation cost related to non-vested awards was $2,398,284, which is expected to be recognized over a weighted average period of approximately 2.03 years. The weighted average grant date fair value per share for options granted during the fiscal years ended September 30, 2015 and 2014 was $2.49 and $4.24, respectively. On August 5, 2014 the Company modified the vesting term of 33,334 options for an employee. The Company recorded $25,887 of stock compensation expense for the fiscal year ended September 30, 2014 in connection with this modification as the incremental difference between the fair value of the stock options immediately before and after the modifications. On January 16, 2015 and February 15, 2015 the Company modified the vesting term and extended the term of options for two employees. The Company recorded approximately $132,000 of stock compensation expense for the fiscal year ended September 30, 2015 in connection with these modifications as the incremental difference between the fair value of the stock options immediately before and after the modifications. On June 30, 2015 the Company modified the term of options that were set to expire for two executive officers. The Company recorded approximately $542,000 of stock compensation expense for the fiscal year ended September 30, 2015 in connection with this modification as the incremental difference between the fair value of the stock options immediately before and after the modifications.

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=6418621&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=51659978&loc=d3e25284-112666 Reference 3: 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 4: 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 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
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