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STOCK OPTIONS AND WARRANTS | 12 Months Ended
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Sep. 30, 2018
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] |
STOCK OPTIONS AND WARRANTS | NOTE I– STOCK OPTIONS AND WARRANTS Warrants Transactions involving warrants (see Note H) are summarized as follows:
|  | Number of Shares |  |  | Weighted Average Exercise Price Per Share |
Balance at October 1, 2017 |  |  | 9,540,455 |  |  | $ | 3.60 |
Granted |  |  | 2,735,000 |  |  |  | 2.00 |
Exercised |  |  | (-) |  |  |  | (- ) |
Cancelled or expired |  |  | (66,928 | ) |  |  | (2.88 | )
Balance, September 30, 2018 |  |  | 12,208,527 |  |  | $ | 3.24 |
Stock Options In 2005, the Board of Directors and the holders of a majority of the outstanding shares of common stock approved the Incentive Plan. In 2007, 2008, 2012 and 2015, 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 8,333,333 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. The Incentive Plan’s expiration date is 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, 2018, a total of 275,752 shares have been issued and options to purchase 6,704,115 shares have been granted under the Incentive Plan. Transactions involving stock options issued 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, 2017 |  |  | 5,333,227 |  |  | $ | 3.71 |  |  |  |  |  |  |  |  |
Granted |  |  | 2,188,141 |  |  |  | 2.00 |  |  |  |  |  |  |  |  |
Exercised |  |  | - |  |  |  | - |  |  |  |  |  |  |  |  |
Cancelled or expired |  |  | (1,338,154 | ) |  |  | 3.58 |  |  |  |  |  |  |  |  |
Outstanding at September 30, 2018 |  |  | 6,183,214 |  |  | $ | 3.13 |  |  |  |  |  |  |  |  |
Vested at September 30, 2018 |  |  | 5,392,896 |  |  |  | 3.31 |  |  | $ | 273,951 |  |  |  | 5.81 |
Non-vested at September 30, 2018 |  |  | 790,318 |  |  |  |  |  |  | $ | 10,542 |  |  |  | 8.92 |
For the fiscal year ended September 30, 2018, the Company issued an aggregate of 2,188,141 (including award modifications of 666,667) options to employees, consultants, members of the strategic advisory board and non-employee board of director members. Included in these grants was 500,000 options granted to executives. For the fiscal year ended September 30, 2017, the Company issued 1,099,844 (including award modifications of 119,182 options) options to employees, consultants, members of the strategic advisory board and non-employee board of director members. Included in these grants was 280,000 options granted to executives and 5,000 performance based options issued to a consultant. These performance based options vest when a certain performance condition is met by the consultant. The fair value of options granted during the fiscal years ended September 30, 2018 and 2017 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:
|  | 2018 |  |  | 2017 |
Stock price |  | $ | 1.31 |  |  | $ | 2.11 |
Exercise price |  | $ | 2.00 |  |  | $ | 2.31 |
Expected term |  |  | 4.42 |  |  |  | 5.38 |
Dividend yield |  |  | - |  |  |  | - |
Volatility |  |  | 86 | % |  |  | 111 | %
Risk free rate |  |  | 2.70 | % |  |  | 2.0 | %
The Company recorded $1,356,351 and $3,257,305 as stock compensation expense within selling, general and administrative for fiscal years ended September 30, 2018 and 2017, respectively. Included in this amount is $145,053 and $89,951 for the fiscal years ended September 30, 2018 and 2017, respectively for employee stock option modifications. These modifications extended the term of the option for an employee in fiscal 2018 and extended the terms of the options for a former employee in fiscal 2017. As of September 30, 2018, unrecorded compensation cost related to non-vested awards was $619,060, which is expected to be recognized over a weighted average period of approximately 0.81 years. The weighted average grant date fair value per share for options granted during the fiscal years ended September 30, 2018 and 2017 was $0.75 and $1.58, respectively.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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