Quarterly report pursuant to Section 13 or 15(d)

9. Stock Options

9. Stock Options

6 Months Ended

Mar. 31, 2015

From time to time, the Company grants stock options and restricted stock awards to officers, directors, employees and consultants. These awards are valued based on the grant date fair value of the instruments, net of estimated forfeitures. The value of each award is amortized on a straight-line basis over the requisite service period.

Stock Options

The following table summarizes stock option activity for the six months ended March 31, 2015:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Intrinsic Value
Outstanding at September 30, 2014		600,000	$	2.76			$	–
Granted		–
Exercised		–
Forfeited		–
Outstanding at March 31, 2015		600,000	$	2.76		4.26		375,625
Exercisable at March 31, 2015		337,500	$	2.04		3.84		375,625

The Company recognized compensation expense of $48,399 and $105,860 during the six months ended March 31, 2015, respectively, related to stock option awards granted to certain employees and executives based on the grant date fair value of the awards, net of estimated forfeitures.

At March 31, 2015, the Company had $51,685 of unrecognized compensation expense (net of estimated forfeitures) associated with stock option awards which the Company expects will be recognized through June 2017.

The following table summarizes information about the Company’s non-vested shares as of March 31, 2015:

				Weighted-Average
	Number of			Grant-Date
Non-vested Shares	Shares			Fair Value
Nonvested at September 30, 2014		450,000		$	0.73
Granted		–
Vested		(187,500	)
Nonvested at March 31, 2015		262,500		$	0.73

- 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.

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