Quarterly report pursuant to Section 13 or 15(d)

9. Stock Options

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9. Stock Options
6 Months Ended
Mar. 31, 2016
Share-based Compensation [Abstract]  
Stock Options

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, 2016:

 

       Weighted   Weighted     
       Average   Average     
   Number of   Exercise   Remaining     
   Shares   Price   Contractual Life   Intrinsic Value 
Outstanding at September 30, 2015   1,050,000   $1.87    4.76   $225,750 
Granted                   
Exercised                   
Forfeited                   
Outstanding at March 31, 2016   1,050,000   $1.87    4.26   $125,375 
Exercisable at March 31, 2016   675,000   $1.73    3.76   $125,375 

 

The Company recognized compensation expense of $174,855 and $48,399 during the six months ended March 31, 2016 and 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, 2016, the Company had $84,913 of unrecognized compensation expense (net of estimated forfeitures) associated with stock option awards which the Company expects will be recognized through June 2017.

 

The exercise price for options outstanding and exercisable at March 31, 2016 is as follows:

 

Outstanding   Exercisable 
Number of   Exercise   Number of   Exercise 
Options   Price   Options   Price 
 187,500   $0.83    187,500   $0.83 
 150,000    1.25    150,000    1.25 
 187,500    1.67    37,500    1.67 
 37,500    2.08        2.08 
 37,500    2.50        2.50 
 450,000    2.53    300,000    2.53 
 1,050,000         675,000      

 

The following table summarizes information about the Company’s non-vested shares as of March 31, 2016:

 

       Weighted-
Average
 
   Number of   Grant-Date 
Non-vested Shares  Shares   Fair Value 
Nonvested at September 30, 2015   375,000   $1.44 
Granted         
Vested         
Nonvested at March 31, 2016   375,000   $1.44