Quarterly report pursuant to Section 13 or 15(d)

9. Stock Options

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9. Stock Options
9 Months Ended
Jun. 30, 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 nine months ended June 30, 2016:

 

        Number of Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Life     Intrinsic Value  
Outstanding at September 30, 2015       1,050,000     $    1.87       4.76     $ 225,750  
Granted                                
Exercised                                
Forfeited                                
Outstanding at June 30, 2016       1,050,000     $ 1.87       4.01     $ 162,500  
Exercisable at June 30, 2016       1,012,500     $ 1.85       3.94     $ 162,500  
                                     

The Company recognized compensation expense of $254,710 and $621,311 during the nine months ended June 30, 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 June 30, 2016, the Company had $5,089 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 June 30, 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       187,500       1.67  
37,500       2.08       37,500       2.08  
37,500       2.50             2.50  
450,000       2.53       450,000       2.53  
1,050,000               1,012,500          

 

The following table summarizes information about the Company’s non-vested shares as of June 30, 2016:

 

          Weighted-
Average
 
    Number of     Grant-Date  
Non-vested Shares   Shares     Fair Value  
Nonvested at September 30, 2015     375,000     $     1.44  
Granted              
Vested     (337,500 )        
Nonvested at June 30, 2016     37,500     $ 1.44