STOCKHOLDERS' EQUITY (Tables)
|
6 Months Ended |
12 Months Ended |
Mar. 31, 2019 |
Sep. 30, 2018 |
Equity [Abstract] |
|
|
Schedule of stock-based compensation expense |
Stock-based compensation expense included in the accompanying unaudited condensed consolidated statements
of operations for the six months ended March 31, 2019 and 2018 is as follows:
|
|
Six months ended March
31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
Stock-based compensation
expense - stock options
|
|
|
Stock-based compensation expense
- restricted shares
|
|
|
Stock-based compensation expense
- stock options
|
|
|
Stock-based compensation expense
restricted shares
|
|
Research |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Product development |
|
|
29,200 |
|
|
|
17,800 |
|
|
|
100 |
|
|
|
— |
|
Sales and marketing |
|
|
12,000 |
|
|
|
— |
|
|
|
100 |
|
|
|
— |
|
General and administrative |
|
|
404,200 |
|
|
|
312,100 |
|
|
|
302,900 |
|
|
|
289,900 |
|
Total |
|
$ |
445,400 |
|
|
$ |
329,900 |
|
|
$ |
303,100 |
|
|
$ |
289,900 |
|
|
Stock-based
compensation expense is generally recognized over the employees' or service provider's requisite service period, generally
the vesting period of the award. Stock-based compensation expense included in the accompanying statements of operations for the
years ended September 30, 2018 and 2017 is as follows:
|
|
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
|
Stock-based compensation Expense
non- Restricted Shares |
|
|
Stock-based compensation Expense
Restricted Shares |
|
|
Stock-based compensation Expense
non- Restricted Shares |
|
|
Stock-based compensation Expense Restricted
Shares |
|
Research |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,900 |
|
|
$ |
— |
|
Product development |
|
|
20,000 |
|
|
|
16,400 |
|
|
|
360,600 |
|
|
|
— |
|
Sales and marketing |
|
|
3,400 |
|
|
|
— |
|
|
|
175,300 |
|
|
|
— |
|
General and administrative |
|
|
1,034,800 |
|
|
|
513,700 |
|
|
|
647,200 |
|
|
|
892,000 |
|
Total |
|
$ |
1,058,200 |
|
|
$ |
530,100 |
|
|
$ |
1,194,000 |
|
|
$ |
892,000 |
|
|
Schedule of unrecognized stock-based compensation expense |
The following table sets forth the Company’s
unrecognized stock-based compensation expense, net of estimated forfeitures, by type of award and the weighted-average period
over which that expense is expected to be recognized:
|
|
March
31, |
|
|
|
2019 |
|
|
2018 |
|
Type of Award: |
|
Unrecognized
Expense, net of estimated forfeitures |
|
|
Weighted average
Recognition Period (in years) |
|
|
Unrecognized
Expense, net of estimated forfeitures |
|
|
Weighted average
Recognition Period (in years) |
|
Stock Options |
|
$ |
329,600 |
|
|
|
1.40 |
|
|
$ |
682,900 |
|
|
|
0.53 |
|
Restricted Stock |
|
|
5,300 |
|
|
|
0.05 |
|
|
|
139,100 |
|
|
|
0.48 |
|
Total |
|
$ |
334,900 |
|
|
|
1.38 |
|
|
$ |
822,000 |
|
|
|
0.52 |
|
|
Total
unrecognized compensation expense was $185,537 as of September 30, 2018. The following table sets forth the Company's unrecognized
stock-based compensation expense, net of estimated forfeitures, by type of award and the weighted-average period over which that
expense is expected to be recognized:
|
|
September 30 |
|
|
|
2018 |
|
|
2017 |
|
Type of Award: |
|
Unrecognized Expense, |
|
|
Weighted average Recognition
Period (in years) |
|
|
Unrecognized Expense |
|
|
Weighted average Recognition
Period (in years) |
|
Stock Options |
|
$ |
126,509 |
|
|
|
0.96 |
|
|
$ |
860,915 |
|
|
|
3.54 |
|
Restricted Stock |
|
$ |
59,028 |
|
|
|
0.55 |
|
|
$ |
205,858 |
|
|
|
1.00 |
|
Total |
|
$ |
185,537 |
|
|
|
0.83 |
|
|
$ |
1,066,773 |
|
|
|
3.05 |
|
|
Schedule of stock option activity |
A summary of all stock option activity
is as follows:
|
|
Number of Shares |
|
|
Weighted Average
Exercise Price |
|
|
Weighted- Average
Remaining Contractual Term (in years) |
|
|
Intrinsic Value |
|
Outstanding at September 30, 2018 |
|
|
803,937 |
|
|
$ |
10.13 |
|
|
|
8.75 |
|
|
$ |
7,500 |
|
Granted |
|
|
864,758 |
|
|
|
1.34 |
|
|
|
|
|
|
|
— |
|
Exercised |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
Forfeited or expired |
|
|
(38,760 |
) |
|
|
2.28 |
|
|
|
|
|
|
|
|
|
Outstanding at March 31, 2019 |
|
|
1,629,935 |
|
|
$ |
5.65 |
|
|
|
8.89 |
|
|
$ |
52,600 |
|
|
A
summary of stock option activity is as follows:
|
|
Number of Shares |
|
|
Weighted Average Exercise Price |
|
|
Weighted- Average Remaining Contractual Term (in years) |
|
|
Intrinsic Value |
|
Outstanding at September 30, 2016 |
|
|
223,120 |
|
|
$ |
50.98 |
|
|
|
6.63 |
|
|
$ |
819,137 |
|
Granted |
|
|
334,000 |
|
|
|
4.85 |
|
|
|
— |
|
|
|
— |
|
Exercised |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Forfeited |
|
|
(3,037 |
) |
|
|
1,335.06 |
|
|
|
— |
|
|
|
— |
|
Outstanding at September 30, 2017 |
|
|
554,083 |
|
|
$ |
16.14 |
|
|
|
6.63 |
|
|
$ |
7,425 |
|
Granted |
|
|
468,000 |
|
|
|
2.01 |
|
|
|
— |
|
|
|
— |
|
Exercised |
|
|
(35,000 |
) |
|
|
1.55 |
|
|
|
— |
|
|
|
— |
|
Forfeited or expired |
|
|
(183,146 |
) |
|
|
8.19 |
|
|
|
— |
|
|
|
— |
|
Outstanding at September 30, 2018 |
|
|
803,937 |
|
|
$ |
10.13 |
|
|
|
8.75 |
|
|
$ |
7,500 |
|
|
Schedule of options outstanding |
|
Following
is a summary of the status of options outstanding at September 30, 2018:
Exercise Price ($) |
|
|
Number of Shares |
|
|
Expiration Date |
|
Weighted Average Exercise Price ($) |
|
2012 Omnibus Incentive Compensation Plan |
|
|
|
|
|
|
|
|
|
$ |
1.55 |
|
|
|
250,000 |
|
|
4/2028 |
|
|
1.55 |
|
|
1.99 |
|
|
|
50,000 |
|
|
4/2028 |
|
|
1.99 |
|
|
2.35 |
|
|
|
10,000 |
|
|
6/2028 |
|
|
2.35 |
|
|
2.98 |
|
|
|
10,000 |
|
|
5/2028 |
|
|
2.98 |
|
|
3.60 |
|
|
|
54,000 |
|
|
09/2027 |
|
|
3.60 |
|
|
3.74 |
|
|
|
5,000 |
|
|
12/2027 |
|
|
3.74 |
|
|
3.88 |
|
|
|
20,000 |
|
|
11/2027 |
|
|
3.88 |
|
|
3.96 |
|
|
|
35,000 |
|
|
11/2027 |
|
|
3.96 |
|
|
4.10 |
|
|
|
5,000 |
|
|
08/2027 |
|
|
4.10 |
|
|
4.16 |
|
|
|
50,000 |
|
|
08/2027 |
|
|
4.16 |
|
|
4.33 |
|
|
|
75,000 |
|
|
07/2027 |
|
|
4.33 |
|
|
5.10 |
|
|
|
7,750 |
|
|
04/2026 |
|
|
5.10 |
|
|
5.90 |
|
|
|
18,000 |
|
|
03/2027 |
|
|
5.90 |
|
|
6.00 |
|
|
|
174,000 |
|
|
09/2026 |
|
|
6.00 |
|
|
9.44 |
|
|
|
22,307 |
|
|
12/2022 – 01/2023 |
|
|
9.44 |
|
|
11.00 |
|
|
|
6,250 |
|
|
08/2025 |
|
|
11.00 |
|
|
50.00 |
|
|
|
9,518 |
|
|
03/2023 – 01/2025 |
|
|
50.00 |
|
|
52.00 |
|
|
|
625 |
|
|
07/2024 |
|
|
52.00 |
|
$ |
600.00 |
|
|
|
42 |
|
|
03/2022 |
|
|
600.00 |
|
|
Sub-Total |
|
|
|
802,492 |
|
|
Weighted Average |
|
$ |
4.39 |
|
2006 Stock Incentive Plan |
|
|
|
|
|
|
|
|
|
$ |
2,400.00 |
|
|
|
144 |
|
|
03/2019 – 07/2020 |
|
$ |
2,400.00 |
|
|
2,820.00 |
|
|
|
51 |
|
|
03/2021 |
|
|
2,820.00 |
|
$ |
3,300.00 |
|
|
|
1,250 |
|
|
03/2020 |
|
$ |
3,300.00 |
|
|
Sub-Total |
|
|
|
1,445 |
|
|
Weighted Average |
|
$ |
3,193.37 |
|
|
Total |
|
|
|
803,937 |
|
|
Weighted Average |
|
$ |
10.13 |
|
|
Schedule of status of restricted shares outstanding |
Following is a summary of the restricted
stock activity for the six months ended March 31, 2019:
|
|
Number of Shares |
|
|
Weighted Average
Grant Date Fair Value |
|
Outstanding at September 30, 2018 |
|
|
406,564 |
|
|
$ |
4.09 |
|
Granted |
|
|
174,000 |
|
|
|
1.35 |
|
Forfeited |
|
|
— |
|
|
|
— |
|
Outstanding at March 31, 2019 |
|
|
580,564 |
|
|
$ |
3.27 |
|
|
Following
is a summary of the status of restricted shares outstanding at September 30, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares |
|
|
Weighted Average Grant Date Fair Value |
|
|
Amount |
|
Outstanding at September 30, 2016 |
|
|
143,750 |
|
|
$ |
6.13 |
|
|
$ |
881,250 |
|
Granted |
|
|
79,000 |
|
|
|
3.83 |
|
|
|
302,650 |
|
Forfeited |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Outstanding at September 30, 2017 |
|
|
222,750 |
|
|
$ |
5.31 |
|
|
$ |
1,183,900 |
|
Granted |
|
|
183,814 |
|
|
|
2.62 |
|
|
|
480,862 |
|
Forfeited |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Outstanding at September 30, 2018 |
|
|
406,564 |
|
|
$ |
4.09 |
|
|
$ |
1,664,762 |
|
|
Schedule of black-scholes option-pricing model assumption |
The range of Black-Scholes option-pricing
model assumption inputs for all the valuation dates are in the table below:
|
|
Six
Months Ended
March
31, 2019
|
|
|
|
Low |
|
|
High |
|
Annual dividend yield |
|
|
— |
% |
|
|
— |
% |
Expected life (years) |
|
|
3.0 |
|
|
|
5.0 |
|
Risk-free interest rate |
|
|
2.23 |
% |
|
|
2.90 |
% |
Expected volatility |
|
|
172.89 |
% |
|
|
200.47 |
% |
|
The
range of Black-Scholes option-pricing model assumption inputs for all the valuation dates are in the table below:
|
|
September 30, 2017 through |
|
|
|
to September 30, 2018 |
|
|
|
Low |
|
|
High |
|
Annual dividend yield |
|
|
— |
% |
|
|
— |
% |
Expected life (years) |
|
|
5 |
|
|
|
5 |
|
Risk-free interest rate |
|
|
1.14 |
% |
|
|
2.94 |
% |
Expected volatility |
|
|
194.36 |
% |
|
|
210.39 |
% |
|
|
September 30, 2016 through |
|
|
|
to September 30, 2017 |
|
|
|
Low |
|
|
High |
|
Annual dividend yield |
|
|
— |
% |
|
|
— |
% |
Expected life (years) |
|
|
5 |
|
|
|
5 |
|
Risk-free interest rate |
|
|
1.14 |
% |
|
|
1.93 |
% |
Expected volatility |
|
|
196.77 |
% |
|
|
234.54 |
% |
|
Schedule of warrant activity |
The warrant activity for the six months
ended March 31, 2019, are described as follows:
|
|
Number of Shares |
|
|
Weighted Average
Exercise Price |
|
Outstanding at September 30, 2018 |
|
|
6,075,874 |
|
|
$ |
4.53 |
|
Expired/ Forfeited |
|
|
(555 |
) |
|
|
55.00 |
|
Outstanding at March 31, 2019 |
|
|
6,075,319 |
|
|
$ |
4.52 |
|
|
The
warrant activity for the years ending September 30, 2018 and 2017, is described as follows:
|
|
Number of Shares |
|
|
Weighted Average Exercise Price |
|
Outstanding at September 30, 2016 |
|
|
7,160 |
|
|
$ |
50.41 |
|
Granted |
|
|
4,561,861 |
|
|
|
5.27 |
|
Exercised |
|
|
— |
|
|
|
— |
|
Expired |
|
|
(1,349 |
) |
|
|
185.61 |
|
Forfeited |
|
|
— |
|
|
|
— |
|
Outstanding at September 30, 2017 |
|
|
4,567,672 |
|
|
$ |
5.30 |
|
Granted |
|
|
1,509,458 |
|
|
|
2.24 |
|
Exercised |
|
|
— |
|
|
|
— |
|
Expired/ Forfeited |
|
|
(1,256 |
) |
|
|
48.07 |
|
Outstanding at September 30, 2018 |
|
|
6,075,874 |
|
|
$ |
4.53 |
|
|
Schedule of the status of warrants outstanding |
Following is a summary of the status of warrants outstanding
at March 31, 2019:
Exercise Price |
|
|
Number of Shares |
|
|
Expiration Date |
|
Weighted Average Exercise
Price |
|
$ |
2.00 |
|
|
|
459,458 |
(1) |
|
09/2023 |
|
$ |
2.00 |
|
|
2.34 |
|
|
|
1,050,000 |
(2) |
|
03/2023 |
|
|
2.34 |
|
|
5.25 |
|
|
|
2,539,061 |
(3) |
|
07/2022 |
|
|
5.25 |
|
|
5.25 |
|
|
|
1,675,000 |
(4) |
|
07/2022 |
|
|
5.25 |
|
|
5.25 |
|
|
|
213,800 |
(5) |
|
07/2022 |
|
|
5.25 |
|
|
6.04 |
|
|
|
134,000 |
(6) |
|
07/2022 |
|
|
6.04 |
|
|
10.00 |
|
|
|
4,000 |
|
|
06/2021 |
|
|
10.00 |
|
|
Total |
|
|
|
6,075,319 |
|
|
|
|
$ |
4.52 |
|
(1) |
On September 21, 2018, the Company entered into definitive
agreements with George C. Carpenter IV, President and former Chief Executive Officer, Robin L. Smith, Chairman, as well as
John Pappajohn, and Peter Unanue, each a director of the Company, and entities affiliated with Michal Votruba, a member of
the Board of Directors of MYnd Analytics and Director of Life Sciences for the European-based RSJ-Gradus fund, relating to
a private placement of an aggregate of 459,458 units for $1.85 per unit, with each unit consisting of one share of Common
Stock and one Common Stock Purchase Warrant to purchase one share of Common Stock for $2.00 per share. The closing price per
share of the Common Stock on the Nasdaq Stock Market on September 20, 2018 was $1.72 per share. |
|
(2) |
On
March 29, 2018, the Company sold an aggregate of 1,050,000 units for $2.00 per Unit each
consisting of one share of newly-designated Series A Preferred Stock, and one warrant
in a private placement to three affiliates of the Company, for gross proceeds of $2.1
million. The private placement closed on March 29, 2018. The closing price per share
of the Common Stock on the Nasdaq Stock Market on March 29, 2018 was $1.19 per share. |
|
(3) |
On
July 13, 2017, the Company declared a special dividend of warrants to purchase shares
of the Company’s common stock to record holders of Common Stock as of such date.
Warrants to purchase 2,539,061 shares of Common Stock were distributed pro rata to all
holders of common stock on the record date. These warrants are exercisable (in accordance
with their terms) to purchase one share of common stock, at an exercise price of $5.25
per share. The warrants will become exercisable commencing not less than 12 months following
their July 27, 2017 distribution date and will expire five years from the date of issuance. |
|
(4) |
On
July 19, 2017, the Company issued 1,675,000 shares of Common Stock and accompanying Warrants
to purchase up to 1,675,000 shares of Common Stock in connection with an underwritten
public offering. |
|
(5) |
On
August 23, 2017, the Company issued warrants to purchase 213,800 shares of common stock
to underwriters as part of the exercise of the overallotment option attributed to the
July 2017 underwritten public offering. |
|
(6) |
As
part of the underwritten public offering on July 19, 2017, the Company issued warrants
to purchase 134,000 shares of common stock to the underwriters as part of the services
performed by them in connection with the underwritten public offering. |
|
Following
is a summary of the status of warrants outstanding at September 30, 2018:
Exercise Price |
|
|
Number of Shares |
|
|
Expiration Date |
|
Weighted Average Exercise Price |
|
|
2.00 |
|
|
|
459,458 |
(1) |
|
9/21/2028 |
|
|
2.00 |
|
|
2.34 |
|
|
|
1,050,000 |
(2) |
|
03/2023 |
|
|
2.34 |
|
|
5.25 |
|
|
|
2,539,061 |
(3) |
|
07/2022 |
|
|
5.25 |
|
|
5.25 |
|
|
|
1,675,000 |
(4) |
|
07/2022 |
|
|
5.25 |
|
|
5.25 |
|
|
|
213,800 |
(5) |
|
07/2022 |
|
|
5.25 |
|
|
6.04 |
|
|
|
134,000 |
(6) |
|
07/2022 |
|
|
6.04 |
|
|
10.00 |
|
|
|
4,000 |
|
|
06/2021 |
|
|
10.00 |
|
|
55.00 |
|
|
|
555 |
|
|
06/2018 – 03/2019 |
|
|
55.00 |
|
|
Total |
|
|
|
6,075,874 |
|
|
|
|
$ |
4.53 |
|
|
(1) |
On September 21,
2018, the Company entered into definitive agreements with George C. Carpenter IV, President
and Chief Executive Officer, Robin L. Smith, Chairman, as well as John Pappajohn, and
Peter Unanue, each a director of the Company, and entities affiliated with Michal Votruba,
a member of the board of directors of MYnd Analytics and Director of Life Sciences for
the European-based RSJ-Gradus fund, relating to a private placement of an aggregate of
459,458 units for $1.85 per unit, with each unit consisting of one share of Common Stock
and one Common Stock Purchase Warrant to purchase one share of Common Stock for $2.00
per share. The closing price per share of the Common Stock on the NASDAQ Stock Market
on September 20, 2018 was $1.72 per share. |
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(2) |
On
March 29, 2018, the Company sold an aggregate of 1,050,000 units for $2.00 per Unit each
consisting of one share of newly-designated Series A Preferred Stock, and one warrant
for $2.34 per share in a private placement to three affiliates of the Company, for gross
proceeds of $2.1 million. The private placement closed on March 29, 2018. The closing
price per share of the Common Stock on the NASDAQ Stock Market on March 29, 2018 was
$1.19 per share. |
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(3) |
On July 13, 2017, the Company declared a special
dividend of warrants to purchase shares of the Company's common stock to record holders of Common Stock as of such date.
Warrants to purchase 2,539,061 shares of Common Stock were distributed pro rata to all holders of common stock on the record date.
These warrants will be exercisable (in accordance with their terms) to purchase one share of common stock, at an exercise price
of $5.25 per share. The warrants will become exercisable commencing not less than 12 months following their July 27, 2017 distribution
date and will expire five years thereafter. |
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(4) |
On July 19, 2017, the Company issued 1,675,000 shares
of Common Stock and accompanying Warrants to purchase up to 1,675,000 shares of Common Stock in connection with an underwritten
public offering. |
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(5) |
On August 23, 2017, the Company issued 213,800 common
stock warrants to underwriters as part of the overallotment attributed to the July 2017 underwritten public offering. |
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(6) |
As part of the underwritten public offering on July 19,
2017, the Company issued 134,000 common stock warrants to the underwriters as part of the services performed by them in connection
with the underwritten public offering. |
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