Annual report pursuant to Section 13 and 15(d)

STOCKHOLDERS' EQUITY (Tables)

v3.8.0.1
STOCKHOLDERS' EQUITY (Tables)
 12 Months Ended
Sep. 30, 2017
Schedule of stock-based compensation expense

  Stock-based compensation expenses are 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, 2017 and 2016 is as follows:    

 

    September 30  
    2017     2016  
      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       —     $ 41,600     $ —  
Product development     360,600       —       47,900       —  
Sales and marketing     175,300       —       30,200       —  
General and administrative     647,200       892,000       554,950       83,750  
Total   $ 1,194,000     $ 892,000     $ 674,650     $ 83,750  
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:

 

    September 30  
    2017     2016  
Type of Award:   Unrecognized Expense,     Weighted average Recognition Period (in years)     Unrecognized Expense,     Weighted average Recognition Period (in years)  
Stock Options   $ 860,915       3.54     $ 104,400       6.63  
Restricted Stock   $ 205,858       1.00     $ 1,123,365       1.00  
Total   $ 1,066,773       3.05     $ 1,227,765       1.48  
Schedule of stock option activity

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, 2015     71,183     $ 150.00       7.48     $ 819,137  
Granted     152,250       5.95                  
Exercised     —       —                  
Forfeited     (313 )     3.60                  
Outstanding at September 30, 2016     223,120     $ 50.98       6.63     $ 7,425  
Granted     334,000       4.85                  
Exercised     —       —                  
Forfeited or expired     (3,037 )     1,335.06                  
Outstanding at September 30, 2017     554,083     $ 16.14       3.54     $ 11,340  
Schedule of the status of options outstanding

Following is a summary of the status of options outstanding at September 30, 2017:

 

Exercise
Price ($)		     Number
of Shares		     Expiration
Date		     Weighted Average
Exercise Price ($)		  
2012 Omnibus Incentive Compensation Plan                          
$ 3.60       54,000       09/2027     $ 3.60  
  3.81       10,000       07/2027       3.81  
  4.10       5,000       08/2027       4.10  
  4.15       5,000       07/2027       4.15  
  4.16       50,000       08/2027       4.16  
  4.33       75,000       07/2027       4.33  
  5.10       8,250       04/2026       5.10  
  5.90       18,000       03/2027       5.90  
  6.00       256,000       09/2026       6.00  
  7.25       5,000       02/2027       7.25  
  9.44       43,978       12/2022 – 01/2023       9.44  
  11.00       8,750       08/2025       11.00  
  50.00       11,227       03/2023 – 01/2025       50.00  
  52.00       2,125       07/2024       52.00  
$ 600.00       216       03/2022       600.00  
  Sub-Total       552,546       Weighted Average     $ 6.95  
2006 Stock Incentive Plan                          
$ 2,400.00       144       03/2019 – 07/2020     $ 2,400.00  
  2,820.00       51       03/2021       2,820.00  
  3,060.00       7       09/2018       3,060.00  
  3,300.00       1,250       03/2020       3,300.00  
  4,800.00       24       12/2017       4,800.00  
$ 5,760.00       61       04/2018       5,760.00  
  Sub-Total       1,537       Weighted Average     $ 3,319.71  
  Total       554,083       Weighted Average     $ 16.14  
Schedule of Black-Scholes option-pricing model

The range of Black-Scholes option-pricing model assumption inputs for all the valuation dates are in the table below:

 

    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 %

 

    September 30, 2015 through
to September 30, 2016		  
    Low     High  
Annual dividend yield     — %     — %
Expected life (years)     2.5       5  
Risk-free interest rate     0.56 %     1.81 %
Expected volatility     191.05 %     273.10 %
Schedule of Warrants to Purchase Common Stock

The warrant activity for the year ending September 30, 2017 and 2016, is described as follows: 

 

      Number of
Shares		     Weighted
Average
Exercise
Price		  
Outstanding at September 30, 2015       3,912     $ 106.00  
Granted       604,000       10.00  
Exercised       —       —  
Expired       (752 )     200.00  
Forfeited       (600,000 )     10.00  
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  
Schedule of the status of warrants outstanding

Following is a summary of the status of warrants outstanding at September 30, 2017:

 

Exercise
Price		     Number
of Shares		         Expiration
Date		     Weighted Average
Exercise Price		  
  5.25       2,539,061   (1 )     07/2022       5.25  
  5.25       1,675,000   (2 )     07/2022       5.25  
$ 5.25       213,800   (3 )     07/2022     $ 5.25  
  6.04       134,000   (4 )     07/2022       6.04  
  9.44       191           03/2018       9.44  
  10.00       4,000   (5 )     06/2021       10.00  
  55.00       1,620           06/2018 – 03/2019       55.00  
  Total       4,567,672                 $ 5.30  

 

  (1) 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.

 

  (2) 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. 

 

  (3) 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.

 

  (4) 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.

 

  (5) On June 10, 2016, we issued two warrants, pursuant to a Finder’s Fee Agreement with Maxim Group LLC, to purchase in aggregate 4,000 shares of Common Stock following the introduction of an accredited investor who entered into a Second Amended Note and Warrant Purchase Agreement in the principal amount of $200,000. Each warrant is exercisable, in whole or in part, during the period beginning on the date of its issuance, and ending on the earlier of (i) December 31, 2020 and (ii) the date that is forty-five (45) days following the date on which the daily closing price of shares of the Company’s Common Stock quoted on the OTCQB Venture Marketplace (or other bulletin board or exchange on which the Company’s Common Stock is traded or listed) exceeds $50.00 for at least ten (10) consecutive trading days. In connection therewith, the Company will promptly notify the Note Warrant holders in the event that the daily closing price of the Company’s shares of Common Stock exceeds $50.00 for at least ten (10) consecutive trading days. Pursuant to the Finder’s Fee Agreement, Maxim was also paid $20,000 cash for their efforts.
Restricted Stock [Member]  
Schedule of stock option activity

Following is a summary of the status of restricted shares outstanding at September 30, 2017:

 

      Number of
Shares		     Weighted
Average
Grant
Date Fair
Value		     Amount  
September 30, 2015       3,750     $ 11.00     $ 41,250  
Granted       140,000       6.00       840,000  
Forfeited       —       —       —  
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