STOCKHOLDERS' EQUITY (Tables)
|
6 Months Ended |
Mar. 31, 2018 |
|---|
| 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, 2018 and 2017 is as follows:
| |
|
Six
Months Ended March 31 |
|
| |
|
2018 |
|
|
2017 |
|
| Stock-based compensation
expense by type of award: |
|
|
|
|
|
|
|
|
| Stock options |
|
$ |
303,100 |
|
|
$ |
562,000 |
|
| Restricted stock |
|
|
289,900 |
|
|
|
426,900 |
|
| Total stock-based compensation
expenses |
|
$ |
593,000 |
|
|
$ |
988,900 |
|
| |
|
|
|
|
|
|
|
|
| Stock-based compensation
expense by line item: |
|
|
|
|
|
|
|
|
| Research |
|
$ |
— |
|
|
$ |
8,700 |
|
| Product development |
|
|
100 |
|
|
|
190,400 |
|
| Sales and marketing |
|
|
100 |
|
|
|
46,900 |
|
| General and administrative |
|
|
592,800 |
|
|
|
742,900 |
|
| Total |
|
$ |
593,000 |
|
|
$ |
988,900 |
|
|
| 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 |
| |
2018 |
|
2017 |
| 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 |
$ |
682,900 |
|
0.53 |
|
$ |
466,200 |
|
6.91 |
| Restricted Stock |
$ |
139,100 |
|
0.48 |
|
$ |
438,300 |
|
.50 |
| Total |
$ |
822,000 |
|
0.52
|
|
$ |
904,500 |
|
3.84 |
|
| 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, 2017 |
|
|
554,083 |
|
|
$ |
16.14 |
|
|
|
8.29 |
|
|
$ |
11,340 |
|
| Granted |
|
|
75,000 |
|
|
|
3.82 |
|
|
|
— |
|
|
|
— |
|
| Exercised |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Forfeited or expired |
|
|
(75,024 |
) |
|
|
6.73 |
|
|
|
|
|
|
|
|
|
| Outstanding at March 31, 2018 |
|
|
554,059 |
|
|
$ |
15.75 |
|
|
|
8.17 |
|
|
$ |
— |
|
|
| 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:
| |
|
Three
Months Ended
March 31, 2018 |
|
|
Six
Months Ended
March 31, 2018 |
|
| |
|
Low |
|
|
High |
|
|
Low |
|
|
High |
|
| Annual dividend yield |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
| Expected
life (years) |
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
| Risk-free interest
rate |
|
|
2.25 |
% |
|
|
2.25 |
% |
|
|
1.99 |
% |
|
|
2.87 |
% |
| Expected volatility |
|
|
209.84 |
% |
|
|
209.84 |
% |
|
|
209.77 |
% |
|
|
210.39 |
% |
|
| Schedule of the status of warrants outstanding |
Following
is a summary of the status of warrants outstanding at March 31, 2018:
Exercise
Price |
|
Number
of Shares |
|
Expiration
Date |
|
Weighted
Average
Exercise Price |
|
| |
|
|
|
|
|
|
|
| $ |
2.34 |
|
1,050,000 |
(1 |
) |
03/2023 |
|
$ |
2.34 |
|
| 5.25 |
|
2,539,061 |
(2 |
) |
07/2022 |
|
5.25 |
|
| 5.25 |
|
1,675,000 |
(3 |
) |
07/2022 |
|
5.25 |
|
| 5.25 |
|
213,800 |
(4 |
) |
07/2022 |
|
5.25 |
|
| 6.04 |
|
134,000 |
(5 |
) |
07/2022 |
|
6.04 |
|
| 10.00 |
|
4,000 |
(6 |
) |
06/2021 |
|
10.00 |
|
| $ |
55.00 |
|
1,620 |
|
06/2018
– 03/2019 |
|
55.00 |
|
| Total |
|
5,617,481 |
|
|
|
$ |
4.74 |
|
| |
(1) |
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. For more detail on the private placement, please refer
to the “Private Placement of A Preferred Stock with Warrant” sections of Note 6. Stockholders’ Equity to
the Condensed Consolidated Financial Statements. |
| |
(2) |
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. |
| |
(3) |
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. |
| |
(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) |
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. |
| |
(6) |
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 status of restricted shares outstanding |
Following
is a summary of the restricted stock activity for the six months ended March 31, 2018:
| |
|
|
Number of
Shares |
|
|
Weighted
Average
Grant Date
Fair
Value
|
|
| Outstanding
at September 30, 2017 |
|
|
|
222,750 |
|
|
$ |
5.31 |
|
| Granted |
|
|
|
57,500 |
|
|
|
3.88 |
|
| Forfeited |
|
|
|
— |
|
|
|
— |
|
| Outstanding at March
31, 2018 |
|
|
|
280,250 |
|
|
$ |
5.02 |
|
|