Annual report pursuant to Section 13 and 15(d)

STOCKHOLDERS' EQUITY (Tables)

v3.10.0.1
STOCKHOLDERS' EQUITY (Tables)
12 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Schedule of stock-based compensation expense

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:

 

  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 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 status of restricted shares outstanding at September 30, 2018:

 

            Weighted        
            Average        
            Grant        
      Number of     Date Fair        
        Shares     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:

 

    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 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 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. 

 

  (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.

 

  (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.

 

  (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 213,800 common stock warrants to underwriters as part of the overallotment attributed to the July 2017 underwritten public offering.

 

  (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.