Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY (Tables)

v3.10.0.1
STOCKHOLDERS' EQUITY (Tables)
 3 Months Ended
Dec. 31, 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 three months ended December 31, 2018 and 2017 is as follows:

 

    Three months ended December 31,  
    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   $ —     $ —     $ —     $ —  
Product development     15,100       9,000       100       —  
Sales and marketing     10,300       —       100       —  
General and administrative     266,000       216,900       117,200       219,200  
Total   $ 291,400     $ 225,900     $ 117,400     $ 219,200  
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: 

 

    Three Months Ended December 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   $ 411,647       1.67     $ 963,200       8.82  
Restricted Stock     31,876       0.50       209,800       0.74  
Total   $ 443,523       1.57     $ 1,173,000       7.86  

* All unrestricted stock options are based on milestones so there is no weighted average recognition period.
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, 2018     803,937     $ 10.13       8.75     $ 7,500  
Granted     839,758       1.33               —  
Exercised     —       —               —  
Forfeited or expired     (21,250 )     1.52                  
Outstanding at December 31, 2018     1,622,445     $ 5.68       9.12     $ —  
Schedule of status of restricted shares outstanding

Following is a summary of the restricted stock activity for the three months ended December 31, 2018:

 

    Number of Shares     Weighted Average Grant Date Fair Value  
Outstanding at September 30, 2018     406,564     $ 4.09  
Granted     144,000       1.38  
Forfeited     —       —  
Outstanding at December 31, 2018     550,564     $ 3.38
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

December 31, 2018

  
    Low     High  
Annual dividend yield     — %     — %
Expected life (years)     3.0       5.0  
Risk-free interest rate     2.51 %     2.90 %
Expected volatility     183.86 %     200.47 %
Schedule of warrant activity

The warrant activity for the three months ended December 31, 2018, are described as follows: 

 

    Number of Shares     Weighted Average Exercise Price  
Outstanding at September 30, 2018     6,075,874     $ 4.53  
Expired/ Forfeited     (105 )     55.00  
Outstanding at December 31, 2018     6,075,769     $ 4.53  
Schedule of the status of warrant outstanding

Following is a summary of the status of warrants outstanding at December 31, 2018:

 

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  
$ 55.00       450       09/2018 – 03/2019     55.00  
  Total       6,075,769           $ 4.53  

 

  (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.