Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY (Tables)

v3.8.0.1
STOCKHOLDERS' EQUITY (Tables)
3 Months Ended
Dec. 31, 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 unaudited condensed consolidated statements of operations for the three months ended December 31, 2017 and 2016 is as follows:  

 

    Three months ended December 31  
    2017     2016  
Stock-based compensation expense by type of award:            
Stock options   $ 117,400     $ 287,600  
Restricted stock     219,200       213,400  
Total stock-based compensation expenses   $ 336,600     $ 501,000  
                 
Stock-based compensation expense by line item:                
Research   $     $ 6,600  
Product development     100       97,400  
Sales and marketing     100       22,500  
General and administrative     336,400       374,500  
Total   $ 336,600     $ 501,000  
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:

 

    December 31
    2017   2016
    Unrecognized Expense, net of estimated forfeitures   Weighted average Recognition Period (in years)   Unrecognized Expense, net of estimated forfeitures   Weighted average Recognition Period (in years)
Type of Award:                                
Stock Options   $ 963,200       8.82     $ 474,300       9.01  
Restricted Stock   $ 209,800       0.74     $       0  
Total   $ 1,173,000       7.86     $ 474,300       9.01  
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     70,000       3.85              
Exercised                        
Forfeited or expired     (45,024 )     8.69                  
Outstanding at December 31, 2017     579,059     $ 15.24       8.82     $
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, 2017
    Low     High  
Annual dividend yield     %     %
Expected life (years)     5       5  
Risk-free interest rate     1.99 %     2.87 %
Expected volatility     209.77 %     210.39 %

Schedule of the status of warrants outstanding

Following is a summary of the status of warrants outstanding at December 31, 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) 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.

 

  (4) 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.

 

  (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 status of restricted shares outstanding

Following is a summary of the restricted stock activity for the three months ended December 31, 2017: 

 

    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 December 31, 2017     280,250     $ 5.02