Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY (Tables)

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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