Quarterly report pursuant to Section 13 or 15(d)

9. Stock Options

9. Stock Options

3 Months Ended

Dec. 31, 2015

From time to time, the Company grants stock options and restricted stock awards to officers, directors, employees and consultants. These awards are valued based on the grant date fair value of the instruments, net of estimated forfeitures. The value of each award is amortized on a straight-line basis over the requisite service period.

Stock Options

The following table summarizes stock option activity for the three months ended December 31, 2015:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Intrinsic Value
Outstanding at September 30, 2015		1,050,000	$	1.87		4.76	$	225,750
Granted		–
Exercised		–
Forfeited		–
Outstanding at December 31, 2015		1,050,000	$	1.87		4.50	$	149,000
Exercisable at December 31, 2015		675,000	$	1.73		4.01	$	149,000

The Company recognized compensation expense of $91,227 and $29,390 during the three months ended December 31, 2015 and 2014, respectively, related to stock option awards granted to certain employees and executives based on the grant date fair value of the awards, net of estimated forfeitures.

At December 31, 2015, the Company had $168,571 of unrecognized compensation expense (net of estimated forfeitures) associated with stock option awards which the Company expects will be recognized through June 2017.

The exercise price for options outstanding and exercisable at December 31, 2015 is as follows:

Outstanding			Exercisable
Number of		Exercise		Number of		Exercise
Options		Price		Options		Price
187,500	$	0.83		187,500	$	0.83
150,000		1.25		150,000		1.25
187,500		1.67		37,500		1.67
37,500		2.08		–		2.08
37,500		2.50		–		2.50
450,000		2.53		300,000		2.53
1,050,000				675,000

The following table summarizes information about the Company’s non-vested shares as of December 31, 2015:

Non-vested Shares		Number of Shares		Weighted-Average Grant-Date Fair Value
	Nonvested at September 30, 2015		375,000	$	1.44
	Granted		–
	Vested		–
	Nonvested at December 31, 2015		375,000	$	1.44