Annual report pursuant to Section 13 and 15(d)

Warrants

v3.19.3.a.u2
Warrants
12 Months Ended
Sep. 30, 2019
Warrants And Rights Note Disclosure [Abstract]  
Warrants

Note 9:       Warrants

The Company issued several notes in prior periods and converted them resulting in the issuance of Series B Convertible Preferred Stock warrants. The following table summarizes information about the Company’s warrants at September 30, 2019 and September 30, 2018, respectively:

 

 

 

Number of

units -

Series B

Convertible

preferred

warrants

 

 

Weighted

Average

Exercise

Price`

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

 

Intrinsic

Value

 

Outstanding  and Exercisable at September 30, 2018

 

 

118,029

 

 

$

20.80

 

 

 

1.35

 

 

$

 

Outstanding and Exercisable at September 30, 2019

 

 

118,029

 

 

$

20.80

 

 

 

0.53

 

 

$

 

As discussed in Note 8. Stockholders’ Equity, the warrants may be exchanged for shares of common stock at a ratio of one share of Series B Preferred Stock into five common shares. The following table provides information assuming the warrants are exercised and exchanged for common shares:

 

 

 

Number of

Common

Shares to be

Issued

 

 

Weighted

Average

Exercise

Price Per

Common

Share

 

 

Weighted

Average

Remaining

Contractual

Term

(in years)

 

 

Intrinsic

Value

 

Outstanding  and Exercisable at September 30, 2018

 

 

590,147

 

 

$

4.16

 

 

 

1.35

 

 

$

2,856

 

Outstanding and Exercisable at September 30, 2019

 

 

590,147

 

 

$

4.16

 

 

 

0.53

 

 

$

2,602

 

Warrants for 10,914, 12,383, 54,396 and 17,857 shares of Series B Convertible Preferred Stock were set to expire on September 10, 2017, December 11, 2017, March 27, 2018 and March 28, 2018, respectively. On January 16, 2018 and December 3, 2019, the Company and ICG amended the original terms of the warrants so that the warrants automatically extend for additional two-year periods if the warrants are not exercised by their expiration date, as the expiration date may be extended from time to time. Warrants outstanding and exercisable as of September 30, 2019 and September 30, 2018 reflect the time extended warrants in addition to 22,479 warrants for shares of Series B Convertible Preferred Stock with an original expiration date of December 3, 2019. The Company recognized compensation expense of $128 and $270 during the years ended September 30, 2019 and 2018, respectively, related to warrant awards granted to certain employees and officers based on the grant date fair value of the awards, net of estimated forfeitures. No forfeitures are estimated.

The exercise price for the Series B convertible preferred stock warrants outstanding and exercisable at September 30, 2019 is as follows:

 

Series B Convertible Preferred

 

Outstanding

 

 

Exercisable

 

Number of Warrants

 

 

Exercise Price

 

 

Number of Warrants

 

 

Exercise Price

 

 

54,396

 

 

$

16.60

 

 

 

54,396

 

 

$

16.60

 

 

17,857

 

 

 

16.80

 

 

 

17,857

 

 

 

16.80

 

 

12,383

 

 

 

24.30

 

 

 

12,383

 

 

 

24.30

 

 

33,393

 

 

 

28.50

 

 

 

33,393

 

 

 

28.50

 

 

118,029

 

 

 

 

 

 

 

118,029