Quarterly report pursuant to Section 13 or 15(d)

11. Stock-based Compensation

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11. Stock-based Compensation
3 Months Ended
Dec. 31, 2016
Share-based Compensation [Abstract]  
Stock-based Compensation

From time to time, the Company grants stock options and restricted stock awards to directors, officers and employees. These awards are valued at the grant date by determining the 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, 2016:

 

          Weighted     Weighted        
          Average     Average        
    Number of     Exercise     Remaining        
    Shares     Price     Contractual Life     Intrinsic Value  
Outstanding at September 30, 2016     175,000     $ 11.24       3.75     $ 346,500  
Granted                              
Exercised                              
Forfeited                              
Outstanding at December 31, 2016     175,000     $ 11.24       3.50     $ 2,236,875  
Exercisable at December 31, 2016     168,750     $ 10.70       3.55     $ 2,236,875  

 

The Company recognized compensation expense of $1,436 and $91,227 during the three months ended December 31, 2016 and 2015, respectively, related to stock option awards granted to certain employees and officers based on the grant date fair value of the awards, net of estimated forfeitures.

 

At December 31, 2016 the Company had $2,217 of unrecognized compensation expense (net of estimated forfeitures) associated with stock option awards which the company expects will be recognized through June of 2017.

 

The exercise price for stock options outstanding and exercisable at December 31, 2016 is as follows:

 

Outstanding     Exercisable  
Number of     Exercise     Number of     Exercise  
Options     Price     Options     Price  
  31,250     $ 5.00       31,250     $ 5.00  
  25,000       7.50       25,000       7.50  
  31,250       10.00       31,250       10.00  
  6,250       12.50       6,250       12.50  
  6,250       15.00             15.00  
  75,000       15.18       75,000       15.18  
  175,000               168,750          

  

The following table summarizes information about the Company’s non-vested shares as of December 31, 2016:

 

          Weighted  
          Average  
    Number of     Grant-Date  
Non-vested Shares   Shares     Fair Value  
Non-vested at September 30, 2016     6,250     $ 14.22  
Granted              
Vested              
Non-vested at December 31, 2016     6,250     $ 14.22  

 

No options were granted during 2016 and 2015, where the exercise price was less than the common stock price at the date of grant or where the exercise price was greater than the common stock price at the date of grant.

 

The assumptions used in calculating the fair value of stock options granted use the Black-Scholes option pricing model for options granted in 2015 were as follows:

 

Risk-free interest rate 1.01%
Expected life of the options 2.5 to 3.5 years
Expected volatility 140%
Expected dividend yield 0%