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STOCK INCENTIVE PLANS
 6 Months Ended
Mar. 31, 2025
STOCK INCENTIVE PLANS  
STOCK INCENTIVE PLANS

8. STOCK INCENTIVE PLANS

 

On August 12, 2021, the Company established the Know Labs, Inc. 2021 Equity Incentive Plan (the “2021 Plan”) which was adopted by the Company’s shareholders on October 15, 2021. On October 25, 2024, shareholders approved a Plan Amendment which increased the maximum number of shares of our common stock that may be delivered to participants under the 2021 Plan to 1,000,000 shares.

 

Six Months Ended March 31, 2025

 

During the six months ended March 31, 2025, the Company issued a stock option grant to one employee for 7,500 shares at $9.60 per share. The stock option grant expires in five years. The stock option grant vests quarterly over four years.

 

During the six months ended March 31, 2025, stock option grants for 81,702 shares at an average exercise price of $41.73 per share were forfeited.

 

Stock option activity for the six months ended March 31, 2025 was as follows:

 

 

 

Weighted Average

 

 

 

 Options

 

 

 Exercise Price

 

Outstanding as of September 30, 2024

 

 

687,668

 

 

$32.54

 

Granted

 

 

7,500

 

 

 

9.60

 

Forfeitures

 

 

(81,702)

 

 

(41.73)

Outstanding as of March 31, 2025

 

 

613,466

 

 

$31.04

 

 

 

The following table summarizes information about stock options outstanding and exercisable as of March 31, 2025:

 

 

 

 

 

 

 

Weighted

 

 

Weighted

 

 

 

 

Weighted

 

 

 

 

 

 

Average

 

 

Average

 

 

 

 

Average

 

Range of

 

 

Number

 

 

Remaining Life

 

 

Exercise Price

 

 

Number

 

 

Exercise Price

 

Exercise Prices

 

 

Outstanding

 

 

In Years

 

 

Outstanding

 

 

Exercisable

 

 

Exercisable

 

$9.60-20.40

 

 

 

391,724

 

 

 

3.86

 

 

$11.58

 

 

 

178,616

 

 

$13.04

 

$24.80

 

 

 

1,250

 

 

 

4.39

 

 

 

24.80

 

 

 

234

 

 

 

24.80

 

$35.20-50.00

 

 

 

11,500

 

 

 

3.65

 

 

 

44.91

 

 

 

8,313

 

 

 

44.40

 

$52.40-61.20

 

 

 

158,492

 

 

 

2.33

 

 

 

59.93

 

 

 

47,496

 

 

 

58.62

 

$81.60-146.80

 

 

 

50,500

 

 

 

2.05

 

 

 

88.33

 

 

 

32,813

 

 

 

86.94

 

 

 

 

 

 

613,466

 

 

 

3.31

 

 

$31.04

 

 

 

267,472

 

 

$31.18

 

 

The significant weighted average assumptions relating to the valuation of the Company’s stock option grants for the six months ended March 31, 2025 were as follows:

 

 

Assumptions

 

 

 

Dividend yield

 

 

0%

Stock price

 

$8.80

 

Exercise price

 

$9.60

 

Expected term

 

 4 years

 

Expected volatility

 

 

107%

Risk free interest rate

 

 

4.08%

 

The stock option grants of 613,466 shares had no aggregate intrinsic value as of March 31, 2025.

 

There are 613,466 (including unearned stock option grants totaling 108,409 shares related to performance milestones) options to purchase common stock at an average exercise price of $31.04 per share outstanding as of March 31, 2025 under the 2021 Plan. The Company recorded $593,681 and $616,317 of compensation expense, net of related tax effects, relative to stock options for the three months ended March 31, 2025 and 2024, respectively, in accordance with ASC 718. The Company recorded $1,144,384 and $1,315,563 of compensation expense, net of related tax effects, relative to stock options for the six months ended March 31, 2025 and 2024, respectively, in accordance with ASC 718. As of March 31, 2025, there is $3,211,767 of total unrecognized costs related to employee granted stock options that are not vested. These costs are expected to be recognized over a period of approximately 3.31 years.