14. Stock Option Plan

3 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock Option Plan

14. STOCK OPTION PLAN

Effective February 27, 2015, the Company established the 2015 Stock Option Plan (the “Plan”). The Board of Directors of the Company has the authority and discretion to grant stock options. The maximum number of shares of stock that may be issued pursuant to the exercise of options under the Plan is 9,000,000. Eligible individuals include any employee of the Company or any director, consultant, or other person providing services to the Company. The expiration date and exercise price are as established by the Board of Directors of the Company. No option may be issued under the Plan after February 27, 2018.

Effective November 22, 2016, the Company established the 2016 Stock Option Plan (the “2016 Plan”). The Board of Directors of the Company has the authority and discretion to grant stock options and stock appreciation rights (SARs). The maximum number of shares of stock that may be issued pursuant to the exercise of options under the 2016 Plan is 20,000,000. Eligible individuals include any employee of the Company or any director, consultant, or other person providing services to the Company. The expiration date and exercise price are as established by the Board of Directors of the Company. No option may be issued under the Plan after ten years from the date of adoption of the 2016 Plan.

Stock option and stock appreciation rights activity is summarized as follows:

	Shares Under Option				Value of Shares Under Option			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life
Outstanding - September 30, 2019		2,788,476				550,455		$	0.29	87 months
Granted		5,600,000				1,361,200		$	0.23	114 months
Exercised		(116,375	)			(13,850	)	$	0.09	93 months
Canceled or expired		(1,299,405	)	*		(1,845,870	)	$	0.27
Outstanding - September 30, 2020		6,972,696				51,935		4	0.17	106 months
Granted		0				0			0
Exercised		0				0			0
Canceled or expired		0				0			0
Outstanding - December 31, 2020		6,972,696				618,413		$	0.17	106 months
Exercisable - December 31, 2020		1,363,944						$	0.31	72 months

* 500,000 SARs grants reflected as expired prior to September 30, 2020 actually expired in the three months ended December 31, 2020.

Unamortized share-based compensation expense as of December 31, 2020 amounted to $424,496 which is expected to be recognized over the next 4.6685 years. 

Total compensation expense, included in salaries and wages, of previously unamortized stock compensation was $60,170 and $7,085 for the three months ended December 31, 2020 and 2019.

On November 27, 2019, the 2016 Plan was amended to allow grants of other equity related rights, including Stock Appreciation Rights. During the three months ended December 31, 2020, 0 and 0 options and SARs were granted, respectively. SARs are recorded as a liability because there is a cash settlement option.