5. SHARE-BASED COMPENSATION

3 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

SHARE-BASED COMPENSATION

NOTE 5            SHARE-BASED COMPENSATION

Stock Options

The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the following assumptions. The expected term represents the period over which the stock option awards are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The expected volatility used is based on the historical price of the Company’s stock over the most recent period commensurate with the expected term of the award. The risk-free interest rate used is based on the implied yield of U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s expected term. The Company historically has not paid any dividends on its common stock and had no intention to do so on the date the share-based awards were granted. The estimated annual forfeiture rate is based on management’s expectations and will reduce expense ratably over the vesting period. The forfeiture rate will be adjusted periodically based on the extent to which actual option forfeitures differ, or are expected to differ, from the previous estimate, when it is material.

There were no options granted during the three months ended December 31, 2019 and 2018.

The following table summarizes stock option activity during the three months ended December 31, 2019:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Life In Years		Intrinsic Value
Outstanding, September 30, 2019		812,879		$	1.69
Granted		–			–
Exercised		–			–
Forfeited		(1,501	)		1.67
Expired		–			–
Outstanding, December 31, 2019		811,378		$	1.69		3.6	$	19,900
Exercisable, December 31, 2019		622,007		$	1.73		3.5	$	19,900

The Company recognized compensation expense of approximately $33,000 and $10,000 during the three months ended December 31, 2019 and 2018, respectively, for stock option awards in its condensed consolidated statements of operations.

As of December 31, 2018, there was approximately $25,000 of total unrecognized compensation cost related to non-vested stock option awards that is expected to be recognized over a weighted average period of 0.5 years.

The following table provides additional information regarding stock option awards that were outstanding and exercisable at December 31, 2019:

Options Outstanding				Options Exercisable
Exercise Price	Weighted Average Exercise Price		Outstanding Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Life In Years	Exercisable Number of Options
$0.64 to $1.23	$	0.80	77,500	$	0.80	4.8	77,500
$1.44 to $1.67		1.51	605,378		1.49	4.1	416,007
$2.20 to $2.85		2.48	66,000		2.48	0.4	66,000
$3.73 to $3.79		3.74	62,500		3.74	1.1	62,500
			811,378			3.5	622,007

Restricted Stock Awards

The Company recognized compensation expense of approximately $0 and $2,000 during the three months ended December 31, 2019 and 2018, respectively, for restricted stock awards in its condensed consolidated statements of operations. As of December 31, 2019, there was no unrecognized compensation cost related to non-vested restricted stock awards.