SHARE-BASED COMPENSATION

3 Months Ended

Dec. 31, 2014

Share-Based Compensation [Abstract]

Share-Based Compensation

NOTE 9. SHARE-BASED COMPENSATION 

The Company provides its employees, officers, consultants and directors with stock options, restricted stock units and other stock rights for common stock of the Company on a discretionary basis. All option and restricted stock unit grants are subject to the terms and conditions determined by the Compensation and Stock Committee of the Board of Directors, and generally vest over a three-year period beginning three months from the date of grant and expire either seven or ten years from the date of grant depending on the plan. All awards are granted under our 2011 Plan and at December 31, 2014, 485,558 shares were available for future issuance under the 2011 Plan.

Generally, options and other stock rights are granted at exercise prices not less than the fair market value at the date of grant. All of the Company’s share-based awards are accounted for as equity instruments and there have been no liability awards granted. Share-based compensation expense for all share-based payment awards is measured based on the grant-date fair value of the award and recognized on a straight-line basis over the requisite period of the award.

Stock Option Plans

The Company estimates the fair value of each share-based award (except restricted stock units, which are discussed below) using the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options, a risk-free interest rate and dividend yield.

The following table is a summary of combined activity for all of the Company’s stock option plans:  

		Weighted-		Weighted-
		Average		Average	Aggregate
		Exercise		Remaining	Intrinsic
	Number of Options	Price Per Share		Life (In years)	Value (In thousands)
Outstanding, September 30, 2014	320,500	$	5.97	3.74	$	1,572
Granted	-		-	-		-
Canceled/Forfeited	-		-	-		-
Exercised	-		-	-		-
Outstanding, December 31, 2014	320,500	$	5.97	3.49	$	1,263
Exercisable, December 31, 2014	282,994	$	5.05	3.25	$	1,263
Unvested awards expected to vest, December 31, 2014	33,755	$	12.92	5.31	$	-

Restricted Stock Units

The following table presents nonvested RSU information for the three months ended December 31, 2014:   

	Number of
	RSUs
	Outstanding
Nonvested, September 30, 2014		740,011
Granted		180,000
Canceled/Forfeited		(22,334)
Vested		(13,498)
Nonvested, December 31, 2014		884,179