Quarterly report pursuant to Section 13 or 15(d)

COMMON STOCK OPTIONS

v2.4.1.9
COMMON STOCK OPTIONS
 6 Months Ended
Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
COMMON STOCK OPTIONS

NOTE 7 – COMMON STOCK OPTIONS

 

During the three and six month periods ended March 31, 2015, the Company recognized $1,907,757 and $2,269,785 of expense related to options granted, respectively. Unamortized option expense as of March 31, 2015 for all options outstanding amounted to $5,786,087.

 

Below is a table summarizing the options issued and outstanding as of March 31, 2015:

 

    Number
Outstanding		   Weighted-Average
Exercise Price
  Outstanding at September 30, 2014       2,048,335     $ 5.43  
  Granted       1,106,000       9.04  
  Exercised       —         —    
  Forfeited       (40,000 )     8.39  
  Outstanding at March 31, 2015       3,114,335     $ 6.70  

  

As of March 31, 2015, the outstanding options have an intrinsic value of $817,000.

 

The fair value of options granted are estimated at the date of grant using the Black-Scholes option-pricing model and the following assumptions: stock price at valuation, $2.54; expected term of 3 to 3.25 years, exercise price of $1.50-$10.14, a risk free interest rate of 1.02-1.10 percent, a dividend yield of 0 percent and volatility of 121-128 percent. The average vesting period of shares issued during the six month period ending March 31, 2015 is 2.5 years with 25% of the options vesting at the date of the grant.