Quarterly report pursuant to Section 13 or 15(d)

Note 6 - Stock-based Compensation

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Note 6 - Stock-based Compensation
3 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

6. STOCK-BASED COMPENSATION

 

2013 Stock Incentive Plan

 

On June 18, 2013, the Company established the 2013 Stock Incentive Plan (the “2013 Plan”). Under the 2013 Plan, during the fiscal year ended September 30, 2022, a maximum number of 170,571 shares of the Company’s authorized and available common stock could be issued in the form of options, stock appreciation rights, sales or bonuses of restricted stock, restricted stock units or dividend equivalent rights, and an award may consist of one such security or benefit, or two or more of them in any combination or alternative. The 2013 Plan provides that on the first business day of each fiscal year commencing with fiscal year 2014, the number of shares of our common stock reserved for issuance under the 2013 Plan for all awards except for incentive stock option awards will be subject to increase by an amount equal to the lesser of (A) 15,000 Shares, (B) four (4) percent of the number of shares outstanding on the last day of the immediately preceding fiscal year of the Company, or (C) such lesser number of shares as determined by the Company’s Board of Directors (the “Board”). The exercise price of each option shall be the fair value as determined in good faith by the Board at the time each option is granted. On October 1, 2022, the aggregate number of authorized shares under the Plan was further increased by 15,000 shares to a total of 185,571 shares.

 

The exercise price of each option is equal to the closing price of a share of the Company’s Common Stock on the date of grant.

 

Share-Based Awards

 

During the three months ended December 31, 2022, the Company awarded 20,875 options to employees and directors and 3,625 options to consultants to purchase shares of Common Stock under the 2013 Plan.

 

Share-based compensation expense for awards granted during the three months ended December 31, 2022 was based on the grant date fair value estimated using the Black-Scholes Model.

 

 

 

Common Stock Options

 

Stock compensation activity under the 2013 Plan for the three months ended December 31, 2022 follows:

 

   

Option

Shares Outstanding

   

Weighted

Average

Exercise Price

   

Weighted

Average

Remaining

Contractual Term (years)

   

Aggregate

Intrinsic Value

 

Outstanding at September 30, 2022

    98,626     $ 52.00       1.46     $ 16,900  

Awarded

    24,500     $ 6.00                  

Forfeited/Cancelled

    (18,801

)

  $ 70.00                  

Outstanding at December 31, 2022

    104,325     $ 40.00       1.26       3,900  

Vested at December 31, 2022

    68,202     $ 54.00       1.50       975  

Vested and expected to vest at December 31, 2022

    104,325     $ 40.00       1.26       3,900  

 

As of December 31, 2022, 50,667 shares are available for future grants under the 2013 Plan.

 

Share-based compensation expense recorded in the Company’s Consolidated Statements of Operations for the three months ended December 31, 2022 and 2021 resulting from options awarded to the Company’s employees, directors and consultants was approximately $102,000 and $142,000, respectively. Of this amount, during the three months ended December 31, 2022 and 2021, $14,000 and $53,000, respectively, were recorded as research and development expense, and $88,000 and $89,000, respectively were recorded as general and administrative expense in the Company’s Consolidated Statements of Operations.

 

During the three months ended December 31, 2022 and 2021, no options awarded were exercised.

 

As of December 31, 2022, there is approximately $295,000 of unrecognized compensation expense related to unvested stock-based compensation arrangements granted under the 2013 Plan. That cost is expected to be recognized over a weighted average period of 3.02 years.

 

Restricted Stock

 

Restricted stock activity under the 2013 Plan for the three months ended December 31, 2022 and 2021, in shares, follows:

 

   

Three months Ended

 
   

December 31, 2022

   

December 31, 2021

 

Non Vested at September 30, 2022 and 2021

    250       2,250  

Vested

    -       (375

)

Non Vested at December 31, 2022 and 2021

    250       1,875  

 

The weighted grant date fair value average of the restricted stock for the three months ended December 31, 2022 and 2021 follows:

 

   

Three months Ended

 
   

December 31, 2022

   

December 31, 2021

 

Non Vested at September 30, 2022 and 2021

  $ 18.00     $ 20.00  

Vested

    -       (20.00

)

Non Vested at December 31, 2022 and 2021

  $ 18.00     $ 20.00  

 

For the three months ended December 31, 2022 and 2021, compensation expense recorded for the restricted stock awards was approximately $2,000 and $10,000, respectively.