Restricted Stock Awarded Outside the 2013 Stock Incentive Plan

9 Months Ended

Jun. 30, 2018

Restricted Stock Awarded Outside the 2013 Stock Incentive Plan

On May 3, 2016, the Company awarded 2,000,000 shares of Restricted Stock to members of the Board of Directors and management in a private placement in reliance upon an exemption from registration afforded by Section 4(a)(2) of the Securities Act. The shares subject to this grant are outside the 2013 Plan and 100% shall fully vest on the second anniversary of the date of grant. On May 1, 2018, the vesting date for 1,767,000 shares was amended to November 2018. In addition, in the event of a Change of Control (as such term is defined in the 2013 Plan), 100% of the grants will immediately vest. During the nine months ended June 30, 2018, 233,000 shares of restricted stock awarded outside the 2013 Plan vested.

Restricted Stock activity for the nine months ended June 30, 2018 and 2017 is as follows:

	2018			2017
Non Vested at beginning of year		2,000,000			2,000,000
Awarded		-			-
Vested		(233,000	)		-
Forfeited		-			-
Non Vested at June 30, 2018 and 2017		1,767,000			2,000,000

The weighted average restricted stock award date fair value information for the nine months ended June 30, 2018 and 2017 follows:

	2018		2017
Non Vested at beginning of year	$	0.39	$	0.39
Awarded		-		-
Vested		0.39		-
Forfeited		-		-
Non Vested at June 30, 2018 and 2017	$	0.39	$	0.39

For the three months ended June 30, 2018 and 2017, compensation expense recorded for the restricted stock awards was approximately $34,000 and $97,000, respectively. For the nine months ended June 30, 2018 and 2017, compensation expense recorded for the restricted stock awards was approximately $229,000 and $293,000, respectively.