Stockholders' Equity

12 Months Ended

Sep. 30, 2014

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

Note 11 – Stockholders’ Equity

Stock Based Compensation

The Company adopted Stock Incentive Plans in 1996, 1999 and 2010 which provide for, among other incentives, the granting to officers, directors, employees and consultants options to purchase shares of the Company’s common stock. The Plans also allow eligible persons to be issued shares of the Company’s common stock either through the purchase of such shares or as a bonus for services rendered to the Company. Shares are generally issued at the fair market value on the date of issuance. The maximum number of shares of common stock which may be issued under the 2010 Stock Incentive Plan is 6,000,000, of which 3,862,843 and 3,868,124 shares of common stock are available for future purchases under the plan at September 30, 2014 and 2013, respectively. Options are generally exercisable at the fair market value or higher on the date of grant over a three to five year period currently expiring through 2017.

The fair value of the stock options granted is estimated at the date of grant using the Black-Scholes option pricing model. The expected volatility was determined with reference to the historical volatility of the Company's stock. The Company uses historical data to estimate option exercises and employee terminations within the valuation model. The expected term of options granted represents the period of time that the options granted are expected to be outstanding. The risk-free interest rate for periods within the contractual life of the option is based on the U.S. Treasury rate in effect at the time of grant. The dividend yield is expected to be 0.00% because historically the Company has not paid dividends on common stock.

A summary of stock option activity for the years ended September 30, 2014 and 2013 is presented below:

	Options Outstanding	Weighted Average Exercise Price per Share ($)	Weighted Average Remain Contractual Term (in Years)
Balance at September 30, 2012	794,483	3.34	1.75
Outstanding and exercisable at September 30, 2012	794,483	3.34	1.75
Granted	-	-
Exercised	-	-
Cancelled	(163,951)	3.39
Balance at September 30, 2013	630,532	3.33	1.06
Outstanding and exercisable at September 30, 2013	630,532	3.33	1.06
Granted	-	-
Exercised	-	-
Cancelled	(200,000)	2.00
Balance at September 30, 2014	430,532	3.33	0.31
Outstanding and exercisable at September 30, 2014	430,532	3.33	0.31

Stock options outstanding at September 30, 2014 are described as follows:

Outstanding Stock Options at September 30, 2014
Range of Exercise Prices		Options Outstanding	Weighted Average Contractual Life (years)	Weighted Average Exercise Price		Options Exercisable	Weighted Average Exercise Price
$	3.03 - 3.99	115,730	0.74	$	3.16	115,730	$	3.16
	4.00 - 4.99	275,000	0.28		4.00	275,000		4.00
	5.00 - 5.99	29,528	0.28		5.53	29,528		5.53
	6.00 - 6.65	10,274	0.42		6.65	10,274		6.65
$	3.03 - 6.65	430,532	0.31	$	3.33	430,532	$	3.33

During the years ended September 30, 2014 and 2013, no stock options were granted nor exercised. During the years ended September 30, 2014 and 2013, no stock options vested. The intrinsic value of the options outstanding and the exercisable options at September 30, 2014 and 2013 was $0 and $0, respectively, as the market price was below the exercise prices.

Stock compensation expense for the years ended September 30, 2014 and 2013 is presented below:

Stock Compensation Expense	2014		2013
Stock Grants	$	270,000	$	231,000
Restricted Stock Grants		195,000		174,000
Option Grants		-		10,000
Employee Stock Purchase Plan		2,000		3,000
Total	$	467,000	$	418,000

At September 30, 2014 there was approximately $22,000 in unrecognized stock compensation cost, which is expected to be recognized over a weighted average period of five months.

A summary of restricted stock activity for the year ended September 30, 2014 and 2013 is presented below:

Restricted Stock Activity for the Year ended September 30, 2014	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at September 30, 2013	423,168	$	0.74
Granted	6,000	$	1.36
Vested	(375,168)	$	0.71
Cancelled	-	$	-
Nonvested and expected to vest at September 30, 2014	54,000	$	1.04

Restricted Stock Activity for the Year ended September 30, 2013	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at September 30, 2012	127,834	$	1.92
Granted	404,000	$	0.67
Vested	(84,666)	$	1.38
Cancelled	(24,000)	$	3.59
Nonvested and expected to vest at September 30, 2013	423,168	$	0.74

Employee Stock Purchase Plan

On September 28, 2010, the Company adopted an Amended and Restated Employee Stock Purchase Plan. The existing plan was amended to extend the termination date to September 28, 2020. The Employee Stock Purchase Plan permits substantially all employees to purchase common stock at a purchase price of 85% of the fair market value of the shares. Under the Plan, a total of 450,000 shares have been reserved for issuance of which 154,643 and 284,858 shares have been issued as of September 30, 2014 and 2013, respectively.

On December 16, 2011, the Company amended the Amended and Restated Employee Stock Purchase Plan to change the maximum dollar amount of stock able to be purchased through the Plan by any employee per calendar year from $5,000 to $20,000 per calendar year. During the years ended September 30, 2014 and 2013, 10,499 shares and 28,622 shares of common stock were issued under the Plan for aggregate purchase prices of $13,345 and $20,335, respectively.