Stockholders' Equity

12 Months Ended

Sep. 30, 2016

Stockholders Equity Note [Abstract]

Stockholders Equity Note Disclosure [Text Block]

Note 10 – 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 3,646,924 and 4,006,663 shares of common stock are available for future purchases under the plan at September 30, 2016 and 2015, 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 0.0% because historically the Company has not paid dividends on common stock.

 

The Company’s Xcede joint venture adopted an Equity Incentive Plan in 2013 which provides for, among other incentives, the granting to officers, directors, employees and consultants options to purchase shares in Xcede’s common stock. The options granted generally vest over a 3 year period. The fair value of the stock options granted is estimated at the date of grant using the Black-Scholes option pricing model using assumptions generally consistent with those used for Company stock options. Because Xcede is not publicly traded, the expected volatility is estimated with reference to the average historical volatility of a group of publicly traded companies that are believed to have similar characteristics to Xcede. As of December 1, 2016, 458,347 options remained in this plan.

Stock compensation expense for the years ended September 30, 2016 and 2015 is presented below:

	2016		2015
Stock Grants	$	322,000	$	323,000
Restricted Stock Grants		45,000		28,000
Option Grants		42,000		17,000
Employee Stock Purchase Plan		3,000		2,000
Subsidiary Stock Grants		210,000		-
Subsidiary Option Grants		76,000		89,000
Total	$	698,000	$	459,000

At September 30, 2016 there was approximately $152,000 in unrecognized stock compensation cost for Dynasil, which is expected to be recognized over a weighted average period of fourteen months. At September 30, 2016, the Company’s Xcede joint venture had $148,000 of unrecognized stock compensation expense associated with stock options expected to be recognized over a weighted average period of seventeen months.

 

Restricted Stock Grants

A summary of restricted stock activity for the year ended September 30, 2016 and 2015 is presented below:

Restricted Stock Activity for the Year ended September 30, 2016	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at September 30, 2015		27,000	$	1.04
Granted		100,000	$	1.73
Vested		(27,000)	$	1.04
Cancelled		-		-
Nonvested and expected to vest at September 30, 2016		100,000	$	1.73

Restricted Stock Activity for the Year ended September 30, 2015	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at September 30, 2014		54,000	$	1.04
Granted		-	$	-
Vested		(27,000)	$	1.04
Cancelled		-	$	-
Nonvested and expected to vest at September 30, 2015		27,000	$	1.04

Stock Option Grants

A summary of stock option activity for the years ended September 30, 2016 and 2015 is presented below:

	Options Outstanding		Weighted Average Exercise Price per Share ($)		Weighted Average Remaining Contractual Term (in Years)
Balance at September 30, 2014		430,532		3.33		0.31
Outstanding and exercisable at September 30, 2014		430,532		3.33		0.31
Granted		36,232		1.82
Exercised		-		-
Cancelled		(408,552)		3.99
Balance at September 30, 2015		58,212		2.28		1.96
Outstanding and exercisable at September 30, 2015		58,212		2.28		1.96
Granted		64,935		2.33		2.34
Exercised		-		-
Cancelled		-		-
Balance at September 30, 2016		123,147		2.30		1.69
Outstanding and exercisable at September 30, 2016		123,147		2.30		1.69

Stock options outstanding at September 30, 2016 are described as follows:

Outstanding Stock Options at September 30, 2016
Range of Exercise Prices		Options Outstanding		Weighted Average Contractual Life (years)		Weighted Average Exercise Price		Options Exercisable		Weighted Average Exercise Price
$	1.82 - 1.99		36,232		1.34	$	1.82		36,232	$	1.82
	2.00 - 2.99		64,935		2.34		2.33		64,935		2.33
	3.00 - 3.03		21,980		0.34		3.03		21,980		3.03
$	1.82 - 3.03		123,147		1.69	$	2.30		123,147	$	2.30

During the years ended September 30, 2016 and 2015, 64,935 and 36,232 stock options were granted and vested, respectively, and no stock options were exercised.

Subsidiary Stock Option Grants

A summary of Xcede stock option activity for the years ended September 30, 2016 and 2015 is presented below: 

	Options Outstanding		Weighted Average Exercise Price per Share ($)		Weighted Average Remaining Contractual Term (in Years)
Balance at September 30, 2014		506,629		1.00		8.21
Outstanding and exercisable at September 30, 2014		17,500		1.00		9.24
Granted		326,129		1.00
Exercised		-		-
Cancelled		(52,500)		1.00
Balance at September 30, 2015		780,258		1.00		8.85
Outstanding and exercisable at September 30, 2015		180,293		1.00		8.50
Granted		148,419		1.00
Exercised		-		-
Cancelled		(315,024)		1.00
Balance at September 30, 2016		613,653		1.00		8.35
Outstanding and exercisable at September 30, 2016		320,586		1.00		8.01

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 131,203 and 144,945 shares have been issued as of September 30, 2016 and 2015, 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, 2016 and 2015, 13,742 shares and 9,698 shares of common stock were issued under the Plan for aggregate purchase prices of $15,676 and $12,762, respectively.