Plans

The Company maintains stock incentive plans that provide for the grant of incentive and non-qualified options, stock appreciation rights ("SARs") and common stock awards covering a total of 1,344,238 shares of common stock reserved for issuance to key employees, including officers and directors, as of September 30, 2015. In connection with the IQinVision business combination, the Company assumed a total of 379,834 stock options and 262,586 SARs along with related 2001 and 2011 Stock Incentive Plan provisions. All options and SARs are issued at fair market value at the grant date and are exercisable in varying installments according to the plans. SARs provide the holder the right to receive, upon exercise, the excess of the exercise date fair market value over the grant date fair market value of a share of the Company's common stock in the form of equivalent shares of common stock at market value, cash or a combination of both. The plans allow for the payment of option exercises through the surrender of previously owned mature shares based on the fair market value of such shares at the date of surrender. Such surrendering of mature shares by holders results in an increase to treasury stock based on the stock price on date of surrender. There were 167,581 options and SARs available for grant under these plans at September 30, 2015.

Changes in outstanding stock options for the two years ended September 30, 2015 are as follows:



	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at September 30, 2013	454,000			$4.32
Options assumed in IQinVision business combination	379,834			$2.40
Options granted	15,000			$2.62
Options exercised	—		—
Options forfeited	(85,000	)		$3.81
Outstanding at September 30, 2014	763,834			$4.31
Options granted	123,000			$1.49
Options exercised	(110,127	)		$0.44
Options forfeited	(236,939	)		$3.56
Outstanding at September 30, 2015	539,768			$3.36	5.5	$25,029
Exercisable at September 30, 2015	374,038			$4.00	4.1	$13,699

The weighted-average grant date fair value of options granted during the years ended September 30, 2015 and 2014 was $0.94 and $2.06, respectively. As of September 30, 2015, there was $143,022 of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested stock options, which is expected to be recognized over a weighted-average period of 1.4 years.

Changes in outstanding SARs for the two years ended September 30, 2015 are as follows:



	Number of SARs		Weighted Average Base Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at September 30, 2013	—		—
SARs assumed in IQinVision business combination	262,586			$3.11
SARs granted	—		—
SARs exercised	—		—
SARs forfeited	—		—
Outstanding at September 30, 2014	262,586			$3.11
SARs granted	—		—
SARs exercised	—		—
SARs forfeited	(161,592	)		$3.15
Outstanding at September 30, 2015	100,994			$3.05	.5	—
Exercisable at September 30, 2015	112,357			$3.06	.5	—

The weighted-average grant date fair value of SARs assumed in the IQinVision business combination was $1.05. As of September 30, 2015, there was $3,273 of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested SARs, which is expected to be recognized over a weighted-average period of 0.5 years.

On September 10, 2014, the Company entered into a Stock Agreement with its Chief Executive Officer whereby he is eligible to receive up to 600,000 restricted shares of the Company’s common stock (the “Shares”) in four equal installments on each of the first four anniversaries of his employment commencement date, so long as he is then employed by the Company. Notwithstanding the foregoing, 50,000 of the Shares otherwise issuable on the first anniversary of the commencement date were issued to him upon the Company’s Board of Directors’ approval of a restructuring plan for fiscal year 2015. An additional 100,000 of the Shares were issued in October 2015 following the one year anniversary of employment. The fair value of this award was $2.0 million based upon the market value of Company common stock at the date of grant. As of September 30, 2015, there was approximately $1.5 million of total unrecognized compensation cost related to this award, which is expected to be recognized over the four year vesting period.