SHARE-BASED COMPENSATION

9 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED COMPENSATION

NOTE 5          SHARE-BASED COMPENSATION

     The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table. The expected term represents the period over which the stock option awards are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The expected volatility used is based on the historical price of the Company’s stock over the most recent period commensurate with the expected term of the award. The risk-free interest rate used is based on the implied yield of U.S. Treasury zero-coupon issues with a remaining term equivalent to the award’s expected term. The Company historically has not paid any dividends on its common stock and had no intention to do so on the date the share-based awards were granted. The estimated annual forfeiture rate is based on management’s expectations and will reduce expense ratably over the vesting period. The forfeiture rate will be adjusted periodically based on the extent to which actual option forfeitures differ, or are expected to differ, from the previous estimate, when it is material.

	For The Three	For The Nine
	Months Ended	Months Ended
	June 30, 2015	June 30, 2015
Expected term (years)	5.90	5.90
Expected volatility	64.4%	64.4%
Risk free interest rate	1.92%	1.92%
Expected dividends	0%	0%
Estimated annual forfeiture rate	10%	10%

     There were no options granted during the three and nine months ended June 30, 2016. The weighted average grant date fair value of options granted during the three and nine months ended June 30, 2015 was $0.38.

       The following table summarizes stock option activity during the nine months ended June 30, 2016:

				Weighted
			Weighted	Average
			Average	Remaining
	Number of		Exercise	Life		Intrinsic
	Options		Price	In Years		Value
Outstanding, September 30, 2015	311,000	$	2.39
Granted	-
Exercised	-
Forfeited	(40,000)		3.35
Outstanding, June 30, 2016	271,000	$	2.24	5.1	$	33,375
Exercisable, June 30, 2016	223,250	$	2.58	4.2	$	8,100

     The Company recognized compensation expense (credit) of approximately $(1,000) and $1,000 during the three months ended June 30, 2016 and 2015, respectively, and approximately $9,000 and $(36,000) during the nine months ended June 30, 2016 and 2015, respectively, in continuing operations for stock option awards in its condensed consolidated statements of operations and comprehensive income (loss).

     As of June 30, 2016, there was approximately $11,000 of total unrecognized compensation cost related to nonvested stock option awards. That cost is expected to be recognized over a weighted average period of 1.6 years.

      The following table provides additional information regarding stock option awards that were outstanding and exercisable at June 30, 2016:

Options Outstanding				Options Exercisable
	Weighted			Weighted		Weighted
	Average		Outstanding	Average		Average	Exercisable
Exercise	Exercise		Number of	Exercise		Remaining Life	Number of
Price	Price		Options	Price		In Years	Options
$0.64 to $1.99	$	0.99	102,500	$	1.28	5.7	55,000
$2.00 to $2.99		2.46	96,000		2.46	3.1	95,750
$3.00 to $3.99		3.74	72,500		3.74	4.6	72,500
			271,000			4.2	223,250

Restricted Stock Awards

     On October 26, 2015, the Company granted 17,500 shares of restricted stock, pursuant to the 2007 Plan, to a former director of the Company. The shares vested on December 31, 2015. The grant date value of $19,775 was recognized over the service period.

     On October 26, 2015, the Company accelerated the vesting date of 35,000 shares of restricted stock that were previously granted to a director of the Company from February 23, 2016 to December 31, 2015. The Company analyzed the modification as of the modification date and determined that the modification did not result in any incremental compensation expense, however, the remaining unamortized compensation expense attributable to the original award was recognized over the modified remaining service period.

     On February 23, 2016, the Company granted an aggregate of 124,317 shares of restricted stock to directors of the Company, pursuant to the 2007 Plan. The shares vest on the one-year anniversary from the date of grant. The aggregate grant date value of $182,746 will be recognized ratably over the vesting period.

     The Company recognized compensation expense of approximately $52,000 and $42,000 during the three months ended June 30, 2016 and 2015, respectively, and approximately $174,000 and $39,000 during the nine months ended June 30, 2016 and 2015, respectively, in continuing operations for restricted stock awards in its condensed consolidated statements of operations and comprehensive income (loss).

     As of June 30, 2016, there was approximately $135,000 of total unrecognized compensation cost related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted average period of 0.7 years.

      The following table summarizes restricted stock activity during the nine months ended June 30, 2016:

		Weighted
		Average		Total
	Number of	Grant Date		Grant Date
	Shares	Fair Value		Fair Value
Non-vested, September 30, 2015	263,332	$	0.87	$	230,165
Granted	141,817		1.43		202,521
Vested	(209,166)		0.96		(200,958)
Forfeited	(1,666)		1.67		(2,782)
Non-vested, June 30, 2016	194,317	$	1.18	$	228,946