STOCK-BASED COMPENSATION

12 Months Ended

Sep. 30, 2016

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

STOCK-BASED COMPENSATON

10. STOCK-BASED COMPENSATION

Summary of Stock Option Plans and Activity

In March 2008, our shareholders approved the 2008 Stock Option Plan (the “Plan”) to replace the 1997 Outside Director Stock Option Plan and the 1997 Employee Stock Option Plan. Future common shares will be granted from the 2008 Stock Option Plan. The purpose of the Plan is to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees. The Compensation Committee administers the Plan and approves the particular officers, directors or employees eligible for grants. Under the Plan, employees are granted the option to purchase our common shares at fair market value on the date of the grant. Generally, options granted vest and become exercisable in four equal installments commencing one year from date of grant and expire upon the earlier of the employee’s termination of employment with us, or ten years from the date of grant. The Plan terminates in fiscal 2018. The maximum number of common shares that may be granted under the Plan is 500 shares. At September 30, 2016, 228 shares remained available for grants under the Plan.

The Compensation Committee has also issued non-qualified stock option grants with vesting periods different from the Plan. As of September 30, 2016 and 2015, total non-qualified stock options outstanding were 15 and 30, respectively.

The weighted-average assumptions used to compute the fair value of options granted for the fiscal years ended September 30 were as follows:

	2016		2015
Risk-free interest rate		1.58%		2.15%
Dividend yield		0.00%		0.00%
Volatility of the expected market price of the Company's common shares		97.5%-97.5%		95.70%-100.10%
Expected life of the options (years)		8.0		8.0

A summary of our stock option activity for all options and related information for the years ended September 30, 2016 and 2015, respectively, is as follows (in thousands except for share prices): 

				Weighted-		Weighted-
		Weighted-		Average		Average
		Average		Grant		Remaining		Aggregate
	Options	Exercise		Date		Contractual		Intrinsic
	(shares)	Price		Fair Value		Life		Value
Outstanding - October 1, 2014	426	$	1.83
Exercised	(128)	$	1.38	$	1.12
Granted	65	$	2.07	$	1.72
Terminated	(44)	$	4.23
Outstanding - September 30, 2015	319	$	1.73	$	1.38
Outstanding - October 1, 2015	319	$	1.73
Exercised	(3)	$	1.14	$	0.95
Granted	10	$	0.94	$	0.79
Terminated	(64)	$	1.49
Outstanding - September 30, 2016	262	$	1.76	$	1.39		6.4	$	11
Exercisable at September 30, 2016	209	$	1.75	$	1.36		5.8	$	9

The aggregate intrinsic value is the product of the total options outstanding and the net positive difference of our common share price on September 30, 2016 and the options’ exercise price.

As of September 30, 2016, our total unrecognized compensation cost related to non-vested stock options was $68 and is expected to be recognized over a weighted-average service period of 1.4 years. As of September 30, 2016, there are 15 shares underlying outstanding options that were granted outside of the Plan. Stock-based compensation expense for employee stock options for the years ended September 30, 2016 and 2015 was $45 and $79, respectively.

The following table summarizes outstanding and exercisable options as of September 30, 2016 (in thousands except per share amounts):

			Weighted
			average		Weighted				Weighted
Range of			Remaining		average				average
Exercise	Shares		Contractual		Exercise		Shares		Exercise
Prices	Outstanding		Life (Yrs)		Price		Exercisable		Price
$0.79 - $1.50		146		5.85	$	1.20		136	$	1.22
$1.51 - $4.00		100		7.83	$	2.04		57	$	2.05
$4.01 - $8.79		16		1.93	$	5.09		16	$	5.09