STOCK-BASED COMPENSATION

9 Months Ended

Jun. 30, 2018

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

2.	STOCK-BASED COMPENSATION

The Company’s 2008 Stock Option Plan (“the Plan”) is used to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees and aligning their interests with those of our shareholders. The Plan is described more fully in Note 9 in the Notes to the Consolidated Financial Statements in our Form 10-K for the fiscal year ended September 30, 2017. All options granted under the Plan had an exercise price equal to the market value of the underlying common shares on the date of grant. We expense the estimated fair value of stock options over the vesting periods of the grants. We recognize expense for awards subject to graded vesting using the straight-line attribution method, reduced for estimated forfeitures. Forfeitures are revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates and an adjustment is recognized at that time. Stock based compensation expense for the three and nine months ended June 30, 2018 was $33 and $102, respectively. Stock based compensation expense for the three and nine months ended June 30, 2017 was $6 and $13, respectively.

In March 2018, our shareholders approved the amendment and restatement of the Plan in the form of the Amended and Restated 2018 Equity Incentive Plan (the “Equity Plan”) and future equity awards will be granted from the Equity Plan. The purpose of the Equity Plan is to promote our long-term interests by providing a means of attracting and retaining officers, directors and key employees. The maximum number of common shares that may be granted under the Equity Plan is 700 shares.

A summary of our stock option activity for the nine months ended June 30, 2018 is as follows (in thousands except for share prices):

	Options (shares)			Weighted- Average Exercise Price		Weighted- Average Grant Date Fair Value

Outstanding - October 1, 2017		140		$	1.91	$	1.45
Exercised		(3	)	$	1.40	$	1.36
Granted		198		$	1.94	$	1.52
Forfeited		(15	)	$	3.97
Outstanding - June 30, 2018		320		$	1.83	$	1.45

The weighted-average assumptions used to compute the fair value of the options granted in the nine months ended June 30, 2018 were as follows:

Risk-free interest rate	2.31	%
Dividend yield	0.00	%
Volatility of the expected market price of the Company's common shares	83.70	%
Expected life of the options (years)	8.0

As of June 30, 2018, our total unrecognized compensation cost related to non-vested stock options was $215 and is expected to be recognized over a weighted-average service period of 1.4 years.