STOCKHOLDERS EQUITY

3 Months Ended

Dec. 31, 2023

STOCKHOLDERS EQUITY

STOCKHOLDERS' EQUITY

C. STOCKHOLDERS’ EQUITY

Proceeds from the Sale of Common Stock

In November 2023, the Company sold 2,490,000 shares of common stock at a public offering price of $2.00 per share and received aggregate gross proceeds of approximately $5.0 million.

Equity Compensation

Underlying share information for equity compensation plans as of December 31, 2023 is as follows:

Name of Plan	Total Shares Reserved Under Plans
Incentive Stock Option Plans		138,400
Non-Qualified Stock Option Plans		15,787,200
Stock Bonus Plans		1,283,760
Stock Compensation Plans		634,000
Incentive Stock Bonus Plan		640,000

 Stock option activity:

	Three Months Ended December 31,
	2023		2022
Options granted		-		2,500
Options exercised		-		-
Options forfeited		11,000		96,832
Options expired		-		45,400

Share-Based Compensation Expense:

	Three Months Ended December 31,
	2023		2022
Employees	$	1,383,909	$	1,692,831
Non-employees	$	218,386	$	148,858

Employee compensation expense includes the expense related to options and restricted stock that is expensed over the vesting periods. Non-employee expense includes the expense related to options and stock issued to consultants expensed over the period of the related service contracts.

Warrants and Non-Employee Options

The following chart represents the warrants and non-employee options outstanding at December 31, 2023:

Warrant/ Options	Issue Date	Shares Issuable upon Exercise of Warrants/ Options		Exercise Price		Expiration Date
Series N	8/18/2008		85,339	$	3.00	8/18/2024
Series UU	6/11/2018		93,603	$	2.80	6/30/2024
Series X	1/13/2016		120,000	$	9.25	7/13/2024
Series Y	2/15/2016		26,000	$	12.00	8/15/2024
Series MM	6/22/2017		333,432	$	1.86	6/22/2024
Series NN	7/24/2017		200,087	$	2.52	7/24/2024
Series RR	10/30/2017		234,009	$	1.65	10/30/2024
Consultant Options	7/28/2017 – 9/2/2023		110,000	$	1.39 - $2.18	7/27/2027 - 9/1/2028

1. Equity Warrants

Changes in Equity Warrants

No warrants recorded as equity were exercised during the three months ended December 31, 2023. The following warrants recorded as equity were exercised during the three months ended December 31, 2022.

Warrants	Warrants Exercised		Exercise Price		Proceeds
Series RR		17,752	$	1.65	$	29,291
Series SS		200,000	$	2.09		418,000
		217,752			$	447,291

No warrants recorded as equity expired or were extended during the three months ended December 31, 2023. On October 28, 2022, the expiration date of the Series RR warrants was extended two years from October 30, 2022 to October 30, 2024. The incremental cost of this extension was approximately $172,000, which was recorded as a deemed dividend in the financial statements for the three months ended December 31, 2022. The Series RR warrants are held by Geert Kersten, Patricia Prichep (current Officers of the Company) and the de Clara Trust, of which the Company’s CEO, Geert Kersten, is a beneficiary.

2. Options and Shares Issued to Consultants

During the three months ended December 31, 2023 and 2022, the Company issued 88,573 and 40,236 shares, respectively, of restricted common stock to consultants for services. The weighted average grant date fair value of the shares issued to consultants was $1.56 and $2.53 during the three months ended December 31, 2023 and 2022, respectively.

No options were issued to a consultant during the three months ended December 31, 2023. During the three months ended December 31, 2022, 5,000 options with an exercise price of $11.61 issued to a consultant expired.

During the three months ended December 31, 2023 and 2022, the Company recorded total expense of approximately $218,000 and $149,000, respectively, relating to the share-based compensation under various consulting agreements. On December 31, 2023 and September 30, 2023, consulting fees of approximately $134,000 and $205,000, respectively, are included in current assets as prepaid expenses and will be amortized over the remaining service periods.