WARRANTS AND STOCK OPTIONS

9 Months Ended

Jun. 30, 2021

WARRANTS AND STOCK OPTIONS

WARRANTS AND STOCK OPTIONS

NOTE G —WARRANTS AND STOCK OPTIONS

Warrants

The following table summarizes the changes in warrants outstanding. These warrants were granted in lieu of cash compensation for services performed or as financing expenses in connection with the sales of the Company’s common stock.

Transactions involving warrants (see Note E) are summarized as follows:

		Weighted
		Average
		Exercise
	Number of	Price Per
	Shares	Share
Balance at October 1, 2020	1,038,919	$	10.83
Granted	259,000		7.14
Exercised	(520,151)		5.25
Cancelled or expired	(32,500)		171.56
Balance at June 30, 2021	745,268	$	6.44

Stock Options

For the three and nine-month periods ended June 30, 2021, the Company issued an aggregate of 44,400 and 198,405 options, respectively to employees, officers, non-employee board of director members and a consultant.

The fair value of options granted during the three and nine-month periods ended June 30, 2021 was determined using the Black Scholes Option Pricing Model. For the purposes of the valuation model,  the Company used the simplified method for determining the granted options expected lives. The simplified method is used since the Company does not have adequate historical data to utilize in calculating the expected term of options. The fair value for options granted during the three-month period ended June 30, 2021 was calculated using the following weighted average assumptions: stock price $6.35; exercise price $6.35; expected term 5 years; dividend yield 0; volatility 144%; and risk-free rate of 0.84%.The fair value for options granted during the nine-month period ended June 30, 2021 was calculated using the following weighted average assumptions: stock price $6.43; exercise price $6.43; expected term 5.10 years; dividend yield 0; volatility 141%; and risk-free rate of 0.46%. The weighted average grant date fair value per share for options granted during the three and nine-month periods ended June 30, 2021 was  $5.68 and $5.72, respectively.