STOCK OPTIONS AND WARRANTS

3 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

NOTE E - STOCK OPTIONS AND WARRANTS

Warrants

The following table summarizes the changes in warrants outstanding and the related prices for the shares of common stock issued to non-employees of the Company. These warrants were granted in lieu of cash for services performed or financing expenses in connection with the sale of common stock.

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

	Number of Shares			Weighted Average Exercise Price Per Share
Balance at October 1, 2015		6,027,654		$	3.54
Granted		1,300,000			4.29
Exercised		(1,260	)		(3.50	)
Cancelled or expired		(1,667	)		(10.74	)
Balance at December 31, 2015	$	7,324,727		$	3.67

Employee Stock Options

In 2005, the Board of Directors and the holders of a majority of the outstanding shares of common stock approved the 2005 Incentive Stock Plan (the “Incentive Plan”). In 2007, 2008, 2012 and 2015, the Board of Directors and holders of a majority of the outstanding shares of common stock approved various increases in the number of shares of common stock that can be issued as stock awards and stock options thereunder to an aggregate of 8,833,333 shares and the number of shares of common stock that can be covered by awards made to any participant in any calendar year to 833,334 shares. The Incentive Plan’s expiration date is January 25, 2025.

The Incentive Plan is designed to retain directors, executives, and selected employees and consultants by rewarding them for making contributions to the Company's success with an award of options to purchase shares of common stock and an award of shares of common stock. As of December 31, 2015 a total of 269,752 shares have been issued and options to purchase 4,666,469 shares have been granted under the Incentive Plan.

Transactions involving stock options issued to employees are summarized as follows:

	Number of Shares			Weighted Average Exercise Price Per Share			Aggregate Intrinsic Value
Outstanding at October 1, 2015		3,458,905		$	4.74
Granted		531,523			3.04
Exercised		(75,000	)		(2.86	)
Cancelled or expired		(25,008	)		(4.20	)
Outstanding at December 31, 2015		3,890,420		$	4.26
Vested at December 31, 2015		2,819,006		$	4.23		$	0.97
Non-vested at December 31, 2015		1,071,415					$	0.87

During the three month period ended December 31, 2015, the Company issued an aggregate of 531,523 options to employees and non-employee board of director members. Included in these grants were 160,000 options granted to executives.

The fair value of options granted during the three month periods ended December 31, 2015 and 2014 was determined using the Black Scholes Option Pricing Model with the following weighted average assumptions:

	Three Months Ended December 31, 2015			Three Months Ended December 31, 2014
Stock price	$	3.04		$	2.84
Exercise price	$	3.04		$	2.84
Expected term, years		6.10			4.86
Dividend yield		—	%		—	%
Volatility		130	%		132	%
Risk free rate		1.8	%		1.58	%

The Company recorded $396,991 and $1,998,524 as stock compensation expense for the three month periods ended December 31, 2015 and 2014, respectively. As of December 31, 2015, unrecorded compensation cost related to non-vested awards was $3,402,145 which is expected to be recognized over a weighted average period of approximately 2.35 years. The weighted average grant date fair value per share for options granted during the three month period ended December 31, 2015 was $2.71.