SHARE-BASED COMPENSATION

9 Months Ended

Jun. 30, 2016

Share-Based Compensation [Abstract]

Share-Based Compensation

NOTE 10. SHARE-BASED COMPENSATION 

The Company provides its employees, officers, consultants and directors with stock options, restricted stock units and other stock rights for common stock of the Company on a discretionary basis. All option and restricted stock unit grants are subject to the terms and conditions determined by the Compensation and Stock Committee of the Board of Directors, and generally vest over a three-year period beginning three months from the date of grant and expire either seven or ten years from the date of grant. All awards granted during the nine months ended June 30, 2016 were granted under our Second Amended and Restated Equity Compensation and Incentive Plan (the “2011 Plan”).  At June 30, 2016, there were 266,904 shares available for future issuance under the 2011 Plan.

Generally, stock options are granted at exercise prices not less than the fair market value at the date of grant. All of the Company’s share-based awards are accounted for as equity instruments and there have been no liability awards granted. Share-based compensation expense for share-based payment awards, issued to employees and directors, is measured based on the grant-date fair value of the award and recognized on a straight-line basis over the requisite period of the award.  Share-based compensation expense for share-based payment awards, issued to non-employees, is revalued each fiscal, quarter based on the current fair value of the award, and recognized on over the requisite period of the award.

Stock Options

The Company estimates the fair value of each stock option grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock price volatility, the expected life of options, a risk-free interest rate and dividend yield.

The following table is a summary of combined activity for all of the Company’s stock options:  

		Weighted-		Weighted-
		Average		Average	Aggregate
		Exercise		Remaining	Intrinsic
	Number of Options	Price Per Share		Life (In years)	Value (In thousands)
Outstanding, September 30, 2015	302,500	$	6.15	2.86	$	446
Granted	-		-	-		-
Canceled/Forfeited	(5,000)		3.61	-		7
Exercised	(22,500)		4.73	1.00		15
Outstanding, June 30, 2016	275,000	$	6.31	2.26	$	341
Exercisable, June 30, 2016	275,000	$	6.31	2.26	$	341
Unvested awards expected to vest, June 30, 2016	-	$	-	-	$	-

Restricted Stock Units

The fair value related to the restricted stock units (“RSUs”) issued to employees and directors, is calculated based on the closing stock price of the Company’s common stock on the date of the grant and is amortized ratably over the vesting period of the award.  The fair value related to the restricted stock units (“RSUs”) issued to non-employees, is revalued each fiscal quarter, based on the current closing stock price of the Company’s common stock, and is amortized ratably over the vesting period of the award.

The following table presents nonvested RSU information for the nine months ended June 30, 2016:   

	Number of
	RSUs
	Outstanding
Nonvested, September 30, 2015		569,564
Granted		401,800
Canceled/Forfeited		(176,364)
Vested		(213,911)
Nonvested, June 30, 2016		581,089