12. STOCK-BASED COMPENSATION

3 Months Ended

Dec. 31, 2022

12.

STOCK-BASED COMPENSATION

STOCK OPTIONS

The following is a summary of stock option activity during the three months ended December 31, 2022:


	Number of Option Shares			Weighted Average Exercise Price ($)
Balance, September 30, 2022		1,418,938			19.11
Options granted		47,000			3.34
Options expired		(25,000	)		5.60
Options canceled/forfeited		(55,886	)		14.02
Options exercised		—
Balance, December 31, 2022		1,385,052		19.02

As of December 31, 2022, there are options exercisable to purchase 830,572 shares of common stock in the Company and 554,480 unvested options outstanding that cannot be exercised until vesting conditions are met. As of December 31, 2022, the outstanding options have a weighted average remaining term of 6.6 years and no intrinsic value.

For the three months ended December 31, 2022, the Company also granted 47,000 options to purchase shares of common stock to employees with a total fair value of $157.

The Black-Scholes model utilized the following inputs to value the options granted during the three months ended December 31, 2022:


Fair value assumptions Options:	December 31, 2022
Risk free interest rate	1.04% - 3.65%
Expected term (years)	4.99 - 7.35
Expected volatility	187.18% - 533.00%
Expected dividends		0	%

As of December 31, 2022, the Company expects to recognize $11,691 of stock-based compensation for the non-vested outstanding options over a weighted-average period of less than one-year.

RESTRICTED STOCK UNITS

The following table summarizes the performance-based restricted stock units at the maximum award amounts based upon the respective performance share agreements. Actual shares that will vest depend on the attainment of the performance-based criteria.


	Number of Shares			Weighted Average Fair Value Per Share		Aggregate Intrinsic Value
Outstanding at September 30, 2022		5,448,548		$	4.93	$	17,326
Granted		390,552			2.55
Vested		(17,358	)		9.77
Forfeited		(4,048	)		29.34
Outstanding at December 31, 2022		5,817,694		$	4.73	$	11,868

During the three months ended December 31, 2022, the Company granted 390,552 RSUs, all of which are service period based. Included in these grants are 355,552 RSU granted to members of the Board of Directors, which are subject to shareholder approval of an increase in the number of shares available under the Company’s equity incentive plan in March 2023 and vest quarterly over the fiscal year 2023 and have a combined grant date fair value of $800.

As of December 31, 2022, the Company had $22,760 in unrecognized compensation costs related to RSU awards that it expects to recognize over a weighted average period of 2.5 years.