Quarterly report pursuant to Section 13 or 15(d)

D. Stock-Based Compensation

v3.7.0.1
D. Stock-Based Compensation
9 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Stock-Based Compensation

Below is a summary of stock option activity for the nine months ended June 30, 2017:

          Weighted Average        
    Number of Shares     Exercise Price    

Remaining Contractual

Term (in years)

   

Aggregate Intrinsic

Value

 
Outstanding at 9/30/2016     12,204,000     $ 0.38       5.0     $ 1,125  
    Granted     760,000     $ 0.19       -     $ -  
    Exercised     -     $ -       -     $ -  
    Expired or Canceled     (243,000 )   $ 0.63       -     $ -  
    Forfeited     -     $ -       -     $ -  
Outstanding at 6/30/2017     12,721,000     $ 0.37       4.6     $ -  

 

For the nine months ended June 30, 2017, all stock options were granted with an exercise price at or above the fair market value of the Company’s common stock on the date of grant.

 

Below is a summary of stock option activity for the nine months ended June 30, 2016:

          Weighted Average        
    Number of Shares     Exercise Price    

Remaining Contractual

Term (in years)

   

Aggregate Intrinsic

Value

 
Outstanding at 9/30/2015     12,164,591     $ 0.42       5.4     $ 5,963  
    Granted     700,000     $ 0.23       -     $ -  
    Exercised     -     $ -       -     $ -  
    Expired or Canceled     (660,591 )   $ 0.82       -     $ -  
    Forfeited     -     $ -       -     $ -  
Outstanding at 6/30/2016     12,204,000     $ 0.38       5.0     $ -  

 

For the nine months ended June 30, 2016, all stock options were granted with an exercise price at or above the fair market value of the Company’s common stock on the date of grant.

 

The details of stock options for the nine months ended June 30, 2017 were as follows:

 

        Options Outstanding     Options Exercisable  
                    Weighted                 Weighted  
        Number     Weighted     Average     Number     Weighted     Average  
  Range of     Outstanding     Average     Remaining     Exercisable     Average     Remaining  
  Exercise Prices     at June 30, 2017     Exercise Price     Contractual Life (in years)     At June 30, 2017     Exercise Price     Contractual Life (in years)  
  $ 0.10-$0.20       1,010,000     $ 0.19       9.25       622,497     $ 0.19       9.07  
  $ 0.21-$0.30       3,537,500     $ 0.27       5.08       3,537,500     $ 0.27       5.08  
  $ 0.31-$0.40       6,551,500     $ 0.39       4.08       6,551,500     $ 0.39       4.08  
  $ 0.41-$0.50       500,000     $ 0.45       4.52       500,000     $ 0.45       4.52  
  $ 0.51-$0.60       791,250     $ 0.58       2.57       791,250     $ 0.58       2.57  
  $ 0.61-$0.70           $                 $        
  $ 0.71-$0.80       80,750     $ 0.76       3.48       80,750     $ 0.76       3.48  
  $ 0.81-$0.90       250,000     $ 0.90       0.04       250,000     $ 0.90       0.04  
            12,721,000                       12,333,497                  

 

Stock-based compensation expense recognized in the statement of operations is as follows (in thousands):

 

    For the three months ended June 30,     For the nine months ended June 30,  
    2017     2016     2017     2016  
Research and Development Expenses   $     $     $     $  
General and Administrative Expenses     29       33       83       108  
    $ 29     $ 33     $ 83     $ 108  

 

The total deferred compensation expense for outstanding and unvested stock options as of June 30, 2017 was $46,000. The weighted average remaining recognition period for the total deferred compensation expense is approximately six months. The fair value of the options associated with the above compensation expense was determined at the date of the grant using the Black-Scholes option pricing model with the following weighted average assumptions:

 

    For the three months ended June 30,     For the nine months ended June 30,  
    2017     2016     2017     2016  
Dividend yield     0 %     *     0 %     0 %
Pre-vest forfeiture rate     1.50 %     *     7.11 %     7.87 %
Expected volatility     112.28 %     *     107.51 %     117.14 %
Risk-free interest rate     1.91 %     *     1.52 %     1.42 %
Expected term     5.27 years     *   5.27 years     5.27 years  

* No stock options were granted for the three months ended June 30, 2017 and June 30, 2016