Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.22.2.2
Equity
 9 Months Ended
Jun. 30, 2022
Equity  
Equity

11. Equity

 

Preferred Stock

 

The Company has authorized 20,000 shares of preferred stock of which 1,000 shares have been designated Series A Preferred Stock, and no shares were issued or are outstanding; 5,950 shares have been designated Series B Preferred Stock, of which 5,926 shares were issued and none remain outstanding, and 3,000 shares have been designated Series C Preferred Stock, of which 2,093 shares were issued and none remain outstanding as of June 30, 2022 and September 30, 2021. Based on the terms of the Series B Convertible Preferred Stock, if certain fundamental transactions were to occur, the Series B Convertible Preferred Stock would require redemption, which would preclude permanent equity classification on the accompanying condensed consolidated balance sheets. The Series C Convertible Preferred Stock has a Liquidation Value equal to $1.00 per share and ranks pari passu with the Company’s Series B Convertible Preferred Stock and senior to all “Junior Securities” (including the Company’s Common Stock) with respect to any distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary.

 

Amended and Restated 2013 Incentive Stock Plan

 

As of June 30, 2022, there were stock options outstanding under the Company’s Amended and Restated 2013 Incentive Stock Plan (the “Plan”). During fiscal 2021, the 2013 Incentive Stock Plan was amended to increase the total shares available for restricted stock and stock option grants by 10,000 to a total of 15,000 (7,500 restricted stock shares and 7,500 stock option shares). The Plan authorizes the Compensation Committee of the Board of Directors to grant either incentive or non-statutory stock options to employees. Vesting periods are established by the Compensation Committee at the time of grant. As of June 30, 2022, there were 9,771 shares available to be granted under the Plan (4,913 shares available for stock option grants and 4,858 shares available for restricted stock grants).

  

Restricted Stock

 

The Company granted 100 shares of restricted common stock during the nine-month period ended June 30, 2022. Share-based compensation expense attributable to restricted stock was $76 and $224, and $138 and $475 during the three and nine-month periods ended June 30, 2022 and 2021, respectively. As of June 30, 2022, there was approximately $391 of unrecognized compensation expense related to restricted stock outstanding, and the weighted average vesting period for those grants was 3.08 years.

A summary of restricted stock activity is presented as follows:

 

 

 

Number of Shares

 

 

Weighted Average Fair Value ($)

 

Non-vested restricted stock outstanding as of September 30, 2021

 

 

 1,442

 

 

 

 0.60

 

Granted

 

 

 -

 

 

 

 -

 

Vested

 

 

 -

 

 

 

 -

 

Non-vested restricted stock outstanding as of December 31, 2021

 

 

 1,442

 

 

 

 0.60

 

Granted

 

 

 100

 

 

 

 0.53

 

Vested

 

 

 -

 

 

 

 -

 

Non-vested restricted stock outstanding as of March 31, 2022

 

 

 1,542

 

 

 

 0.59

 

Granted

 

 

 -

 

 

 

 -

 

Vested

 

 

 -

 

 

 

 -

 

Non-vested restricted stock outstanding as of June 30, 2022

 

 

 1,542

 

 

 

 0.59

 

 

Warrants 

 

The Company had 77 warrants outstanding as of June 30, 2022 and September 30, 2021 with a weighted average exercise price per share of $2. The outstanding warrants had a weighted average remaining contractual life of 2.76 and 3.50 as of June 30, 2022 and September 30, 2021, respectively. No warrants were granted or expired during the three and nine-month periods ended June 30, 2022 and 2021. 

 

Stock Options

 

All stock options outstanding as of June 30, 2022 and September 30, 2021 were non-statutory stock options, had exercise prices equal to the market price on the date of grant, and had expiration dates ten years from the date of grant.

 

Share-based compensation expense attributable to stock options and warrants was $93 and $244, and $93 and $360 for the three and nine-month periods ended June 30, 2022 and 2021, respectively. As of June 30, 2022, there was approximately $678 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average remaining vesting period for those options was 3.78 years.

  

A summary of stock option activity is presented as follows:

 

 

 

Number of Shares

 

 

Weighted Average Exercise Price Per Share ($)

 

 

Weighted Average Remaining Contractual Life (Years)

 

 

Total Intrinsic Value of Options ($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Options outstanding as of September 30, 2021

 

 

 1,672

 

 

 

 2.14

 

 

 

 7.35

 

 

 

 -

 

Granted

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Forfeited

 

 

 (1 )

 

 

 2.99

 

 

 

 -

 

 

 

 -

 

Options outstanding as of December 31, 2021

 

 

 1,671

 

 

 

 2.14

 

 

 

 7.10

 

 

 

 -

 

Granted

 

 

 50

 

 

 

 0.53

 

 

 

 -

 

 

 

 -

 

Forfeited

 

 

 (80 )

 

 

 1.12

 

 

 

 -

 

 

 

 -

 

Options outstanding as of March 31, 2022

 

 

 1,641

 

 

 

 2.14

 

 

 

 6.89

 

 

 

 -

 

Granted

 

 

 865

 

 

 

 0.59

 

 

 

 -

 

 

 

 -

 

Forfeited

 

 

 (101 )

 

 

 0.88

 

 

 

 -

 

 

 

 -

 

Options outstanding as of June 30, 2022

 

 

 2,405

 

 

 

 1.55

 

 

 

 7.87

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable as of September 30, 2021

 

 

 890

 

 

 

 3.14

 

 

 

 6.08

 

 

 

 -

 

Exercisable as of June 30, 2022

 

 

 1,114

 

 

 

 2.58

 

 

 

 6.07

 

 

 

 -