8. Stockholders' Equity
|12 Months Ended|
Sep. 30, 2012
|NOte 8 - Stockholders' Equity||
The following is a summary of warrants outstanding during the years ended September 30, 2012 and 2011:
The Company has adopted stock option plans that authorize the granting of options to key employees, directors, and consultants to purchase unissued common stock subject to certain conditions, such as continued employment. Options are generally granted at the fair market value of the Company's common stock at the date of grant, become exercisable over a period of five years from the date of grant, and generally expire in six or ten years specific to their respective plan. Forfeitures of stock options are returned to the Company and become available for grant under the respective plan. Upon exercise the Company issues new shares of common stock.
During the fiscal year ended September 30, 2012, the Board of Directors authorized the grant of 281,000 non-qualified options. On October 10, 2011, the Board of Directors approved the exchange of 171,000 out-of-money, fully-vested stock options, to certain employees, for an equal number of stock options at the current market price on that date of $0.13 per option. As a result of the modification, the Company recorded an additional expense of $9,000. On May 17, 2012, the Board of Directors authorized the grant of fully vested, non-qualified stock options to purchase 110,000 shares to two individuals, with an exercise, price per share of $0.05, based on the closing price of the Company's common stock on the date of grant
On May 10, 2011, the Board of Directors authorized the grant of non-qualified stock options to purchase 469,000 shares to 19 individuals. The exercise price per share was $0.14, based on the closing price of the Company's common stock on the date of grant. The majority of these options vest over three years and expire ten years from the date of grant.
Stock Options Outstanding:
On August 13, 2003 the Company's Board of Directors adopted the 2003 Non-statutory Stock Option Plan ("2003 Plan") for issuance of stock options to employees and others. Under the 2003 Plan, the Company reserved two million shares for issuance. As of September 30, 2012 and 2011, 996,350 and 1,109,960 options were available for issuance under the 2003 Plan, respectively.
The following table summarizes information concerning outstanding and exercisable options at September 30, 2012:
The weighted-average grant date fair value of options granted during the fiscal years ended September 30, 2012 and 2011, was $0.10 and $0.14 per option, respectively. There were no options exercised during the fiscal years ended September 30, 2012 and 2011.
The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.
Reference 1: http://www.xbrl.org/2003/role/presentationRef