Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
3 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 8 – STOCK-BASED COMPENSATION

 

During the three months ended December 31, 2019, upon the passing of a member of the management team, the Company modified a stock option grant for three million shares made to said management team member in June 2018 to vest such award immediately. The Company recorded approximately $8,000 in additional compensation expense related to this modification.

 

Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award using the Black Scholes option pricing model, and is recognized over the vesting period. The Company recognized $367,841 and $393,000 in stock-based compensation expense for the quarters ended December 31, 2019 and 2018, respectively. A portion of these costs, $186,675 and $318,658 were capitalized to unproved properties for the three months ended December 31, 2019 and December 31, 2018, respectively, with the remainder recorded as general and administrative expenses for each respective period.

 

The following table summarizes the Company’s stock option activity during the three months ended December 31, 2019:

 

    Number
of Options
    Weighted
Average
Exercise Price
    Weighted Average
Remaining
Contractual Term
(In years)
 
Outstanding at September 30, 2019     104,500,000     $ 0.0605          
Granted                    
Exercised                    
Cancelled                    
Outstanding at December 31, 2019     104,500,000     $ 0.0605       2.07  
Vested and expected to vest     104,500,000     $ 0.0605       2.07  
Exercisable at December 31, 2019     82,500,000     $ 0.0565       1.92  

 

As of December 31, 2019, there was approximately $0.6 million of unrecognized stock-based compensation expense to be recognized over a period of four months.