Annual report pursuant to Section 13 and 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
12 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 11 – STOCK-BASED COMPENSATION

 

During the year ended September 30, 2020, upon the passing of a member of the management team, the Company modified the vesting terms of a stock option grant previously made to this individual which vested the instrument immediately. The option was for three million shares and was originally granted in June 2018. 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 approximately $968,000 and $ 1,629,000 in stock-based compensation expense for the years ended September 30, 2020 and 2019, respectively. A portion of these costs, approximately $498,000 and $885,000 were capitalized to unproved properties for year ended September 30, 2020 and 2019, respectively, with the remainder recorded as general and administrative expenses for each respective period. The Company did not issue any new stock option grants during the year ended September 30, 2020.

 

The following table summarizes the Company’s stock option activity during the year ended September 30, 2020:

 

 

 

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 September 30, 2020

 

104,500,000

 

 

$

0.0605

 

 

 

4.5

 

Vested and expected to vest

 

 

104,500,000

 

 

$

0.0605

 

 

 

4.5

 

Exercisable at September 30, 2020

 

 

104,500,000

 

 

$

0.0565

 

 

 

4.5

 

 

As of September 30, 2020, there was no unrecognized stock-based compensation expense.