NOTE 11 – STOCK-BASED COMPENSATION

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 $97,000 and $968,000 in stock-based compensation expense for the years ended September 30, 2021 and 2020, respectively. None of these costs were capitalized to unproved properties for the year ended September 30, 2021 and approximately $498,000 were capitalized to unproved properties for year ended September 30, 2020, with the remainder recorded as general and administrative expenses. During the year ended September 30, 2021, 41.5 million options were granted at an exercise price of $0.004 with a vesting schedule of 50% six months and 50% one year after grant. The fair value of the options computed using Black Scholes was approximately $129,000.

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. 

The following table summarizes the Company’s stock option activity during the year ended September 30, 2021:

As of September 30, 2021, there was approximately $32,000 of unrecognized stock-based compensation expense.