Table:
|  | Years Ended |  |
| --- | --- | --- |
|  | September 30, 2019 | September 30, 2018 |
|  | (Amounts in thousands) |  |
| Cost of sales | $7 | $5 |
| Engineering and development | 49 | 32 |
| Selling, general and administrative | 736 | 654 |
| Total | $792 | $691 |
Paragraphs:
The following table summarizes stock-based compensation expense in the Company’s consolidated statements of operations:
For the year ended September 30, 2019, the Company granted 33,000 nonvested shares to certain key employees, 55,000 nonvested shares to certain officers including 35,000 shares granted to the Chief Executive Officer, and 20,000 nonvested shares
to its non-employee directors. For the year ended September 30, 2018, the Company granted 12,000 nonvested shares to certain key employees, 40,000 nonvested shares to certain officers including 30,000 to its Chief Executive Officer and 20,000 nonvested
shares to its non-employee directors.
The Company measures the fair value of nonvested stock awards based upon the market price of its common stock as of the date of grant. The Company used the Black-Scholes option-pricing model to value stock options. The Black-Scholes model requires the use of a number of assumptions including volatility of the Company’s stock price, the weighted average risk-free interest rate and the weighted average expected life of the options, at the time of grant. The expected dividend yield is equal to the divided per share declared, divided by the closing share price on the date the options were granted. All equity compensation awards granted for the years ended September 30, 2019 and September 30, 2018 were nonvested stock awards.
Question:
How does the company measure the value of the nonvested stock awards?
Answer: Based upon the market price of its common stock as of the date of grant.