The following is a summary of stock warrant activity during the years ended September 30, 2018 and September 30, 2017.

	Number of Warrant Shares			Weighted Average Exercise Price
Balance, September 30, 2016		13,112,100		$	0.59
Warrants granted		—		$	—
Warrants expired		—			—
Warrants canceled		—			—
Warrants exercised		(4,500,000	)		0.083
Balance, September 30, 2017		8,612,100		$	0.85
Warrants granted		1,191,600		$	0.80
Warrants expired		—			—
Warrants canceled		—			—
Warrants exercised		(814,401	)		0.36
Balance, September 30, 2018		8,989,299		$	0.89

As of September 30, 2018, the outstanding warrants have a weighted average remaining term of was 4.85 years and an intrinsic value of $45,021,758.

As of September 30, 2018, there are warrants exercisable to purchase 8,417,870 shares of common stock in the Company and 571,429 unvested warrants outstanding that cannot be exercised until vesting conditions are met. 4,498,647 of the outstanding warrants require a cash investment of $1.50 per share to exercise and 4,490,652 of the outstanding warrants contain provisions allowing a cashless exercise at their respective exercise price.

Warrant activity for the year ended September 30, 2018

During the year ended September 30, 2018, certain investors exercised warrants to purchase 258,401 shares of the Company’s common stock at purchase prices ranging from $0.083 to $1.50. The Company received total proceeds of $44,938 from the warrant exercises.

During the year ended September 30, 2018, a total of 459,889 shares of the Company’s common stock were issued in connection with the cashless exercise of 556,000 common stock warrants with an exercise prices of $0.36.

On January 1, 2018, the Company issued warrants to purchase 100,000 shares of common stock at an exercise price of $0.80 per share to an advisor for business advisory services. The warrants were valued at $234,095 using the Black Scholes option pricing model. The warrants vest evenly over the six-month service period ended September 30, 2018.

On June 15, 2018, the Company issued 116,600 5-year warrants exercisable at $0.80 to a lender in connection with a promissory note agreement. (See Note7 for additional details.)

On August 1, 2018, the Company issued 25,000 5-year warrants exercisable at $0.80 to a lender in connection with a promissory note agreement. (See Note 7 for additional details.)

On August 28, 2018, in connection with the Consulting agreement executed with Zero Positive, LLC. the Company issued warrants to purchase 900,000 shares of common stock at an exercise price of $0.80 per share to an Zero Positive. The warrants were valued at $2,607,096 using the Black Scholes option pricing model. The warrants vest as follows: 300,000 warrants vested immediately, the balance vest evenly on the last day of each month over the forty-two months beginning August 31, 2018. As of September 30, 2018, 328,571 warrants had vested, and the Company recorded an expense of $951,797 during the year ended September 30, 2018. (See Note 10 for additional details.)

On September 20, 2018, the Company issued 25,000 5-year warrants exercisable at $0.80 to a lender in connection with a promissory note agreement. (See Note 7 for additional details.)

On September 21, 2018, the Company issued 25,000 5-year warrants exercisable at $0.80 to a lender in connection with a promissory note agreement. (See Note 7 for additional details.)

The Black-Scholes model utilized the following inputs to value the warrants granted during the year ended September 30, 2018:

Fair value assumptions – Warrants:	September 30, 2018
Risk free interest rate		2.01-3.05%
Expected term (years)		5-10
Expected volatility		158%-265%
Expected dividends		0%

Warrant activity for the year ended September 30, 2017

In the year ending September 30, 2017, the Company issued 4,399,056 shares of common stock to two officers and a director for the cashless exercise of 4,500,000 options with a strike price of $0.83.

As of September 30, 2017, the Company expects to recognize $1,655,299 of stock-based compensation for the non-vested outstanding warrants over a weighted-average period of 3.33 years.