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Commitments

3 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments

Note 10

Commitments

a)

Share Purchase Warrants

A summary of the Company’s share purchase warrants outstanding is presented below:

						Weighted
						Average
		Number of Shares				Exercise Price
Balance, October 1, 2014			18,728,910			$	1.59
Expired			(62,500	)		$	1.40
Exercised			(15,468,520	)		$	1.43
Issued			1,075,000			$	0.76
Balance, September 30, 2015			4,272,890			$	2.11
Exercised			(2,444,831	)		$	1.68
Balance, December 31, 2015			1,828,059			$	2.68

During the three months ended December 31, 2015, the Company issued 1,963,956 shares of common stock pursuant to the exercise of 2,403,144 share purchase warrants on a cashless basis.

At December 31, 2015, the Company has 1,828,059 currently exercisable share purchase warrants outstanding as follows:

Number				Exercise Price				Expiry Date
	1,462,180			$	3.00			July 5, 2018
	30,000			$	4.00			February 24, 2019
	277,127			$	1.20			March 13, 2019
	1,252			$	1.68			March 13, 2019
	12,500			$	1.24			May 31, 2019
	45,000			$	1.00			July 31, 2019
	1,828,059

All of the warrants expiring on July 5, 2018 contain a contingent call provision whereby the Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Company’s common stock exceeds $6.00 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements.

b)

Stock–based Compensation Plan

2015 Stock Option Plan

On September 18, 2015, the Company’s board of directors approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees and consultants of the Company.

The maximum number of our common shares reserved for issue under the plan is 6,050,553 shares subject to adjustment in the event of a change of the Company’s capitalization. As a result of the adoption of the 2015 Plan, no further option awards will be granted under any previously existing stock option plan. Stock option awards previously granted under previously existing stock option plans remain outstanding in accordance with their terms.

The 2015 Plan is administered by the board of directors, except that it may, in its discretion, delegate such responsibility to a committee of such board. The exercise price will be determined by the board of directors at the time of grant but in no event will be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2015 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the board, subject to earlier termination in accordance with the terms of the 2015 Plan.

A summary of the status of Company’s outstanding stock purchase options for the three months ended December 31, 2015 and for the year ended September 30, 2015 is presented below:

						Weighted				Weighted Average
		Number of				Average				Grant Date fair
		Shares				Exercise Price				value
Outstanding at October 1, 2014			792,500			$	2.82
Forfeited			(67,500	)		$	12.00
Granted			1,097,500			$	2.02			$	1.66
Outstanding at September 30, 2015			1,822,500			$	2.00
Forfeited			-			$	-
Granted			34,250			$	5.67			$	5.67
Outstanding at December 31, 2015			1,856,750			$	2.07
Exercisable at December 31, 2015			843,107			$	1.80
Exercisable at September 30, 2015			825,002			$	1.78

At December 31, 2015, the following stock options were outstanding:

Number of Shares														Aggregate				Remaining
				Number				Exercise						Intrinsic				Contractual
Total				Vested				Price				Expiry Date		Value				Life (yrs)
	25,000	⁽¹⁾			25,000			$	14.68			March 30, 2016		$	-				0.25
	500,000	⁽²⁾			500,000			$	1.60			July 5, 2023			1,985,000				7.51
	75,000	⁽³⁾			25,000			$	1.20			May 7, 2024			327,750				8.35
	125,000	⁽⁴⁾			31,250			$	1.32			May 8, 2024			531,250				8.35
	718,750	⁽⁵⁾			239,585			$	0.92			April 2, 2025			3,342,188				9.25
	50,000	⁽⁶⁾			8,334			$	1.44			June 8, 2025			206,500				9.44
	50,000	⁽⁷⁾			8,334			$	1.68			June 15, 2025			194,500				9.46
	278,750	⁽⁸⁾			-			$	5.04			September 18, 2025			147,738				9.72
	1,500	⁽⁹⁾			1,500			$	5.64			September 30, 2025			-				9.75
	31,250	⁽¹⁰⁾			2,604			$	5.68			October 2, 2025			-				9.75
	1,500	⁽⁹⁾			1,500			$	5.47			December 31, 2025			150				10.00
	1,856,750				843,107									$	6,735,075

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at December 31, 2015.

⁽¹⁾

As of December 31, 2015 and September 30, 2015, these options had fully vested. These options were granted during the year ended September 30, 2011 and vested over a period of one year from the date of grant. The fair value of these options at issuance was calculated to be $267,000. The Company did not recognize any stock-based compensation during the three months ended December 31, 2015 (2014: $0).

⁽²⁾

As of December 31, 2015 and September 30, 2015 these options had fully vested. These options were granted during the year ended September 30, 2013 and vested immediately upon granting. The Company did not recognize any stock-based compensation during the three months ended December 31, 2015 (2014: $0) in connection with these options.

⁽³⁾

As of December 31, 2015 and September 30, 2015, 25,000 of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a three-year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $5,826 during the three months ended December 31, 2015 (2014: $5,830) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁴⁾

As of December 31, 2015 and September 30, 2015, 31,250 of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a four-year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $8,048 during the three months ended December 31, 2015 (2014: $8,053) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁵⁾

As of December 31, 2015, 239,585 of these options had vested (September 30, 2015: 239,585 of these options had vested). These options were issued during the year ended September 30, 2015 and vest in three equal installments on April 2, 2015, April 2, 2016 and April 2, 2017. The Company recognized stock based compensation expense of $43,282 during the three months ended December 31, 2015 (2014: $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁶⁾

As of December 31, 2015, 8,334 of these options had vested. These options were issued during the year ended September 30, 2015 and vest quarterly over a three-year period commencing on September 8, 2015. The Company recognized stock based compensation expense of $4,828 during the three months ended December 31, 2015 (2014: $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁷⁾

As of December 31, 2015 and September 30, 2015, 8,334 of these options had vested. These options were issued during the year ended September 30, 2015 and vest over a three-year period from the date of grant. The Company recognized stock based compensation expense of $5,634 during the three months ended December 31, 2015 (2014: $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁸⁾

As of December 31, 2015 and September 30, 2015, none of these options had vested. These options were issued during the year ended September 30, 2015 and vest over a three-year period from the date of grant. The Company recognized stock based compensation expense of $99,149 during the three months ended December 31, 2015 (2014: $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁹⁾

As of December 31, 2015, all of these options had vested. These options were issued during the three months ended December 31, 2015 and vested on December 31, 2015. The Company recognized stock based compensation expense of $13,600 during the three months ended December 31, 2015 (2014: $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽¹⁰⁾

As of December 31, 2015, 2,604 of these options had vested. These options were issued during the three months ended December 31, 2015 and vest in equal quarterly instalments over a three-year period from the date of grant. The Company recognized stock based compensation expense of $11,993 during the three months ended December 31, 2015 (2014: $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.