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Commitments
 9 Months Ended
Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments
Note 9 Commitments

 

  a) Share Purchase Warrants

 

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

 

    Number of Shares     Weighted
Average
 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     (2,463,581 )   $ 1.67  
Balance, June 30, 2016     1,809,309     $ 2.70  

 

During the nine months ended June 30, 2016, the Company issued 1,979,246 shares of common stock pursuant to the exercise of 2,421,894 share purchase warrants on a cashless basis.

 

At June 30, 2016, the Company has 1,809,309 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
  26,250     $ 1.00     May 31, 2019
  1,809,309              

 

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.

 

During the years ended September 30, 2015 and 2014, the Company issued an aggregate of 57,500 warrants exercisable at a weighted average exercise price of $1.24 per share for a period of 4.58 years from the date of issuance in exchange for consulting services to be rendered. The weighted average grant date fair value of these warrants at issuance was $0.899 per warrant, based on the Black-Scholes option pricing model using the following weighted average assumptions: expected term 4.44 years, expected volatility 108.43%, expected dividend yield 0.00%, risk free interest rate 1.21%. Stock based compensation is being recorded in the financial statements over the vesting term of three years from the date of grant. During the three and nine months ended June 30, 2016, the Company recorded $25,924 and $70,391, respectively (June 30, 2015: $11,283 and $17,167, respectively), in connection with these warrants granted.

 

  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 nine months ended June 30, 2016 and for the year ended September 30, 2015 is presented below:

 

    Number
of Shares		     Weighted
Average
Exercise Price		     Weighted Average
Grant Date fair
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     113,750     $ 5.68     $ 4.72  
Expired     (25,000 )   $ 14.68          
Outstanding at June 30, 2016     1,911,250     $ 2.05          
Exercisable at June 30, 2016     1,244,817     $ 1.66          
Exercisable at September 30, 2015     825,002     $ 1.78          

 

At June 30, 2016, the following stock options were outstanding:

 

Number of Shares               Aggregate     Remaining  
    Number     Exercise         Intrinsic     Contractual  
Total   Vested     Price     Expiry Date   Value     Life (yrs)  
500,000     500,000     $ 1.60     July 5, 2023     2,255,000       7.01  
75,000     50,000     $ 1.20     May 7, 2024     368,250       7.85  
125,000     62,500     $ 1.32     May 8, 2024     598,750       7.85  
718,750     479,170     $ 0.92     April 2, 2025     3,730,313       8.76  
50,000     16,667     $ 1.44     June 8, 2025     233,500       8.94  
50,000     16,667     $ 1.68     June 15, 2025     217,500       8.96  
278,750     92,917     $ 5.04     September 18, 2025     298,263       9.22  
1,500     1,500     $ 5.64     September 30, 2025     705       9.25  
31,250     7,813     $ 5.68     October 2, 2025     13,438       9.26  
25,000     6,250     $ 8.98     October 16, 2025     -       9.30  
1,500     1,500     $ 5.57     December 31, 2025     810       9.50  
1,500     -     $ 4.90     March 31, 2026     1,815       9.75  
1,500     1,500     $ 5.66     April 27, 2026     2,160       9.82  
50,000     8,333     $ 4.09     May 18, 2026     101,000       9.88  
1,500     -     $ 6.11     June 30, 2026     -       10.00  
1,911,250     1,244,817                 $ 7,821,503          

 

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 June 30, 2016.

 

The Company recognized stock based compensation expense of $230,239 and $596,576 during the three and nine months ended June 30, 2016, respectively (June 30, 2015: $228,486 and $255,951, respectively) in connection with the issuance and vesting of stock options in exchange for services. These amounts have been included in general and administrative expenses on the Company’s statement of operations. An amount of $1,689,865 in stock based compensation is expected to be recorded over the remaining term of such options.

 

The fair value of each option award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions:

 

    June 30,  
    2016     2015  
Risk-free interest rate     1.67 %     1.53 % 
Expected life of options (years)     6.63       6.03  
Annualized volatility     105.21 %     97.86 %
Dividend rate     0.00 %     0.00 %