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Commitments and Contingencies | 9 Months Ended
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Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies |
Note 5 | Commitments and Contingencies
a) Leases During the three and nine months ended June 30, 2021, the Company incurred office lease expense of $18,994 and $117,284, respectively (2020: $58,554 and $169,469, respectively). b) Litigation The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s consolidated financial statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its consolidated financial statements. c) Share Purchase Warrants A summary of the status of the Company’s outstanding share purchase warrants is presented below:
| Schedule of exercisable share purchase warrants outstanding |  |  |  |  |  |  |  |  |
|  | Number of Shares |  | Weighted Average Exercise Price ($)
| Balance, September 30, 2019 |  |  |  | 350,000 |  |  |  | 4.19 |
| Granted |  |  |  | 150,000 |  |  |  | 3.17 |
| Balance, September 30, 2020 |  |  |  | 500,000 |  |  |  | 3.88 |
| Granted |  |  |  | 60,000 |  |  |  | 12.00 |
| Exercised |  |  |  | (350,000 | ) |  |  | 4.19 |
| Balance, June 30, 2021 |  |  |  | 210,000 |  |  |  | 5.69 |
At June 30, 2021, the Company had share purchase warrants outstanding as follows:
Schedule of share purchase warrants outstanding |  |  |  |
Number |  | Exercise Price |  | Expiry Date
| 150,000 |  |  | $ | 3.17 |  |  | May 6, 2024
| 60,000 |  |  | $ | 12.00 |  |  | April 21, 2026
| 210,000 |  |  |  |  |  |  |
d) Stock–based Compensation Plan 2015 Stock Option Plan On September 18, 2015, the Company’s Board of Directors (the “Board”) approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provided 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 was 6,050,553 shares, subject to adjustment in the event of a change of the Company’s capitalization. At June 30, 2021, 146,371 (September 30, 2020: 146,371) options remain available for issue under the 2015 Plan. 2019 Stock Option Plan On January 15, 2019, the Board approved the 2019 Omnibus Incentive Plan (the “2019 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees, consultants and advisors of the Company. Under the terms of the 2019 Plan, 6,000,000 additional shares of Common Stock are available for issuance under the 2019 Plan, in addition to the shares available under the 2015 Plan. Any awards outstanding under the 2015 Plan or the Company’s 2007 Stock Option Plan (the “2007 Plan”) will remain subject to and be paid under the 2015 Plan or the 2007 Plan, respectively, and any shares subject to outstanding awards under the 2015 Plan or the 2007 Plan that subsequently cease to be subject to such awards (other than by reason of settlement of the awards in shares) will automatically become available for issuance under the 2019 Plan. The 2019 Plan provides that it may be administered by the Board, or the Board may delegate such responsibility to a committee. The exercise price will be determined by the Board at the time of grant shall be at least equal to the fair market value on such date. If the grantee is a 10% stockholder on the grant date, then the exercise price shall not 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 2019 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 2019 Plan. At June 30, 2021, 1,706,665 (September 30, 2020: 3,161,665) options remain available for issue under the 2019 Plan. A summary of the status of Company’s outstanding stock options is presented below:
| Schedule of outstanding stock purchase options |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Number of Shares |  | Weighted Average Exercise Price ($) |  | Weighted Average Grant Date Fair Value ($) |  | Aggregate intrinsic value ($)
| Outstanding, September 30, 2019 |  |  |  | 8,462,933 |  |  |  | 3.58 |  |  |  |  |  |  | 4,115,032
| Granted |  |  |  | 1,695,000 |  |  |  | 2.96 |  |  |  | 2.27 |  |  |
| Forfeited |  |  |  | (68,332 | ) |  |  | 3.01 |  |  |  |  |  |  |
| Exercised |  |  |  | (13,335 | ) |  |  | 3.15 |  |  |  |  |  |  |
| Outstanding, September 30, 2020 |  |  |  | 10,076,266 |  |  |  | 3.48 |  |  |  |  |  |  | 14,982,581
| Granted |  |  |  | 1,455,000 |  |  |  | 6.59 |  |  |  | 5.02 |  |  |
| Forfeited |  |  |  | (29,167 | ) |  |  | 1.44 |  |  |  |  |  |  |
| Exercised |  |  |  | (652,897 | ) |  |  | 2.86 |  |  |  |  |  |  |
| Outstanding, June 30, 2021 |  |  |  | 10,849,202 |  |  |  | 3.94 |  |  |  |  |  |  | 205,309,996
| Exercisable, June 30, 2021 |  |  |  | 7,930,452 |  |  |  | 3.64 |  |  |  |  |  |  | 152,413,269
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, 2021. During the three and nine months ended June 30, 2021, the Company recognized stock-based compensation expense of $2,293,925 and $5,079,395, respectively (2020: $1,251,129 and $4,216,306, respectively) in connection with the issuance and vesting of stock options and warrants in exchange for services. These amounts have been included in general and administrative expenses and research and development expenses on the Company’s statements of operations as follows:
Schedule of general and administrative expenses and research and development expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended June 30, |  | Nine months ended June 30,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
General and administrative |  | $ | 1,048,606 |  |  | $ | 575,451 |  |  | $ | 2,265,387 |  |  | $ | 1,863,869 |
Research and development |  | $ | 1,245,319 |  |  | $ | 675,678 |  |  | $ | 2,814,008 |  |  | $ | 2,352,437 |
Total share based compensation |  | $ | 2,293,925 |  |  | $ | 1,251,129 |  |  | $ | 5,079,395 |  |  | $ | 4,216,306 |
An amount of approximately $6,664,000 in stock-based compensation is expected to be recorded over the remaining term of such options through fiscal 2024. The fair value of each option award granted during the nine months ended June 30, 2021 and 2020 is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions:
Schedule of weighted average assumptions for fair value of each option award |  |  |  |
|  | 2021 |  | 2020
Risk-free interest rate |  |  | 0.71 | % |  |  | 1.57 | %
Expected life of options (years) |  |  | 5.66 |  |  |  | 5.53 |
Annualized volatility |  |  | 95.87 | % |  |  | 97.80 | %
Dividend rate |  |  | 0.00 | % |  |  | 0.00 | %

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- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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