XML 23 R12.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies

3 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 6 Commitments and Contingencies

a)

Leases

During the three months ended December 31, 2021, the Company incurred office lease expense of $4,845 (2020: $68,387).

b)

Employee 401(k) Benefit Plan

The Company has a defined-contribution savings plan under Section 401(k) of the Internal Revenue Code. The plan covers all United States based employees. United States based employees eligible to participate in the plan may contribute up to the current statutory limits under the Internal Revenue Service regulations. The 401(k) plan permits the Company to make additional matching contributions on behalf of contributing employees. During the three months ended December 31, 2021, the Company made $22,682 (2020: $16,556) in matching contributions under the 401(k) plan.

c)

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.

d) Share Purchase Warrants

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


						Weighted
		Number of				Average Exercise
		Shares				Price ($)
Balance, September 30, 2020			500,000				3.88
Granted			60,000				12.00
Exercised			(350,000	)			4.19
Balance, September 30, 2021			210,000				5.69
Forfeited			(50,000	)			12.00
Balance, December 31, 2021			160,000				3.72

At December 31, 2021, the Company had share purchase warrants outstanding as follows:


Number				Exercise Price				Expiry Date
	150,000			$	3.17			May 6, 2024
	10,000			$	12.00			April 21, 2026
	160,000

e)

Stock–based Compensation Plan

2015 Stock Option Plan

On September 18, 2015, the Company’s 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 December 31, 2021, 146,371 (September 30, 2021: 146,371) options remain available for issue under the 2015 Plan.

e)

Stock-based Compensation Plan – (Continued)

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 December 31, 2021, 406,332 (September 30, 2021: 456,332) options remain available for issue under the 2019 Plan.

A summary of the status of Company’s outstanding stock options is presented below:


						Weighted				Weighted
						Average				Average Grant				Aggregate
		Number of				Exercise Price				Date Fair				intrinsic value
		Shares				($)				Value ($)				($)
Outstanding, September 30, 2020			10,076,266				3.48								14,982,581
Granted			2,732,000				12.55				9.32
Forfeited			(55,834	)			3.04				2.43
Exercised			(1,421,529	)			2.89				2.43				24,446,305
Outstanding, September 30, 2021			11,330,903				5.74								140,132,451
Granted			50,000				19.64				15.52
Exercised			(137,134	)			2.72				2.12				2,276,948
Outstanding, December 31, 2021			11,243,769				5.84								132,001,363
Exercisable, December 31, 2021			8,294,684				3.75								112,870,598

e)

Stock-based Compensation Plan – (Continued)

The following summarizes information about stock options at December 31, 2021 by a range of exercise prices:


												Weighted
												average				Weighted								Weighted
Range of exercise								Number of				remaining				average								average
prices								outstanding				contractual				exercise				Number of				exercise
From				To				options				life (in years)				price				vested options				price
$	0.92			$	2.96				4,172,215				5.94				2.29				4,049,714				2.29
$	3.15			$	4.80				2,117,500				6.08				3.30				1,837,500				3.29
$	5.04			$	8.98				3,397,054				6.20				6.05				2,347,054				6.30
$	12.00			$	13.01				230,000				9.27				12.44				39,166				12.38
$	17.03			$	24.58				1,327,000				9.58				19.35				21,250				24.24
									11,243,769												8,294,684

The weighted average grant date fair value of options vested during the three months ended December 31, 2021 was $2.85 (2020: $2.40). At December 31, 2021, the weighted average contractual life of options outstanding was 6.54 years (September 30, 2021: 6.79 years) and for options exercisable was 5.31 years (September 30, 2021: 5.51 years).

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, 2021.

During the three months ended December 31, 2021, the Company recognized stock-based compensation expense of $3,908,771 (2020: $939,314) 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 statement of operations as follows:


		2021				2020
General and administrative		$	1,671,726			$	422,823
Research and development			2,237,046				516,491
Total stock-based compensation		$	3,908,771			$	939,314

An amount of approximately $18,170,000 in stock-based compensation is expected to be recorded over the remaining term of such options through fiscal 2025.

e)

Stock-based Compensation Plan – (Continued)

The fair value of each option award granted during the three months ended December 31, 2021 and 2020 is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions:


		2021				2020
Risk-free interest rate			1.37	%			0.62	%
Expected life of options (years)			6.50				5.59
Annualized volatility			96.79	%			96.16	%
Dividend rate			0.00	%			0.00	%

The fair value of stock compensation charges recognized during the three months ended December 31, 2021 and 2020 was determined with reference to the quoted market price of the Company’s shares on the grant date.