On June 18, 2014, the Company’s Board of Directors authorized and approved the adoption of the 2014 Plan (“2014 Plan”), under which an aggregate of 12,108,016 shares of common stock may be issued. Pursuant to the terms of the 2014 Plan, the Company is authorized to grant stock options, as well as awards of stock appreciation rights, restricted stock, unrestricted shares, restricted stock units and deferred stock units. These awards may be granted to directors, officers, employees and eligible consultants. Vesting and the term of an option is determined at the discretion of the Board of Directors of the Company.

On August 8, 2016, the Company’s Board of Directors authorized and approved the adoption of the 2016 Plan (“2016 Plan”), under which an aggregate of 15,000,000 shares of common stock may be issued. Pursuant to the terms of the 2016 Plan, the Company is authorized to grant stock options, as well as awards of stock appreciation rights, restricted stock, unrestricted shares, restricted stock units, stock equivalent units and performance based cash awards. These awards may be granted to directors, officers, employees and eligible consultants. Vesting and the term of an option is determined at the discretion of the Board of Directors of the Company. At September 30, 2016, there were an aggregate of 17,468,376 common shares remaining available for grant under the 2014 and 2016 Plans.

The following is a summary of stock option activity for the six months ended September 30, 2016:

		Options
		Outstanding
		Remaining				Grant Date	Number of
Number of		Contractual Life		Exercise		Fair Value	Options
Options	Expiry Date	(years)		Price (CAD$)		(CAD$)	Exercisable

3,310,000	June 18, 2019	2.72	$	0.60	$	0.26	3,310,000
100,000	July 14, 2017	0.79	$	2.52	$	1.05	100,000
450,000	December 8, 2019	3.19	$	2.92	$	1.65	450,000
100,000	December 8, 2019	3.19	$	2.92	$	1.31	66,667
400,000	December 8, 2019	3.19	$	2.96	$	1.29	400,000
100,000	March 16, 2020	3.46	$	3.20	$	1.42	66,667
50,000	August 15, 2020	3.87	$	0.98	$	0.39	33,334
750,000	October 21, 2020	4.06	$	0.87	$	0.36	187,500
550,000	October 28, 2020	4.08	$	0.84	$	0.44	550,000
400,000	October 28, 2020	4.08	$	0.84	$	0.36	120,000
100,000	December 31, 2020	4.25	$	1.24	$	0.50	33,334
3,025,000	July 13, 2020	3.79	$	1.39	$	0.65	1,008,333
9,335,000							6,325,835

Included in the table above are non-employee awards that are subject to re-measurement each reporting period until vested. As a result, the grant date fair value is not representative of the total expense that will be recorded for these awards. As of September 30, 2016, the unrecognized compensation cost related to non-vested stock options outstanding, was $1,446,647 to be recognized over a weighted-average remaining vesting period of approximately 1.81 years. The Company recognizes compensation expense for only the portion of awards that are expected to vest. For the six months ended September 30, 2016 and 2015, the Company applied an expected forfeiture rate of 0% based on its historical experience.

In accordance with the guidance of ASC 815-40-15, stock options awarded to non-employees that are performing services for Neuro are required to be accounted for as derivative liabilities once the services have been performed and the options have vested because they are considered not to be indexed to the Company’s stock due to their exercise price being denominated in a currency other than Neuro’s functional currency. Stock options awarded to non-employees that are not vested are re-measured at their respective fair values at each reporting period and accounted for as equity awards until the terms associated with their vesting requirements have been met. The changes in fair value of the unvested non-employee awards are reflected in their respective operating expense classification in the Company’s consolidated statements of operations and comprehensive income (loss).

The non-employee stock options that are required to be accounted for as liabilities are summarized as follows for the six months ended September 30, 2016 and 2015:

	Six Months Ended September 30, 2016 $	Six Months Ended September 30, 2015 $
Fair value of non-employee options, beginning of the period	521,179	1,581,444
Reallocation of vested non-employee options	268,135	690,885
Change in fair value of non-employee stock options during the period	185,159	( 1,910,420)

Fair value of non-employee options, end of the period	974,473	361,909

The non-employee options that have vested are required to be re-valued with the change in fair value of the liability recorded as a gain or loss on the change of fair value of derivative liability and included in other items in the Company’s consolidated statements of operations and comprehensive income (loss) at the end of each reporting period. The fair value of the options will continue to be classified as a liability until such time as they are exercised, expire or there is an amendment to the respective agreements that renders these financial instruments to be no longer classified as a liability.

The fair value of non-employee liability classified awards at September 30, 2016 and 2015 was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

	September 30, 2016	September 30, 2015
Stock price	$1.38 CAD	$0.84 CAD
Exercise price	$1.23 CAD	$1.52 CAD
Expected life	2.84 years	3.73 years
Expected volatility	70.52%	67.85%
Risk-free interest rate	0.51%	0.68%
Dividend rate	0.00%	0.00%

Share-based payments are classified in the Company’s statements of operations and comprehensive income (loss) as follows for the six months ended September 30, 2016 and 2015:

	Six Months Ended September 30, 2016 $	Six Months Ended September 30, 2015 $
General and administrative	817,359	357,999
Research and development	106,932	( 107,584)

Total	924,291	250,415