During February 2016, the Company issued 275,500 options to directors, employees and consultants. Among those shares, 125,500 shares were issued to employees and 150,000 shares were issued to non-employees, which are consultants. The right to exercise these options shall vest and become exercisable from February 23, 2016 to February 1, 2017. The vesting date varies for each option agreements. The options have exercise prices ranging from $0.30-$0.80 per share and will expire ten years from the grant date, unless terminated earlier as provided by the option agreements.

During April 2016, the Company agreed to extend an employee's previously issued stock options of 22,500 until April 29, 2016. In April 2016, this employee exercised 5,000 shares of their stock options at $0.30 per share. The remaining shares of their stock options expired by the end of April 2016.

During July 2016, the Company issued 320,000 options to an employee. The right to exercise these options shall vest and become exercisable on December 31, 2021. The exercise price is $0.88 per share and will expire ten years from the grant date, unless terminated earlier as provided by the option agreements.

During January 2017, the Company issued 84,000 options to employees. The right to exercise these options shall vest and become exercisable on January 2018. The exercise price is $0.40-$0.51 per share and will expire ten years from the grant date, unless terminated earlier as provided by the option agreements.

During July 2017, the Company issued 2,170,000 options to employees and 430,000 options to non-employees. The right to exercise these options shall vest and become exercisable on January 2018. The exercise price is $0.51-$0.56 per share and will expire ten years from the grant date, unless terminated earlier as provided by the option agreements.

The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as follows: expected volatility was based on a representative peer group of small public companies in their industry segment as the Company has a limited stock history. The expected term of options granted was determined using the simplified method under SAB 107 and represents the mid-point between the vesting term and the contractual term. The risk-free rate is calculated using the U.S. Treasury yield curve, and is based on the expected term of the option.

The Black-Scholes option pricing model was used with the following weighted average assumptions for options granted during the twelve months ended September 30, 2017 and 2016, respectively:

For employees	September 30, 2017				September 30, 2016
Risk-free interest rate			1.64% - 1.75	%			1.11% - 1.43	%
Expected option life	5.5 - 6.5 years				4.5 years
Expected volatility			97.6% - 99.1	%			80.2% - 83.6	%%
Expected dividend yield			0.00	%			0.00	%
Exercise price		$	0.40 - $0.56			$	0.30 - $0.88

For non-employees	September 30, 2017				September 30, 2016
Risk-free interest rate			2.27	%			1.74	%
Expected option life	10 years				10 years
Expected volatility			115.70	%			104.70	%
Expected dividend yield			0.00	%			0.00	%
Exercise price		$	0.51 - $0.56			$	0.30 - $0.60

The Company is expensing these stock option awards on a straight-line basis over the requisite service period. The Company recognized stock option expense of $138,098 for the year ended September 30, 2017. Unamortized option expense as of September 30, 2017, for all options outstanding amounted to approximately $993,358. These costs are expected to be recognized over a weighted-average period of 3 years. The Company recognized stock option expenses of $37,253 for the year ended September 30, 2016, which relates to vesting of options that were granted in 2015.

A summary of the status of the Company's unvested shares as of September 30, 2017 and 2016, are presented below:

Nonvested options
	Number of
	Nonvested Shares
Nonvested shares at September 30, 2015		-
Granted		618,000
Exercised		(5,000	)
Forfeited		(40,000	)
Vested		(195,000	)
Nonvested shares at September 30, 2016		378,000
Granted		2,684,000
Exercised		-
Forfeited		(120,000	)
Vested		(58,000	)
Nonvested shares at September 30, 2017		2,884,000