Note 10 – Stock Options and Warrants

The following table presents the activity of stock options for the year ended June 30, 2019 as follows:


		Weighted		Weighted
		Average		Average
		Exercise		Remaining	Aggregate
	Number of	Price		Contractual	Intrinsic
Stock Options	Shares	per share ($)		Term (years)	Value ($)
Outstanding at June 30, 2018	—		—	—		—
Granted	300,000		.50	—		—
Exercised	—		—	—		—
Forfeited	200,000		.50	—		—
Canceled	—		—	—		—
Outstanding and exercisable at June 30, 2019	100,000	$	.50	2.16		—

There were no options outstanding and exercisable at June 30, 2018 and 2017.

Of the above options, 100,000 became vested and exercisable on September 1, 2018. The options expire on August 31, 2021. On January 24, 2019, Dr. Taraporewala resigned as the Chief Operating Officer of the Company and the 200,000 remaining unvested options were forfeited. See Note 13.

The Company estimated the fair value of the options granted to Dr. Taraporewala on the date of the grant using a lattice model that values the options based upon a stock price modeled such that is follows a geometric Brownian motion with constant drift and volatility.

For the year ended June 30, 2019, the Company recognized compensation expense of $11,920 related to 100,000 vested options granted to Dr. Taraporewala. For the years ended June 30, 2018 and 2017, there was no compensation expense recorded. As of June 30, 2019, there was no unrecognized compensation cost.


		Weighted		Weighted
		Average		Average
		Exercise		Remaining	Aggregate
	Number of	Price		Contractual	Intrinsic
Stock Warrants	Shares	per share ($)		Term (years)	Value ($)
Outstanding and exercisable at June 30, 2016	6,616,700	$	4.96	2.55	$	4,459

Granted	57,160		1.71	—		—
Exercised	—		—	—		—
Expired	—		—	—		—
Canceled	—		—	—		—
Outstanding and exercisable at June 30, 2017	6,673,860	$	4.93	1.36	$	—

Granted	295,728		1.87	—		—
Exercised	—		—	—		—
Expired	—		—	—		—
Canceled	—		—	—		—
Outstanding and exercisable at June 30, 2018	6,969,588	$	4.80	.53	$	—

Granted	6,990,174		.61	—		—
Exercised	—		—	—		—
Expired	5,996,649		5.08	—		—
Canceled	—		—	—		—
Outstanding and exercisable at June 30, 2019	7,963,113	$	.91	4.69	$	—

Of the above warrants; 620,051 expire in fiscal year ending June 30, 2020; 57,160 expire in fiscal year ending June 30, 2021; 45,728 expire in fiscal year ending June 30, 2022; 295,728 expire in fiscal year ending June 30, 2023; and 6,944,446 expire in fiscal year ending June 30, 2025.