During the year ended September 30, 2015, the Company’s Board of Directors adopted and the Company’s stockholders approved the adoption of the Company’s 2015 Stock and Incentive Plan. This plan replaced the Company’s 2005 Equity Incentive Plan, as amended. The aggregate number of shares that may be issued to employees, directors, and consultants under all stock-based awards made under the 2015 Stock and Incentive Plan was 4 million shares of the Company’s common stock.

Upon exercise of options or other awards, shares are issued from the available authorized shares of the Company. Option awards are granted with an exercise price equal to the fair value of the Company’s stock at the date of grant.

During the year ended September 30, 2019, the Company’s shareholders approved and the Company’s Board of Directors adopted of the Company’s 2018 Stock and Incentive Plan. This plan replaced the Company’s 2015 Equity Incentive Plan. The aggregate number of shares that may be issued to employees, directors, and consultants under all stock-based awards made under the 2018 Stock and Incentive Plan is 8 million shares of the Company’s common stock. Upon exercise of options or other awards, shares are issued from the available authorized shares of the Company. Option awards are granted with an exercise price equal to the fair value of the Company’s stock at the date of grant.

During the year ended September 30, 2019, the Board of Directors agreed to issue 100,000 stock options to the Chief Financial Officer. The fair value of the option awards granted was $5,000 and measured on the date of the issuance with a Black-Scholes option-pricing model using the assumptions noted in the following table:

	Options Granted During the Year Ended September 30, 2019	Options Granted During the Year Ended September 30, 2018
Expected volatility	137.4%	121.6% - 134.8%
Stock price on date of grant	$ 0.06	$ 0.10 - $0.17
Exercise price	$ 0.10	$ 0.08 - $0.12
Expected dividends	-	-
Expected term (in years)	5	5
Risk-free rate	2.46%	2.33% - 2.69%
Expected forfeiture rate	0%	0%

During the year ended September 30, 2019, 100,000 options were terminated as a result of the resignation of a member of the Board of Directors. Options forfeited or expired are returned to the option pool and are available for grant. The Company considers forfeitures in connection with its estimate of expected option term.

Total compensation expense recognized for option awards was $5,000 and $231,000 for the years ended September 30, 2019 and 2018, respectively. The cost of options granted to employees is recorded as salaries and benefits, and the cost of options granted to directors and consultants is recorded as other general and administrative expenses. The total compensation cost of options vested under the plan, charged against operations, is included in the consolidated statements of operations as follows:

		Fiscal year ended September 30,
		2019		2018
Salaries and benefits	$	-	$	120,000
Other general and administrative expenses		5,000		111,000
Total	$	5,000	$	231,000

The following is a summary of the Company’s options issued under the Amended 2005 Equity Incentive Plan, the 2015 Stock and Incentive Plan and the 2018 Stock and Incentive Plan:

		Options		Weighted Average Exercise Price
Outstanding at September 30, 2017			2,233,334	$	0.41
Granted			1,900,000		0.16
Expired			(853,334)		(0.43)
Outstanding at September 30, 2018			3,280,000		0.26
	Granted		100,000		0.10
	Terminated		(100,000)		(0.10)
Outstanding and exercisable at September 30, 2019			3,280,000	$	0.26

Weighted average fair value of options granted during the fiscal year ended September 30, 2019				$	0.10
Average remaining contractual term of options outstanding and exercisable at September 30, 2019 (years)					3.05
Intrinsic value of options outstanding and exercisable at September 30, 2019				$	0.00