On October 29, 2019, the Company granted to directors and management stock options to acquire an aggregate of 2,450,000 common shares of the Company’s common stock. The options vested immediately and are exercisable at a price of $0.08 per common share for a period of five years from the date of the grant. Also, in connection with his appointment to the Board of Directors, Mr. Matlack was granted 100,000 options to acquire shares of the Company’s common stock. The options have an exercise price of $0.08 per share, vested immediately, and have a term of five years.

The fair value of the option awards granted during the quarter ended December 31, 2019 was $161,100, measured on the date of the grant with a Black-Scholes option-pricing model using the assumptions noted in the following table:

	Options Granted During the Quarter Ended December 31, 2019
Expected volatility	149.5%
Stock price on date of the note	$0.07
Exercise price	$0.08
Expected dividends	-
Expected term (in years)	5
Risk-free rate	1.66%
Expected forfeiture rate	0%

During the quarter ended December 31, 2018, the Board of Directors issued 100,000 stock options to the Chief Financial Officer. The fair value of the option award was $5,000 and measured on the date of the grant with a Black-Scholes option-pricing model.

During the quarter ended December 31, 2018, 100,000 options were terminated as a result of the resignation of a member of the Board of Directors.

The following is a summary of options issued and outstanding at December 31, 2019:

		Options		Weighted Average Exercise Price
Outstanding at September 30, 2018			3,280,000	$	0.26
Granted			100,000		0.10
Terminated			(100,000)		(0.10)
Outstanding at September 30, 2019			3,280,000		0.26
	Granted		2,550,000		0.08
	Expired		(180,000)		(0.48)
Outstanding and exercisable at December 31, 2019			5,650,000	$	0.17

The aggregate of options exercisable as of December 31, 2019 had an intrinsic value of nil, based on the closing price of $0.07 per share of the Company’s common stock on December 31, 2019.