Commitments

6 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments

Note 10 Commitments

a) Share Purchase Warrants

A summary of the Company’s share purchase warrants outstanding is presented below:

				Weighted
				Average
	Number of Shares			Exercise Price
Balance, October 1, 2014		18,728,910		$	1.59
Expired		(62,500	)	$	1.40
Exercised		(15,468,520	)	$	1.43
Issued		1,075,000		$	0.76
Balance, September 30, 2015		4,272,890		$	2.11
Exercised		(2,444,831	)	$	1.68
Balance, March 31, 2016		1,828,059		$	2.68

During the six months ended March 31, 2016, the Company issued 1,963,956 shares of common stock pursuant to the exercise of 2,403,144 share purchase warrants on a cashless basis.

At March 31, 2016, the Company has 1,828,059 currently exercisable share purchase warrants outstanding as follows:

Number		Exercise Price		Expiry Date
	1,462,180	$	3.00	July 5, 2018
	30,000	$	4.00	February 24, 2019
	277,127	$	1.20	March 13, 2019
	1,252	$	1.68	March 13, 2019
	12,500	$	1.24	May 31, 2019
	45,000	$	1.00	July 31, 2019
	1,828,059

All of the warrants expiring on July 5, 2018 contain a contingent call provision whereby the Company may have the option to call for cancellation of all or any portion of the warrants for consideration equal to $0.001 per share, provided the quoted market price of the Company’s common stock exceeds $6.00 for a period of twenty consecutive trading days, subject to certain minimum volume restrictions and other restrictions as provided in the warrant agreements.

During the years ended September 30, 2015 and 2014, the Company issued an aggregate of 57,500 warrants exercisable at a weighted average exercise price of $1.24 per share for a period of 4.58 years from the date of issuance in exchange for consulting services to be rendered. The weighted average grant date fair value of these warrants at issuance was $0.899 per warrant, based on the Black-Scholes option pricing model using the following weighted average assumptions: expected term 4.44 years, expected volatility 108.43%, expected dividend yield 0.00%, risk free interest rate 1.21%. Stock based compensation is being recorded in the financial statements over the vesting term of three years from the date of grant. During the three and six months ended March 31, 2016, the Company recorded $23,570 and $47,230, respectively (March 31, 2015: $2,378 and $3,634, respectively), in connection with the warrants granted.

b) Stock–based Compensation Plan

2015 Stock Option Plan

On September 18, 2015, the Company’s board of directors approved a 2015 Omnibus Incentive Plan (the “2015 Plan”), which provides for the grant of stock options and restricted stock awards to directors, officers, employees and consultants of the Company.

The maximum number of our common shares reserved for issue under the plan is 6,050,553 shares subject to adjustment in the event of a change of the Company’s capitalization. As a result of the adoption of the 2015 Plan, no further option awards will be granted under any previously existing stock option plan. Stock option awards previously granted under previously existing stock option plans remain outstanding in accordance with their terms.

The 2015 Plan is administered by the board of directors, except that it may, in its discretion, delegate such responsibility to a committee of such board. The exercise price will be determined by the board of directors at the time of grant but in no event will be less than 110% of fair market value of the Company’s shares of common stock on the grant date. Stock options may be granted under the 2015 Plan for an exercise period of up to ten years from the date of grant of the option or such lesser periods as may be determined by the board, subject to earlier termination in accordance with the terms of the 2015 Plan.

A summary of the status of Company’s outstanding stock purchase options for the six months ended March 31, 2016 and for the year ended September 30, 2015 is presented below:

				Weighted		Weighted Average
	Number of			Average		Grant Date fair
	Shares			Exercise Price		value
Outstanding at October 1, 2014		792,500		$	2.82
Forfeited		(67,500	)	$	12.00
Granted		1,097,500		$	2.02	$	1.66
Outstanding at September 30, 2015		1,822,500		$	2.00
Forfeited		-		$	-
Granted		60,750		$	7.02	$	5.75
Expired		(25,000	)	$	14.68
Outstanding at March 31, 2016		1,858,250		$	1.99
Exercisable at March 31, 2016		890,399		$	1.73
Exercisable at September 30, 2015		825,002		$	1.78

b) Stock–based Compensation Plan – (cont’d)

At March 31, 2016, the following stock options were outstanding:

Number of Shares								Aggregate		Remaining
			Number		Exercise			Intrinsic		Contractual
Total			Vested		Price		Expiry Date	Value		Life (yrs)
	500,000	(1)		500,000	$	1.60	July 5, 2023		1,650,000		7.26
	75,000	(2)		25,000	$	1.20	May 7, 2024		277,500		8.10
	125,000	(3)		31,250	$	1.32	May 8, 2024		447,500		8.10
	718,750	(4)		239,585	$	0.92	April 2, 2025		2,860,625		9.00
	50,000	(5)		12,500	$	1.44	June 8, 2025		173,000		9.19
	50,000	(6)		-	$	1.68	June 15, 2025		161,000		9.21
	278,750	(7)		69,688	$	5.04	September 18, 2025		-		9.47
	1,500	(8)		1,500	$	5.64	September 30, 2025		-		9.50
	31,250	(9)		5,209	$	5.68	October 2, 2025		-		9.51
	25,000	(10)		4,167	$	8.98	October 16, 2025		-		9.54
	1,500	(11)		1,500	$	5.57	December 31, 2025		-		9.75
	1,500	(12)		-	$	4.90	March 31, 2026		-		10.00
	1,858,250			890,399				$	5,569,625

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted market price of the Company’s stock for the options that were in-the-money at March 31, 2016.

⁽¹⁾ As of March 31, 2016 and September 30, 2015 these options had fully vested. These options were granted during the year ended September 30, 2013 and vested immediately upon granting. The Company did not recognize any stock-based compensation during the six months ended March 31, 2016 (March 31, 2015: $0) in connection with these options.

⁽²⁾ As of March 31, 2016 and September 30, 2015, 25,000 of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a three-year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $5,764 and $11,590 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $5,830 and $11,660, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

b) Stock–based Compensation Plan – (cont’d)

⁽³⁾ As of March 31, 2016 and September 30, 2015, 31,250 of these options had vested. These options were issued during the year ended September 30, 2014 and vest annually over a four-year period commencing on the first anniversary of the date of the grant. The Company recognized stock based compensation expense of $7,960 and $16,008 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $8,053 and $16,106, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁴⁾ As of March 31, 2016, 239,585 of these options had vested (September 30, 2015: 239,585 of these options had vested). These options were issued during the year ended September 30, 2015 and vest in three equal installments on April 2, 2015, April 2, 2016 and April 2, 2017. The Company recognized stock based compensation expense of $42,811 and $86,093 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁵⁾ As of March 31, 2016, 12,500 of these options had vested. These options were issued during the year ended September 30, 2015 and vest quarterly over a three-year period commencing on September 8, 2015. The Company recognized stock based compensation expense of $4,775 and $9,603 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁶⁾ As of March 31, 2016 and September 30, 2015, none of these options had vested. These options were issued during the year ended September 30, 2015 and vest over a three-year period from the date of grant. The Company recognized stock based compensation expense of $5,573 and $11,207 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁷⁾ As of March 31, 2016 and September 30, 2015, 69,688 of these options had vested. These options were issued during the year ended September 30, 2015 and vest over a three-year period from the date of grant. The Company recognized stock based compensation expense of $92,875 and $192,024 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁸⁾ As of March 31, 2016, all of these options had vested. These options vested on December 31, 2015. The Company recognized stock based compensation expense of $0 and $6,800 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽⁹⁾ As of March 31, 2016, 5,209 of these options had vested. These options were issued during the six months ended March 31, 2016 and vest in equal quarterly instalments over a three-year period from the date of grant. The Company recognized stock based compensation expense of $11,456 and $23,449 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

b) Stock–based Compensation Plan – (cont’d)

⁽¹⁰⁾ As of March 31, 2016, 4,167 of these options had vested. These options were issued during the six months ended March 31, 2016 and vest in equal quarterly instalments over a three-year period from the date of grant. The Company recognized stock based compensation expense of $27,906 and $27,906 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0, respectively) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽¹¹⁾ As of March 31, 2016, all of these options had vested. These options were issued during the six months ended March 31, 2016 and vested on December 31, 2015. The Company recognized stock based compensation expense of $0 and $6,800 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

⁽¹²⁾ As of March 31, 2016, none of these options had vested. These options were issued during the six months ended March 31, 2016 and vest on December 31, 2016. The Company recognized stock based compensation expense of $0 and $0 during the three and six months ended March 31, 2016, respectively (March 31, 2015: $0 and $0) in connection with these options. These amounts have been included in general and administrative expenses on the Company’s statement of operations.

The fair value of each option award is estimated on the date of grant using the Black Scholes option pricing model based on the following weighted average assumptions:

	March 31,
	2016			2015
Risk-free interest rate		1.68	%		-
Expected life of options (years)		6.76			-
Annualized volatility		101.92	%		-
Dividend rate		0.00	%		-