5. STOCK OPTIONS

3 Months Ended

Dec. 31, 2018

Notes

5. STOCK OPTIONS

5.  STOCK OPTIONS

The following table summarizes stock option activity for three months ended December 31, 2018:

		Weighted	Weighted
		Average	Average
	Number of	Exercise	Remaining	Aggregate
	Shares	Price	Contractual Life (years)	Intrinsic Value
Outstanding at September 30, 2018	3,942,000	$ 0.78	8.9	$ 4,407,160
Granted	-	-
Exercised	-	-
Expired	-	-
Forfeited	-	-
Outstanding at December 31, 2018	3,942,000	$ 0.78	8.7	26,679,460
Exercisable at December 31, 2018	632,000	$ 0.51	8.2	$ 4,431,760

The Company is expensing these stock option awards on a straight-line basis over the requisite service period. The Company recognized stock option expenses of $1,789,751 for three months ended December 31, 2018. Unamortized option expense as of December 31, 2018, for all options outstanding amounted to approximately $6,216,482. These costs are expected to be recognized over a weighted-average period of 2.3 years. The Company recognized stock option expenses of $133,486 for three months ended December 31, 2017.

A summary of the status of the Company’s nonvested shares as of December 31, 2018, is presented below:

Nonvested options
	Number of
	Nonvested Shares
Nonvested shares at September 30, 2018	3,310,000
Granted	-
Exercised	-
Forfeited	-
Vested	-
Nonvested shares at December 31, 2018	3,310,000