On May 4, 2018, the Company effected a share consolidation (reverse split) of the Company's common shares at a ratio of 1-for-7.

As a result of the reverse split, every seven shares of the issued and outstanding common shares, without par value, consolidated into one newly-issued outstanding common share, without par value, after fractional rounding. The number of warrants and options were proportionately adjusted by the split ratio and the exercise prices correspondingly increased by the same split ratio.

All shares and exercise prices are presented on a post-split basis in these condensed interim consolidated financial statements.

The Company uses the Black-Scholes option valuation model to determine the fair value of share-based compensation for placement agent warrants and share options granted. Option valuation models require the input of highly subjective assumptions including the expected price volatility. The Company has used historical volatility to estimate the volatility of the share price. Changes in the subjective input assumptions can materially affect the fair value estimates, and therefore the existing models do not necessarily provide a reliable single measure of the fair value of the Company’s warrants and share options.

	Number of Warrants			Weighted Average Exercise Price

Balance - September 30, 2017		180,805		$	31.50

Granted		5,665,528			2.68
Granted pre-funded warrants		687,076			.01
Exercised		(1,752,373	)		2.65
Exercised pre-funded warrants		(687,076	)		.01

Balance - September 30, 2018		4,093,960		$	3.96

Expired		(2,044,152	)		2.65

Balance - December 31, 2018		2,049,808		$	5.27

Exercise Price		Number of Warrants		Expiry Date

$	31.50		180,805	January 2022
	2.65		1,645,175	May 2023
	3.31		223,828	May 2023

			2,049,808

The Company adopted an incentive compensation plan in 2017 (the Incentive Plan), which amended and restated the 2013 fixed share option plan and is administered by the Board of Directors. Options, restricted shares and restricted share units are eligible for grants under the Incentive Plan. The number of shares available for issuance under the Incentive Plan is 228,143, including shares available for the exercise of outstanding options under the 2013 fixed share option plan. No restricted shares or restricted share units have been granted as of December 31, 2018.

The exercise price of an option is set at the closing price of the Company’s common shares on the date of grant. Share options granted to directors, officers, employees and certain individual consultants for past service are subject to the following vesting schedule: (a) one-third shall vest immediately, (b) one-third shall vest at 12 months from the date of grant and (c) one-third shall vest at 18 months from the date of grant.

Share options granted to directors, officers, employees and certain individual consultants for future service are subject to the following vesting schedule: (x) one-third shall vest at 12 months from the date of grant, (y) one-third shall vest at 24 months from the date of grant and (z) one-third shall vest at 36 months from the date of grant.

Share options granted to certain individual investor relations consultants are subject to the following vesting schedule: (aa) 25% shall vest at 3 months from the date of grant, (bb) 25% shall vest at 6 months from the date of grant, (cc) 25% shall vest at 12 months from the date of grant and (dd) 25% shall vest at 15 months from the date of grant.

	Number of Options			Weighted Average Exercise Price

Balance - September 30, 2017		58,711		$	40.18

Granted		29,426			5.88
Expired		(2,266	)		84.87
Expired		(15,373	)		42.07	CDN $

Balance - September 30, 2018		70,498		$	25.42

Expired		(2,203	)		11.44
Expired		(1,786	)		117.19	CDN $

Balance – December 31, 2018		66,509		$	23.60

The following table summarizes information about the options under the Incentive Plan outstanding and exercisable at December 31, 2018:

Number of Options		Exercisable at December 31, 2018		Range of exercise prices	Expiry Dates
	13,479		13,479	CDN$15.00 - 35.00	Apr 2019-Dec 2019
	37,985		17,534	$5.00 - 20.00	Sep 2023-Mar 2025
	7,214		7,214	CDN$40.00 - 70.00	May 2020-Jun 2022
	1,972		1,972	$50.00 - 60.00	Dec 2022
	1,644		1,644	CDN$105.00 - 140.00	Nov 2018-Nov 2021
	4,215		4,215	$120.00 - 130.00	Nov 2020
	66,509		46,058

As of December 31, 2018, the Company had approximately $44,000 of unrecognized share-based compensation expense, which is expected to be recognized over a period of 25 months.