Stock Based Compensation

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Note 8 - Stock Based Compensation

The equity incentive plan of the Company was established in February of 2017. The Board of Directors of the Company may from time to time, in its discretion grant to directors, officers, consultants and employees of the Company, non-transferable options to purchase common shares, provided that the number of options issued do not exceed 5,000,000. The options are exercisable for a period of up to 10 years from the date of the grant.

The following table reflects the continuity of stock options for the three months ended September 30, 2018:

A summary of stock option activity is as follows:

	September 30, 2018
Number of options outstanding:
Beginning of year		4,145,735
Granted		380,931
Exercised, converted		(86,000	)
Forfeited / exchanged / modification		(78,000	)
End of period		4,362,666
Number of options exercisable at end of period		49,514
Number of options available for grant at end of period		497,334
Weighted average option prices per share:
Granted during the period	$	0.25
Exercised during the period	$	0.25
Terminated during the period	$	0.25
Outstanding at end of period	$	0.25
Exercisable at end of period	$	0.25

The average fair value of stock options granted was estimated to be $1.05 per share for the period ended September 30, 2018. This estimate was made using the Black-Scholes option pricing model and the following weighted average assumptions:

	2018
Expected option life (years)	2.5 - 3
Expected stock price volatility	147%-151		%
Expected dividend yield		—	%
Risk-free interest rate	2.63%-2.95		%

Stock-based compensation expense attributable to stock options was approximately $598,076 for the three-month period ended September 30, 2018. As of September 30, 2018, there was approximately $4,528,841 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was 3 years.