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 20,000,000. The options are exercisable for a period of up to 10 years from the date of the grant. The number of shares authorized to be issued under the equity incentive plan was increased from 10,000,000 to 20,000,000 through consent of stockholders to amend and restate the equity incentive plan.

The following table reflects the continuity of stock options for the years ended June 30, 2020:

A summary of stock option activity is as follows:

	June 30, 2020

Number of options outstanding:
Beginning of year		4,598,823
Granted		13,593,375
Exercised, converted		-
Forfeited / exchanged / modification		(5,633,823	)

End of period		12,558,375

Number of options vested at end of period		1,428,197
Number of options available for grant at end of period		5,257,288

Weighted average option prices per share:
Granted during the period	$	0.07
Exercised during the period	$	0.00
Terminated during the period	$	0.45
Outstanding at end of period	$	0.07
Exercisable at end of period	$	0.07

The average fair value of stock options granted was estimated to be $0.07 per share for the period ended June 30, 2020. This estimate was made using the Black-Scholes option pricing model and the following weighted average assumptions:

	2020

Expected option life (years)	2 - 4
Expected stock price volatility	227 to 230		%
Expected dividend yield		—
Risk-free interest rate	0.44 to 0.54		%

Stock-based compensation expense attributable to stock options was approximately $714,638 for the year ended June 30, 2020. As of June 30, 2020, there was approximately $783,222 of unrecognized compensation expense related to 12,552,375 unvested stock options outstanding, and the weighted average vesting period for those options was 3 years.

Warrants

At June 30, 2020, the Company had outstanding warrants to purchase the Company’s common stock which were issued in connection with multiple financing arrangements. Information relating to these warrants is summarized as follows:

Warrants	Remaining Number Outstanding		Weighted Average Remaining Life (Years)		Weighted Average Exercise Price
Warrants- SEDA Financing		86,957		2.80	$	1.15
Warrants-Issued with Convertible Notes		600,000		3.23	$	0.75
Warrants – Securities Purchase Agreement		360,577		4.02	$	0.78
Warrants A – Securities Purchase Agreement		7,018,090		.02	$	0.16
Warrants B – Securities Purchase Agreement		28,072,364		4.02	$	0.16
Total		36,137,988