The equity incentive plan of the Company was established in February of 2017 and was amended and restated on April 14, 2020. 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 a consent of stockholders to amend and restate the equity incentive plan.

The following table reflects the continuity of stock options for the three months ended September 30, 2020:

A summary of stock option activity is as follows:

	September 30, 2020

Number of options outstanding:
Beginning of year		12,558,375
Granted		300,000
Exercised, converted		-
Forfeited / exchanged / modification		(2,036,000	)

End of period		10,822,375

Number of options exercisable at end of period		3,609,788
Number of options available for grant at end of period		4,957,288

Weighted average option prices per share:
Granted during the period	$	0.08
Exercised during the period	$	0.00
Terminated during the period	$	0.08
Outstanding at end of period	$	0.08
Exercisable at end of period	$	0.08

The average fair value of stock options granted was estimated to be $0.07 per share for the period ended September 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	227to234		%
Expected dividend yield		—
Risk-free interest rate	0.44to0.54		%

Stock-based compensation expense attributable to stock options was approximately $54,123 for the three months ended September 30, 2020. As of September 30, 2020, there was approximately $620,849 of unrecognized compensation expense related to 10,822,375 unvested stock options outstanding, and the weighted average vesting period for those options was 3 years.

Warrants

At September 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-Financing		86,957		2.80	$	1.15
Warrants-Issued with Convertible Notes		600,000		3.23	$	0.75
Warrants - Financing		360,577		4.02	$	0.78
Warrants A – Financing (expired July 2020)		-		-	$	-
Warrants B – Financing		28,072,364		4.02	$	0.16
Total		29,119,898