STOCK OPTIONS AND WARRANTS

6 Months Ended

Mar. 31, 2016

Stock Options And Warrants [Abstract]

Stock Options And Warrants [Text Block]

NOTE 8:  STOCK OPTIONS AND WARRANTS

As of March 31, 2016, we had issued options and warrants still outstanding to purchase up to 100,000 ONSM common shares, including 50,000 shares under Plan Options to financial consultants and 50,000 shares under warrants issued in connection with a financing transaction.

On September 18, 2007, our Board of Directors and a majority of our shareholders adopted the 2007 Equity Incentive Plan (the “Plan”), which authorized the issuance of up to 1,000,000 shares of ONSM common stock pursuant to stock options, stock purchase rights, stock appreciation rights and/or stock awards for employees, directors and consultants. On March 25, 2010, our Board of Directors and a majority of our shareholders approved a 1,000,000 increase in the number of shares authorized for issuance under the Plan, for total authorization of 2,000,000 shares and on June 13, 2011 they authorized a further increase in authorized Plan shares by 2,500,000 to 4,500,000. Based on the issuance of 3,627,763 common shares under the Plan (including 2,875,000 shares issued to the Executives under an incentive program that covered certain periods through September 30, 2015 plus 375,000 shares accrued for potential issuance to the Executives under that incentive program – see note 6) through March 31, 2016 and 50,000 outstanding financial consultant Plan Options as of March 31, 2016, there are 822,237 shares available for additional issuances under the Plan. As of March 31, 2016, no Plan Options previously issued to our employees or directors were outstanding, but there were outstanding and fully vested Plan Options issued to financial consultants as follows:

	Number of common shares	Exercise price  per share	Expiration Date
Issuance date
November 2011	30,000	$0.92	Nov 2016
July 2012	20,000	$6.00	July 2016
Total common shares underlying financial consultant      options as of  March 31, 2016	50,000

On February 15, 2012, in exchange for $140,000 cash proceeds, we issued Lincoln Park Capital Fund, LLC (“LPC”) 200,000 unregistered common shares and a five-year warrant to purchase 100,000 unregistered common shares at an exercise price of $1.00 per share (“the LPC Warrant”). Effective October 25, 2012, the LPC Warrant was cancelled and replaced with the New LPC Warrant, which was issued with 50,000 underlying common shares exercisable at $0.38 per share, with such amounts only adjustable in accordance with standard anti-dilution provisions. The New LPC Warrant was fully vested as of March 31, 2016 and expires on February 15, 2017. The New LPC Warrant contains certain cashless exercise rights. The number of shares of ONSM common stock that can be issued upon the exercise of the New LPC Warrant is limited so that following any exercise the total number of shares of ONSM common stock beneficially owned by the holder does not exceed 4.99% of our issued and outstanding common stock, although this percentage may be changed at the holder’s option upon not less than 61 days advance notice and provided the limitation does not exceed 9.99%. The exercise price of the New LPC Warrant is subject to adjustment for events including stock splits, stock dividends, pro rata distributions of equity securities, evidences of indebtedness, rights or warrants to purchase common stock or cash or any other asset or mergers or consolidations. Such adjustment of the exercise price would in most cases result in a corresponding adjustment in the number of shares underlying the warrant.