a) Warrants

See Note 7(a).

On May 4, 2016, the Company amended the expiry period of 341,458 warrants, originally granted on May 11, 2012. The expiration period was extended from four to five years for all 341,458 warrants, with their new expiration date being May 10, 2017. The Company has re-calculated the estimated fair market value of these warrants using the Black-Scholes Option Pricing model and the following assumptions: term 5 years, stock price $3.31, exercise prices $2.60, volatility 131.6%, risk free rate 0.82%.

Below is a table summarizing the warrants issued and outstanding as of June 30, 2016, which have a weighted average exercise price of $2.35 per share and a weighted average remaining contractual life of 2.4 years.

b) Options

See Note 7(b).

On March 1, 2016, 5,000 stock options expired unexercised.

On April 15, 2016, the Company granted stock options to purchase 775,000 shares at an exercise price of $4.00 per share under its 2015 Stock Incentive Plan. These options vest in full on April 15, 2017 and expire five years after their vesting date. The Company has calculated the estimated fair market value of these options using the Black-Scholes Option Pricing model and the following assumptions: term 6 years, stock price $3.75, exercise prices $4.00, volatility 84.4%, risk free rate 1.22%.

On June 15, 2016, the Company amended the expiry period of 37,000 stock options, originally granted on March 20, 2013. The expiration period was extended from three to four years after vesting for all 37,000 stock options. The Company recalculated the estimated fair market value of these options using the Black Scholes model, but the result was deemed to be immaterially different to the original calculation and the financial statements were not adjusted.

On June 15, 2016, the Company amended the expiry period of 16,300 stock options, originally granted on September 2, 2013. The expiration period was extended from three to four years after vesting for all 16,300 stock options. The Company recalculated the estimated fair market value of these options using the Black Scholes model, but the result was deemed to be immaterially different to the original calculation and the financial statements were not adjusted.

On June 23, 2016, the Company granted stock options to purchase 15,000 shares at an exercise price of $4.00 per share under its 2015 Stock Incentive Plan. These options vest in full on June 23, 2017 and expire five years after their vesting date. The Company has calculated the estimated fair market value of these options using the Black-Scholes Option Pricing model and the following assumptions: term 6 years, stock price $3.35, exercise prices $4.00, volatility 83.11%, risk free rate 1.25%.

On June 30, 2016, 26,000 stock options expired unexercised, as a result of an officer ceasing employment with the Company.

Below is a table summarizing the options issued and outstanding as of June 30, 2016, all of which were issued pursuant to the 2011 Equity Incentive Plan (for option issuances prior to 2016) or the 2015 Stock Incentive Plan (for option issuances commencing in 2016) and which have a weighted average exercise price of $3.70 per share and a weighted average remaining contractual life of 3.69 years.

Total remaining unrecognized compensation cost related to non-vested stock options is approximately $1,648,588 and is expected to be recognized over a period of 1.0 years.