• Filing Date: 2020-06-12
  • Form Type: 10-Q
  • Description: Quarterly report
v3.20.1
STOCK OPTIONS
6 Months Ended
Apr. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK OPTIONS

NOTE 11 – STOCK OPTIONS

The Company has two stock option plans, the 2010 Stock Option and Stock Bonus Plan, as amended (the “2010 Plan”) and the 2019 Stock Option and Stock Bonus Plan (the “2019 Plan”). Under each of the 2010 Plan and the 2019 Plan, the lesser of (i) 30,000,000 shares or (ii) 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses. 

 

Options are typically granted with an exercise price equal to the closing market price of the Company’s stock at the date of grant, have a graded vesting schedule over two years and have a contractual term of five years.

 

No options were granted or exercised during the six months ended April 30, 2020 and April 30, 2019.

 

The following is a summary of stock option activity for the six months ended April 30, 2020:

 

Options  Shares  Weighted Average Exercise Price  Weighted Average Remaining Contractual Life (Years)  Aggregate Intrinsic Value
             
 Outstanding at October 31, 2019    16,350,000   $0.09    2.83   $46,448 
 Outstanding at April 30, 2020    16,350,000   $0.09    2.33   $14,648 
 Exercisable at April 30, 2020    13,833,333   $0.08    2.14   $14,648 

 

The Company recognized stock-based compensation costs for stock options of $37,450 and $122,131 for the six months ended April 30, 2020 and 2019, respectively. As of April 30, 2020, there was $24,968 of total unrecognized compensation expense, which is expected to be recognized over a weighted average period of 0.21 years.

Summarized information about stock options outstanding and exercisable at April 30, 2020 is as follows:

 Options Outstanding     Options Exercisable  
 Exercise Price     

Number

Outstanding

     Weighted Average Remaining Contractual Life (Years)    Weighted Average Exercise Price    Number Exercisable     

Weighted Average Exercise

Price

 
$0.05    4,075,000    0.82   $0.05    4,075,000   $0.05 
 0.09    11,625,000    2.87    0.09    9,108,333    0.09 
 0.15    350,000    2.81    0.15    350,000    0.15 
 0.18    300,000    1.26    0.18    300,000    0.18 
$  0.05 – 0.18    16,350,000    2.33   $0.09    13,833,333   $0.08 
                            

 

Prior to the adoption of ASU 2018-07 on November 1, 2019, stock options granted to consultants with a $CDN exercise price were classified as a stock option liability on the Company’s consolidated balance sheets upon vesting. On adoption of ASU 2018-07, the classification of stock options granted to consultants with a $CDN exercise price is only reassessed if the award is modified after it vests and the consultant is no longer providing services, rather than once performance is complete and the award vests. ASU 2018-07 requires liability-classified awards that have not been settled as of the adoption date to be remeasured based on their adoption-date fair value. As a result, the Company reclassified $4,803 from stock option liability to additional paid-in capital on adoption of ASU 2018-07 (Note 3). The following is a summary of the Company’s stock option liability at April 30, 2020 and October 31, 2019:

 

Stock option liability at October 31, 2019:     $4,803 
Reclassification to additional paid-in capital    (4,803)
 Stock option liability at April 30, 2020   $—