| Stock Options [Text Block] |
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9.
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Stock Options
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On January 20, 2010, the Company approved a new 2010 Equity Compensation plan and granted 975,000 stock options to directors and consultants of the Company with an exercise prices of $0.20, vested immediately and expiring on January 20, 2015.
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On August 16, 2010, the Company granted 150,000 stock options to a consultant of the Company with an exercise price of $0.20, vested 75,000 immediately and 75,000 on August 16, 2011 and expiring on August 16, 2015.
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On July 11, 2011, the Company granted 700,000 stock options to directors and officers of the Company with an exercise price of $0.35 per share, vested immediately and expiring on July 11, 2016.
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For the year ended October 31, 2011, the Company recorded a total of $179,789 (2010: $161,366) for stock based compensation expenses.
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The fair value of each option granted has been estimated as of the date of the grant using the Black-Scholes option pricing model with the following assumptions:
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Year ended October 31, 2011
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Year ended October 31, 2010
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Expected volatility
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131.14%
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145.85%
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Risk-free interest rate
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2.75%
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2.46%
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Expected life
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5 years
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5 years
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Dividend yield
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0.0%
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0.00%
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A summary of weighted average fair value of stock options granted during the year ended October 31, 2011 is as follows:
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Weighted
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Weighted
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Average
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Average
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Exercise
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Fair
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Period ended October 31, 2011
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Price
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Value
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Exercise price is greater than market price at grant date:
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$
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0.35
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$
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0.26
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Weighted
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Weighted
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Average
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Average
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Exercise
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Fair
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Year ended October 31, 2010
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Price
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Value
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Exercise price is greater than market price at grant date:
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$
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0.20
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$
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0.14
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A summary of the stock options for the year ended October 31, 2011 is presented below:
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Options Outstanding
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Weighted Average
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Number of Shares
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Exercise Price
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Balance, October 31, 2010
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1,525,000
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$
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0.20
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Granted
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700,000
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0.35
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Exercised
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(225,000
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)
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0.20
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Expired
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(300,000
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0.20
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Balance, October 31, 2011
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1,700,000
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$
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0.26
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The Company has the following options outstanding and exercisable:
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October 31, 2011
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Options outstanding
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Options exercisable
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Weighted
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Weighted
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Weighted
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average
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Average
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Average
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Range of
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Number
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remaining
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Exercise
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Number
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Exercise
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Exercise prices
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of shares
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contractual life
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Price
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of shares
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Price
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$0.20
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150,000
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3.80 years
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$
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0.20
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150,000
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$
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0.20
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$0.20
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850,000
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3.23 years
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$
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0.20
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850,000
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$
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0.20
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$0.35
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700,000
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4.70 years
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$
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0.35
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700,000
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$
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0.35
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Total
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1,700,000
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3.87 years
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$
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0.26
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1,700,000
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$
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0.26
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October 31, 2010
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Options outstanding
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Options exercisable
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Weighted
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Weighted
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Weighted
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average
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Average
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Average
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Range of
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Number
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remaining
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Exercise
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Number
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Exercise
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Exercise prices
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of shares
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contractual life
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Price
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of shares
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Price
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$0.20
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150,000
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4.79 years
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$
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0.20
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75,000
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$
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0.20
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$0.20
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975,000
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4.22 years
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$
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0.20
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975,000
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$
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0.20
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$0.20
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75,000
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0.72 years
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$
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0.20
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75,000
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$
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0.20
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$0.20
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325,000
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0.64 years
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$
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0.20
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325,000
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$
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0.20
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Total
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1,525,000
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3.34 years
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$
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0.20
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1,450,000
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$
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0.20
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