Annual report pursuant to Section 13 and 15(d)

Stock Options

v2.4.0.8
Stock Options
 12 Months Ended
Oct. 31, 2013
Stock Options [Text Block]
9.

Stock Options

   
 

On June 18, 2013, the Company granted 500,000 stock options to officers, directors and consultants of the Company with an exercise price of $0.10, vested immediately, expiring June 18, 2018.

   
 

For the year ended October 31, 2013, the Company recorded a total of $21,279 (2012: $11,336) for stock based compensation expenses.

   
 

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:

    Year ended October 31, 2013 Year ended October 31, 2012
  Expected volatility 142.25% 129.14% - 152.92%
  Risk-free interest rate 1.83% 2.75%
  Expected life 5 years 5 years
  Dividend yield 0.0% 0.0%

A summary of the stock options for the year ended October 31, 2013 is presented below:

      Options Outstanding  
            Weighted Average  
      Number of Shares     Exercise Price  
  Balance, October 31, 2011   1,700,000   $ 0.26  
  Granted   65,000     0.25  
  Expired   (65,000 )   0.30  
  Balance, October 31, 2012   1,700,000   $ 0.26  
  Granted   500,000     0.10  
  Balance, October 31, 2013   2,200,000   $ 0.23  

The Company has the following options outstanding and exercisable:

  October 31, 2013         Options outstanding     Options exercisable  
                                 
  Range of Exercise   Number of     Weighted average     Weighted average     Number of     Weighted average  
  prices   shares     remaining contractual life     exercise price     shares     exercise price  
  $0.20   150,000     1.79 years   $ 0.20     150,000   $ 0.20  
  $0.20   850,000     1.22 years   $ 0.20     850,000   $ 0.20  
  $0.35   700,000     2.70years   $ 0.35     700,000   $ 0.35  
  $0.10   500,000     4.63 years   $ 0.10     500,000   $ 0.10  
  Total   2,200,000     2.50 years   $ 0.23     2,200,000   $ 0.23