Transition report pursuant to Rule 13a-10 or 15d-10

Stock Options

v2.4.0.8
Stock Options
 10 Months Ended
Aug. 31, 2014
Stock Options [Text Block]
10.

Stock Options

On March 25, 2014, the Company accepted and received gross proceeds of $17,500, for the exercise of 50,000 stock options at $0.35 into 50,000 common shares of the Company.

On March 25, 2014, Jason Springett has joined the Company as an advisor and the Company granted 50,000 stock options with an exercise price of $0.60, vesting immediately and expiring on March 25, 2019.

On April 1, 2014, the Company entered into a 90 day agreement with Ken Faulkner as a Corporate Development Manager. The Company granted 100,000 stock options with an exercise price of $0.50, vesting immediately and expiring on April 1, 2019.

On May 29, 2014, the Company accepted and received gross proceeds of $5,000 for the exercise of 50,000 stock options at $0.10 into 50,000 common shares of the Company.

On July 24, 2014, the Company granted 100,000 stock options to Ron Struthers, 500,000 stock options to Robert McAllister, and 25,000 stock options to Taven White with an exercise price of $0.25, vesting immediately and expiring on July 24, 2019.

For the ten months ended August 31, 2014, the Company recorded a total of $97,002 (October 31, 2013: $21,279) for stock based compensation expenses.

The fair value of options granted has been estimated as of the date of the grant by using the Black-Scholes option pricing model with the following assumptions:

    August 31, 2014 October 31, 2013
  Expected volatility 210-252% 142.25%
  Risk-free interest rate 1.70-1.76% 1.83%
  Expected life 5 years 5 years
  Dividend yield 0.00% 0.00%

A summary of the stock options for the ten months ended August 31, 2014 is presented below:

      Options Outstanding  
            Weighted  
            Average  
      Number of Shares     Exercise Price  
  Balance, October 31, 2013   2,200,000   $ 0.23  
  Expired   (250,000 )   0.30  
  Exercised   (100,000 )   0.23  
  Granted   775,000     0.30  
  Balance, August 31, 2014   2,625,000   $ 0.24  

The Company has the following options outstanding and exercisable:

  August 31, 2014         Options outstanding     Options exercisable  
                                 
  Exercise prices   Number of     Weighted average     Weighted average     Number of     Weighted average  
      shares     remaining contractual     exercise price     shares     exercise price  
            life                    
  $0.20   150,000     0.96 years   $ 0.20     150,000   $ 0.20  
  $0.20   850,000     0.39 years   $ 0.20     850,000   $ 0.20  
  $0.35   450,000     1.86years   $ 0.35     450,000   $ 0.35  
  $0.10   400,000     3.80 years   $ 0.10     400,000   $ 0.10  
  $0.60   50,000     4.57 years   $ 0.60     50,000   $ 0.60  
  $0.50   100,000     4.59 years   $ 0.50     100,000   $ 0.50  
  $0.25   625,000     4.90 years     0.25     625,000     0.25  
                $           $    
  Total   2,625,000     2.51 years   $ 0.24     2,625,000   $ 0.24  
  October 31, 2014         Options outstanding     Options exercisable  
                                 
  Exercise prices   Number of     Weighted average     Weighted average     Number of     Weighted  
      shares     remaining contractual life     exercise price     shares     average  
                              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