Quarterly report pursuant to Section 13 or 15(d)

Stock Options

 v2.3.0.11
Stock Options
9 Months Ended
Jul. 31, 2011
Stock Options [Text Block]
10.

Stock Options

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 exercise prices of $0.20, vested immediately and expiring on January 20, 2015.

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.

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, vested immediately and expiring on July 11, 2016.

For the nine months period ended July 31, 2011, the Company recorded a total of $179,789 (2010: $139,050) 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:

      Period ended
July 31, 2011
    Year ended
October 31, 2010
 
  Expected volatility   131.14%     145.85%  
  Risk-free interest rate   2.75%     2.46%  
  Expected life   5 years     5 years  
  Dividend yield   0.0%     0.00%  

A summary of weighted average fair value of stock options granted during the period ended July 31, 2011 is as follows:

      Weighted     Weighted  
      Average     Average  
      Exercise     Fair  
  Period ended July 31, 2011   Price     Value  
  Exercise price is greater than market price at grant date: $  0.35   $  0.26  
               
      Weighted     Weighted  
      Average     Average  
      Exercise     Fair  
  Year ended October 31, 2010   Price     Value  
  Exercise price is greater than market price at grant date: $  0.20   $  0.14  

A summary of the stock options for the quarter ended July 31, 2011 is presented below:

      Options Outstanding  
            Weighted Average  
      Number of Shares     Exercise Price  
  Balance, October 31, 2010   1,525,000   $  0.20  
  Granted   700,000     0.35  
  Exercised   (225,000 )   0.20  
  Expired   (275,000 )   0.20  
  Balance, July 31, 2011   1,725,000   $  0.26  

The Company has the following options outstanding and exercisable:

  July 31, 2011         Options outstanding     Options exercisable  
                                 
            Weighted     Weighted           Weighted  
            average     Average           Average  
  Range of   Number     remaining     Exercise     Number     Exercise  
  Exercise prices   of shares     contractual life     Price     of shares     Price  
  $0.20   150,000     4.05 years   $ 0.20     75,000   $ 0.20  
  $0.20   875,000     3.48 years   $ 0.20     875,000   $ 0.20  
  $0.35   700,000     4.95 years   $ 0.35     700,000   $ 0.35  
  Total   1,725,000     4.12 years   $ 0.26     1,650,000   $ 0.25