Stock Options [Text Block] |
10.
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Stock Options
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On November 15, 2011, the Company granted 40,000 stock options to consultants of the Company with an exercise price of $0.30 per share, vested immediately and expiring on November 15, 2016.
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For the quarter ended January 31, 2012, the Company recorded a total of $9,589 (2011: $Nil) for stock based compensation expenses. This is related to a non-exclusive agreement that the Company entered into with a third party IR services company, Trident Financial Corp., to assist the Company with the development and implementation of a public and investor relations and communications program, and provide ongoing assistance to the Company regarding the development and enhancement of the Company’s public and market image.
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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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Quarter ended January 31, 2012
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Expected volatility
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129.14%
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Risk-free interest rate
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2.75%
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Expected life
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5 years
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Dividend yield
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0.0%
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A summary of weighted average fair value of stock options granted during the quarter ended January 31, 2012 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 January 31, 2012
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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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0.30
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$
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0.24
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A summary of the stock options for the quarter ended January 31, 2012 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, 2011
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1,700,000
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$
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0.26
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Granted
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40,000
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0.30
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Balance, January 31, 2012
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1,740,000
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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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January 31, 2012
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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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2.97 years
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$0.20
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150,000
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$0.20
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$0.20
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850,000
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3.54years
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$0.20
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850,000
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$0.20
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$0.35
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700,000
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4.45 years
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$0.35
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700,000
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$0.35
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$0.30
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40,000
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4.79 years
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$0.30
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40,000
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$0.30
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Total
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1,740,000
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3.66 years
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$0.26
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1,740,000
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$0.26
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