| Stock Options [Text Block] |
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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 six months ended April 30, 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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Six months ended April 30, 2012 |
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Expected volatility |
129.14% |
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Risk-free interest rate |
2.75% |
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Expected life |
5 years |
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Dividend yield |
0.0% |
A summary of weighted average fair value of stock options granted during the six months ended April 30, 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 April 30, 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: |
$ |
0.30 |
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$ |
0.24 |
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A summary of the stock options for the six months ended April 30, 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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$ |
0.26 |
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Granted |
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40,000 |
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0.30 |
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Balance, April 30, 2012 |
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1,740,000 |
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$ |
0.26 |
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The Company has the following options outstanding and exercisable:
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April 30, 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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$0.20 |
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150,000 |
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2.72 years |
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$ |
0.20 |
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150,000 |
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$ |
0.20 |
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$0.20 |
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850,000 |
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3.29 years |
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$ |
0.20 |
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850,000 |
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$ |
0.20 |
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$0.35 |
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700,000 |
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4.20ye ars |
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$ |
0.35 |
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700,000 |
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$ |
0.35 |
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$0.30 |
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40,000 |
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4.24ye ars |
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$ |
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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3.41 years |
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$ |
0.26 |
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1,740,000 |
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$ |
0.26 |
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