Quarterly report pursuant to Section 13 or 15(d)

Stock Options

v2.4.0.6
Stock Options
 9 Months Ended
Jul. 31, 2012
Stock Options [Text Block]

10.

Stock Options

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.

For the nine months ended July 31, 2012, the Company recorded a total of $9,589 (2011: $179,789) 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:

    Nine months ended July 31, 2012
  Expected volatility 129.14%
  Risk-free interest rate 2.75%
  Expected life 5 years
  Dividend yield 0.0%

A summary of the stock options for the nine months ended July 31, 2012 is presented below:

      Options Outstanding  
            Weighted Average  
      Number of Shares     Exercise Price  
  Balance, October 31, 2011   1,700,000   $   0.26  
  Granted   40,000     0.30  
  Cancelled   (40,000 )   0.30  
  Balance, July 31, 2012   1,700,000   $   0.26  

The Company has the following options outstanding and exercisable:

  July 31, 2012         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     2.47 years   $ 0.20     150,000   $ 0.20  
  $0.20   850,000     3.04 years   $ 0.20     850,000   $ 0.20  
  $0.35   700,000     3.95years   $ 0.35     700,000   $ 0.35  
  Total   1,700,000     3.13 years   $ 0.26     1,700,000   $ 0.26