| 10. |
Stock Options |
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The Company has adopted a stock option plan pursuant to which options may be granted to directors, officers, employees and consultants of the Company to a maximum of 25,000,000 shares issued and outstanding at the time of the grant. The exercise price and the vesting terms of each option is equal to the market price on the date of the grant. |
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On November 1, 2012, the Company granted 15,000,000 stock options at an exercise price of $0.10 per share expiring on November 1, 2022. All stock options were vested immediately. The fair value for these stock options was $373,052, and was estimated at the date of grant using the Black-Scholes option- pricing model assuming a weighted average expected life of 10 years, a risk-free rate of 1.75%, an expected volatility of 215%, and no dividend yield. The weighted average fair value of stock options granted was $0.10 per share. |
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On February 1, 2013, the Company granted 50,000 stock options to a consultant for services. The stock options have an exercise price of $0.10 per share, vests immediately, and expired on July 31, 2013. The fair value for these stock options was $1,450, and was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of six months, a risk-free rate of 0.11%, an expected volatility of 291%, and no dividend yield. The weighted average fair value of stock options granted was $0.10 per share. |
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On February 1, 2013, the Company granted 200,000 stock options to a consultant for services. The stock options have an exercise price of $0.10 per share, vests immediately, and expire on January 31, 2014. The fair value for these stock options was $7,302, and was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of one year, a risk- free rate of 0.15%, an expected volatility of 259%, and no dividend yield. The weighted average fair value of stock options granted was $0.10 per share. |
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On February 18, 2013, the Company granted 200,000 stock options to a consultant for services. The stock options have an exercise price of $0.10 per share, vests immediately, and expire on August 17, 2013. The fair value for these stock options was $5,799, and was estimated at the date of grant using the Black-Scholes option-pricing model assuming a weighted average expected life of six months, a risk-free rate of 0.13%, an expected volatility of 291%, and no dividend yield. The weighted average fair value of stock options granted was $0.10 per share. |
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On April 24, 2013, the Company granted 400,000 stock options to a consultant for services. The stock options have an exercise price of $0.10 per share, vests immediately, and expire on April 23, 2014. The fair value for these stock options was $10,608, and was estimated at the date of grant using the Black- Scholes option-pricing model assuming a weighted average expected life of one year, a risk-free rate of 0.13%, an expected volatility of 244%, and no dividend yield. The weighted average fair value of stock options granted was $0.10 per share. |
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The following table summarizes the continuity of the Company’s stock options: |
| Weighted | Aggregate | |||||||||
| average | intrinsic | |||||||||
| Number | exercise price | value | ||||||||
| of options | $ | $ | ||||||||
| Outstanding, July 31, 2011 | – | – | – | |||||||
| Granted | 5,100,000 | 0.11 | ||||||||
| Exercised | (5,100,000 | ) | 0.11 | |||||||
| Outstanding, July 31, 2012 | – | – | – | |||||||
| Granted | 15,850,000 | 0.10 | ||||||||
| Expired | (50,000 | ) | 0.10 | |||||||
| Outstanding, July 31, 2013 | 15,800,000 | 0.10 | – |
Additional information regarding stock options as of July 31, 2013, is as follows:
| Outstanding and exercisable | |||
| Weighted | |||
| average | Weighted | ||
| Range of | remaining | average | |
| exercise prices | Number of | contractual life | exercise price |
| $ | shares | (years) | $ |
| 0.10 | 15,800,000 | 8.8 | 0.10 |