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Stock Options

3 Months Ended

Apr. 30, 2013

Stock Options

Note 7 – Stock Options

Share-based Compensation:

On October 14, 2012, the Board approved the 2012 Equity Compensation Plan (the “2012 Equity Compensation Plan”). The Equity Compensation Plan authorizes the issuance of a variety of awards, including options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and stock awards. The 2012 Equity Compensation Plan provides that no more than 12 million shares of the Company’s common stock may be issued pursuant to awards under the 2012 Equity Compensation Plan. On November 13, 2012, the Company registered the shares of common stock under the 2012 Equity Compensation Plan on a registration statement on Form S-8 filed with the Securities and Exchange Commission. Awards under the 2012 Equity Compensation Plan may be made to employees, directors and consultants of the Company. As of April 30, 2013, 1,824,631 shares of common stock and 5,400,000 options are outstanding under the 2012 Equity Compensation Plan.

During the three month period ended April 30, 2013, the Company recognized share-based compensation expenses totaling $211,566. The remaining amount of unamortized stock options expense at April 30, 2013 is $1,531,938.

The intrinsic value of exercisable and outstanding options at April 30, 2013 was $540,000.

Activity in options during the three month period ended April 30, 2013 and related balances outstanding as of that date are set forth below:

										Weighted Average
		Number of				Weighted Average				Remaining Contract
		Shares				Exercise Price					Term (# years)
Outstanding at February 1, 2013			9,400,000			$	0.26
Granted			—				—
Exercised			—				—
Forfeited and canceled			—				—

Outstanding at April 30, 2013			9,400,000			$	0.26				4.54

Exercisable at April 30, 2013			816,667			$	0.16				4.72

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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