Stockholders' Equity (Deficit)

3 Months Ended

Jan. 31, 2014

Equity [Abstract]

Stockholders' Equity (Deficit)

Note 7 Stockholders’ Equity (Deficit)

(A) Common Stock

During the three months ended January 31, 2014, the Company issued the following common stock:

Transaction Type	Quantity of Shares		Valuation		Value per Share
Services – related party –  (1)		100,000	$	72,000	$	0.72
Services – related party –  (2)		1,072,441	$	788,244	$	0.735
Services –  (3)		50,000	$	52,500	$	1.05
Total		1,222,441	$	912,744

(1) Two directors of the Company will each receive 50,000 shares of the Company’s common stock.  The stock shall vest 6 months from the date of grant.  The value of the stock was reflected as deferred compensation with the Company recognizing $6,000 in compensation expense; included in general and administrative expenses, for the three months ended January 31, 2014.

(2) Ravinder Dhat was appointed as the Company’s Chief Executive Officer and Chairman of the Board, effective January 3, 2014.  Mr. Ravinder received 1,072,441 shares of restricted common stock vesting at 12.5% every six months beginning on the 6 month anniversary of January 3, 2014.  The value of the stock was reflected as deferred compensation with the Company recognizing $8,211 in compensation expense; included in general and administrative expenses, for the three months ended January 31, 2014.

(3) In November 2013, the Company entered into a 12 month investor relations consulting agreement which notes a monthly fee of $6,000 in addition to the issuance of 100,000 shares of the Company’s common stock of which 50,000 which vest on the date of issuance, 25,000 on the 121st day and the remainder on the 180th day.

During the year ended October 31, 2013, the Company issued the following common stock:

Transaction Type	Quantity of Shares		Valuation		Value per Share
Services – related party – (May 2013) (4)		133,336	$	27,240	$	0.20
Settlement of payables (October 2013) (6)		47,619	$	40,477	$	0.85
Acquisition of patents (May 2013) (5)		666,666	$	67	$	0.0001
Total		847,621	$	67,784

The fair value of all stock issued above was based upon the agreed upon value per share on the date of issuance, which represented the best evidence of fair value.

(4) Shares vest one year from issuance.  For the year ended October 31, 2013, the Company recognized $12,485 in compensation expense which is included in general and administrative expenses. In January of 2014, the CEO to whom the shares were granted resigned.  As such, the shares issued never vested; the Company will cancel the outstanding shares and has reversed the expense of $12,485 as of January 31, 2014 in accordance with ASC 718.

(5) Shares are fully vested.  At the time of issuance, the Company lacked an active public trading market; therefore, a quoted closing trading price valuation would not best reflect the intent of the parties in connection with the valuation of these shares. Due to the lack of past, present or future specified financial or other operational data for the patents acquired; that could support a valuation in excess par, the Company believes this is the best evidence of fair value for this transaction.

(6) In October 2013, the Company settled $25,000 of accounts payable for 47,619 shares of common stock valued at $40,477 ($0.85). The fair value of this stock award was based upon the quoted closing trading price.

In May 2013, the Company’s former Chief Executive Officer cancelled 84,000,000 shares of common stock having a fair value of $8,400 ($0.0001/share – par value) for $10, with an offset to additional paid in capital.  The $10 is included in accounts payable.

On September 3, 2013, the Company executed a 14 for 1 forward stock split. All share and per share amounts have been retroactively restated to the earliest period presented.

During the 3 months ended January 31, 2014 and 2013, the Company expensed $54,226 and $0, respectively, pertaining to common stock issued for services.

(B) Stock Options

The Company applied fair value accounting for all share based payments awards.  The fair value of each option granted is estimated on the date of grant using the BSPM.

The assumptions used for options granted during the three months ended January 31, 2014 are as follows:

Exercise price	$	0.69
Expected dividends		0		%
Expected volatility		110		%
Risk free interest rate		0.8		%
Expected life of option	5 years
Expected forfeiture			0	%

The assumptions used for options granted during the year ended October 31, 2013 are as follows:

Exercise price	$	0.75
Expected dividends		0		%
Expected volatility		48% - 69		%
Risk free interest rate		0.08%-0.61		%
Expected life of option	2 years
Expected forfeiture			0	%

The following is a summary of the Company’s stock option activity:

	Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Balance – October 31, 2013		520,000	$	0.75	1.29		$	-
Granted		2,144,881		0.69		4.214		-
Exercised		-						-
Cancelled/Modified		-						-
Balance – January 31, 2014 – outstanding		2,664,881		0.70		4.21		-
Balance – January 31, 2014 – exercisable		520,000	$	0.75		1.29	$	-
Outstanding options held related party – January 31, 2014		2,144,881	$	0.735		4.92	$	-
Exercisable options held by related party – January 31, 2014		-	$	-		-	$	-
Outstanding options held by former related party – January 31, 2014		510,000	$	0.75		1.28	$	-
Exercisable options held by former related party – January 31, 2014		510,000	$	0.75		1.28	$	-

The following is a summary of the Company’s stock options granted during the three months ended January 31, 2014.

	Options		Value		Purpose for Grant
Grant to related party		2,144,881	$	1,250,865	Services to be rendered

The following is a summary of the Company’s stock options granted during the year ended October 31, 2013:

	Options		Value		Purpose for Grant
Grant to former related party		500,000	$	1,235	Services rendered
Grant to related party		10,000	$	922	Services rendered
Grant to consultant		10,000	$	922	Services rendered

All options granted were fully vested on the grant date.

On May 13, 2013, our Board of Directors approved the amendment and restatement of our Bylaws in order to, among other things, include revised provisions relating to board and stockholder meetings and indemnification of officers and directors.

On May 13, 2013, our Board of Directors approved an Amended and Restated Articles of Incorporation to (i) authorize the change of our name to “Endeavor IP, Inc.” from “Finishing Touches Home Goods, Inc.,” (ii) increase our authorized capital stock to 225,000,000 shares, consisting of 200,000,000 shares of common stock and 25,000,000 shares of “Blank Check” Preferred Stock, and (iii) change the par value of our capital stock to $0.0001 per share from $0.001 per share. On May 15, 2013, we filed the Amended and Restated Articles of Incorporation with the Secretary of State of the State of Nevada.

In August 2013, the Company issued 10,000 fully vested stock options to its former Chief Executive Officer. The options are exercisable at $0.75 per share for a period of 2 years.

In August 2013, the Company issued 10,000 fully vested stock options to a consultant. The options are exercisable at $0.75 per share for a period of 2 years.

On January 3, 2014, the Chief Executive Officer of the Company was granted the option to purchase 2,144,881 common shares exercisable at $0.69 per share.  The options expire on January 2, 2019 and vest at 12.5% every six months beginning on the 6 month anniversary of January 3, 2014.

During the 3 months ended January 31, 2014 and 2013, the Company expensed $23,164 and $0, respectively,  pertaining to options issued.