Stockholders' Deficit

9 Months Ended

Oct. 31, 2019

Equity [Abstract]

Stockholders' Deficit

Note 10 - Stockholders’ Deficit

Common Stock

On June 1, 2019, the Company issued 125,000 shares of its common stock to a consultant for services to be rendered. At the date of grant, the shares had a fair value of $71,875 and is included in prepaid expenses on the unaudited condensed consolidated balance sheets. During the three and nine months ended October 31, 2019, the Company recorded $10,268 and $17,113 of stock-based compensation related to these shares.

(A) Options

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

	Options		Weighted Average Exercise Price
Outstanding – January 31, 2019		649,000	$	0.77
Exercisable – January 31, 2019		521,500	$	0.71
Granted		265,000	$	0.53
Exercised		-	$	-
Forfeited/Cancelled		-	$	-
Outstanding – October 31, 2019		914,000	$	0.70
Exercisable – October 31, 2019		679,000	$	0.71

		Options Outstanding						Options Exercisable
Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.39 – 1.38		914,000		2.86	$	0.70		679,000	$	0.71

At October 31, 2019 the total intrinsic value of options outstanding and exercisable was $86,480 and $63,980, respectively.

During the nine months ended October 31, 2019, the Company issued to 265,000 options to the members of the Board of Directors and an employee. The options have an exercise price range of $0.52 to $0.70 per share, a term of 5 years, and 1-year vesting. The options have an aggregated fair value of approximately $94,374 that was calculated using the Black-Scholes option-pricing model based on the assumptions discussed above in Note 2.

During the nine months ended October 31, 2018, 40,000 options were exercised by the option holders. The Company issued 40,000 shares of common stock as a result of this exercise and received proceeds of $40,000. No options were exercised during the nine months ended October 31, 2019.

For the nine months ended October 31, 2019 and 2018, the Company recognized share-based compensation related to options of an aggregate of $50,744 and $128,039, respectively. At October 31, 2019, unrecognized share-based compensation was $72,658.

(B) Warrants

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

	Warrants			Weighted Average Exercise Price
Outstanding – January 31, 2019		6,245,331		$	1.04
Exercisable – January 31, 2019		6,245,331		$	1.04
Granted		-		$	-
Exercised		-		$	-
Forfeited/Cancelled		(188,667	)	$	-
Outstanding – October 31, 2019		6,056,664		$	1.02
Exercisable – October 31, 2019		6,056,664		$	1.02

Warrants Outstanding						Warrants Exercisable
Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life (in years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.67 – 1.50		6,056,664		1.12	$	1.02		6,056,664	$	1.02

At October 31, 2019, the total intrinsic value of warrants outstanding and exercisable was $0 and $0, respectively.

During the nine months ended October 31, 2019, no warrants were exercised by the warrant holders.

During the nine months ended October 31, 2018, 467,496 warrants were exercised by the warrant holders on a cashless basis. The Company issued 72,804 shares of common stock as a result of this exercise.