OPTIONS

3 Months Ended

Jan. 31, 2016

Notes to Financial Statements

NOTE 3 - OPTIONS

The Company, under its 2012 Stock Option Plan, issues option to various officers, directors and consultants. The options vest in equal annual installments over a five year period with the first 20% vested when the options were granted. All of the options are exercisable at a purchase price based on the last trading price of the Company's common stock.

On January 6, 2016, the Company issued 504,500 options with a conversion price of $1.02 per share to 14 officers, directors, employees and consultants of the Company.

The Company has elected to expense the options over the life of the option as stock based compensation. The expense is calculated with a Black Scholes model to reach the fair value over the length of each option. The total value calculated for option expense is $3,058,475. During the period ended January 31, 2016, the Company expensed $226,155 or options. The unrecognized future balance to be expensed over the term of the options is $2,013,375.

The following sets forth the options granted and outstanding as of January 31, 2016:

	Options		Weighted Average Exercise price		Weighted Average Remaining Contract Life		Granted Options Exercisable		Intrinsic value
Outstanding at October 31, 2015		5,768,200		0.50		7.88		2,317,600		3,209,363
Granted		504,500		1.02		9.51		201,800		--
Exercised				--		--		--		--
Outstanding at January 31, 2016		6,272,700		0.56		8.01		2,519,400		3,036,317