The Company, under its 2012 Stock Option Plan, issues options 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 are granted. All of the options are exercisable at a purchase price based on the last trading price of the Company’s common stock.

On December 12, 2020, the Company issued 41,250 options of which 11,250 options were issued to three independent directors and 30,000 options were issued to three consultants. The options are exercisable into common stock of the Company at $0.64 per share. The Company calculated a fair value of the options of $27,190 using the Black Scholes option pricing model with computed volatility of 201.22%, risk-free interest rate of 2%, expected dividend yield 0%, stock price at measurement date of $0.64 and the expected term of ten years. The options are expensed over a five year period with 20% upon issuance and 20% for the first and each subsequent year.

During the three month period ended January 31, 2021, the Company recognized $48,703 of option expense. The unrecognized future balance to be expensed over the term of the options is $278,607.

The following sets forth the options granted and outstanding as of January 31, 2021:

	Options		Weighted Average Exercise price		Weighted Average Remaining Contract Life		Granted Options Exercisable		Intrinsic value
Outstanding at October 31, 2019		7,581,400		0.13		7.19		5,470,540	$	1,827,117
Granted		336,250		0.56		9.75		--		--
Exercised		--		--		--		--		--
Forfeited/Expired by termination		--		--		--		--		-
Outstanding at October 31, 2020		7,917,650		0.15		6.06	$	5,765,680	$	3,627,845
Granted		41,250		0.64		--		--		--
Exercised		--		--		--		--		--
Forfeited/Expired by termination		--		--		--		--		--
Outstanding at January 31, 2021		7,958,900		0.17		5.70		5,965,790	$	10,391,260