7. Stock-Based Awards

12 Months Ended

Jul. 31, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Awards

Note 7.  Stock-Based Awards

At July 31, 2021, we do not have any share-based payment plans approved by our shareholders. See Note 12 of Notes to Financial Statements for additional information.

Stock Options

Stock option activity during the fiscal year ended July 31, 2021 was as follows:

	Number of Options			Weighted Average Exercise Price
Options outstanding at July 31, 2020		15,050,000		$	0.26
Options canceled		(15,000,000	)		0.25
Options granted		1,000,000			1.18
Options outstanding at July 31, 2021		1,050,000		$	1.22

On March 1, 2021, as part of the APA and Dr. Vanlandingham’s employment agreement, Dr. Vanlandingham was granted 1,000,000 stock options with a fair market value of $941,000. 250,000 shares vested on the signing of closing documents. 250,000 shares vest on Phase 1A first dosing of human, 250,000 shares vest on Phase 1B first dosing of human; and 250,000 shares vest upon us being accepted on NASDAQ. These amounts are being expensed over the life of the awards and the milestones are revalued quarterly. $587,234 was expensed to General and administrative expenses in the fiscal year ended July 31, 2021.

The foregoing table only includes stock options awarded to employees and others for services rendered to us. 600,000 options with an exercise price of $1.25 and a remaining term of 7.89 years issued as consideration for our acquisition of certain intellectual property assets are not reflected in the table above.

Criteria used for determining the Black-Scholes value of options granted were as follows:

	Year Ended July 31,
	2021		2020
Expected stock price volatility		155%		–
Risk free interest rate		0.08%		–
Expected life of options (years)		3		–
Expected dividend yield		–		–

Restricted Stock Units (“RSUs”)

RSU activity during the year-ended July 31, 2021 was as follows:

RSUs outstanding at July 31, 2020	1,750,000
RSUs issued	5,325,000
RSUs vested	(2,678,181	)
RSUs outstanding at July 31, 2021	4,396,819

In January 2021, we issued RSUs covering 4,000,000 shares of our common stock, with a value of $720,000, to two officers which vest equally over 36 months. In addition, we issued RSUs covering 50,000 shares of our common stock, with a value of $21,500, to a consultant, which vest equally over 24 months. In April 2021, we issued RSUs covering 50,000 shares of common stock to a consultant, with a value of $43,000 which vests in August 2021. These amounts are being expensed over the life of the awards and $181,346 was expensed to General and administrative expenses during the fiscal year ended July 31, 2021. As of July 31, 2021, $538,654 remained to be expensed in future periods.

In March, April and May 2021, we entered into consulting agreements with three medical professionals for our Science Advisory Board and eight individuals for our Sports Advisory Board. In connection with the agreements, we issued RSUs covering 725,000 shares of our common stock with a value of $672,00 which 237,500 vested upon signing and 487,500 vest in one year. This amount is being expensed over the life of the awards and $376,056 was expensed to General and administrative expenses during the fiscal year ended July 31, 2021. As of July 31, 2021, $295,944 remained to be expensed in future periods.

Unrecognized Compensation Costs

At July 31, 2021, we had total unrecognized stock-based compensation of $1,133,770, which will be recognized over the weighted average remaining vesting period of 1.99 years.

Warrants

Warrant activity during the fiscal year ended July 31, 2021 was as follows:

	Number of Warrants			Weighted Average Exercise Price
Warrants outstanding at July 31, 2020		644,500		$	1.50
Warrants issued		4,139,834			1.05
Warrants canceled		(44,500	)		(1.50	)
Warrants outstanding at July 31, 2021		4,739,834		$	1.05

Common Stock Issued for Compensation

On July 31, 2021, Mr. Redmond received 5.3 million shares of common stock to replace the unissued shares per his November 28, 2018 amended employment agreement. The Company recognized $53,000 of compensation expense related to the 5.3 million shares granted, with fair value of $0.01 per share, as a component of General and administrative expenses.