STOCK-BASED COMPENSATION

6 Months Ended

Jul. 31, 2022

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

Note 6 – STOCK-BASED COMPENSATION

The Company’s stock-based compensation programs are long-term retention programs that are intended to attract, retain, and provide incentives for employees, officers, and directors, and to align stockholder and employee interests.

Under the 2020 Stock Plan, the Company grants Incentive Stock Options (“ISO”), Nonstatutory Stock Options (“NSO”), Restricted Stock (“RS”) and Restricted Stock Units (“RSU). ISO and NSO are granted under service conditions. RS and RSU are granted under vesting criteria set by the Administrator and could be based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment or service), or any other basis determined by the Administrator at their discretion. Stock options granted to employees generally vest over a four-year period, although certain grants may vest over a longer or shorter period. Stock options granted to non-employees generally vest over a one-year period.

Valuation of Stock-Based Compensation

Stock-based compensation cost is measured at the grant date based on the fair value of the award. The fair value of the awards are fixed at grant date and amortized over the longer of the remaining performance or service period. The fair value of stock-based grant awards is estimated using the fair value of the Company’s most recent historical transaction with third parties.

A summary of restricted share activity under the 2020 Stock Plan for the six months ended July 31, 2022 are as follows:

	Number of Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Life (Years)
January 31, 2022	53,931,440	$	-	1
Granted	-		-
Exercised	-		-
Forfeited	-		-
July 31, 2022	53,931,440	$	-	1

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Note 6 – STOCK-BASED COMPENSATION (Continued)

A summary of the status of the Company’s nonvested shares for the six months ended as of July 31, 2022, and changes during the six months ended July 31, 2022 are as follows:

	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at January 31, 2022	53,931,440	$	0.005
Granted	-		0.005
Vested	-		-
Forfeited	-		0.005
Nonvested at July 31, 2022	53,931,440	$	0.005
Expected to vest	53,931,440	$	0.005

Compensation Costs

The Company recognizes the estimated compensation cost of all stock-based awards generally on a straight-line basis over the requisite service period of the entire award, which is generally the vesting period. The estimated compensation cost is based on the fair value of the common stock on the date of grant. The Company accounts for forfeitures as they occur.

As of July 31, 2022, there was $73,015 of unrecognized compensation cost related to non-vested stock-based awards which will be recognized over a weighted average period of one year. Total unrecognized compensation cost will be adjusted for future changes based on actual forfeitures. Share-based compensation recognized for the three months ended July 31, 2022 amounted to $73,018.