STOCK-BASED COMPENSATION | 3. STOCK-BASED COMPENSATION The Company maintains stock equity incentive plans under which the Company grants incentive stock options, non-qualified stock options, stock appreciation rights, stock awards, performance awards, or stock units to employees, directors and consultants. Stock Option Compensation Expense We account for stock options granted to employees, directors and others using the accounting guidance in ASC 718, Stock Compensation (“ASC 718”). We estimate the fair value of service-based stock options on the date of grant, using the Black-Scholes pricing model, and recognize compensation expense over the requisite service period of the grant. We recorded stock-based compensation expense related to service-based stock options granted to employees and directors of approximately $ 1,238,000 1,155,000 2,346,000 2,112,000 The compensation cost for service-based stock options granted to consultants is measured at the grant date, based on the fair value of the award using the Black-Scholes pricing model, and is expensed on a straight-line basis over the requisite service period (the vesting period of the stock option) which is one to three years. We recorded stock-based consulting expense related to stock options granted to consultants of approximately $ 22,000 47,000 78,000 128,000 Stock Option Plans During the three and six months ended April 30, 2024, we had two stock option plans: the Anixa Biosciences, Inc. 2010 Share Incentive Plan (the “2010 Share Plan”) and the Anixa Biosciences, Inc. 2018 Share Incentive Plan (the “2018 Share Plan”), which were adopted by our Board of Directors on July 14, 2010 and January 25, 2018, respectively. The 2018 Share Plan was approved by our shareholders on March 29, 2018. Stock Option Activity During the three months ended April 30, 2024 and 2023, we granted options to purchase 15,000 0 1,350,000 1,505,000 3.17 4.39 19,999 27,818 57,000 75,000 43,999 124,000 1,111 808 29,079 78,000 2010 Share Plan The 2010 Share Plan provided for the grant of nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to employees, directors and consultants. In accordance with the provisions of the 2010 Share Plan, the plan terminated with respect to the ability to grant future awards on July 14, 2020. Information regarding the 2010 Share Plan for the six months ended April 30, 2024 is as follows: SCHEDULE OF OPTION ACTIVITY Shares Weighted Average Exercise Price Per Share Aggregate Intrinsic Value (in thousands) Options outstanding at October 31, 2023 1,189,000 $ 2.94 Granted 1,350,000 $ 4.38 Exercised (13,000 ) $ 2.92 Options outstanding and exercisable at April 30, 2024 1,176,000 $ 2.94 $ 643 The following table summarizes information about stock options outstanding and exercisable under the 2010 Share Plan as of April 30, 2024: SCHEDULE OF OUTSTANDING AND EXERCISABLE Range of Exercise Prices Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price $ 0.67 2.27 366,000 3.1 $ 1.27 $ 2.58 3.13 301,000 1.7 $ 2.91 $ 3.46 5.30 509,000 4.0 $ 4.17 2018 Share Plan The 2018 Share Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, stock awards, performance awards and stock units to employees, directors and consultants. As of April 30, 2024, the 2018 Share Plan had 938,907 SCHEDULE OF OPTION ACTIVITY Shares Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Options outstanding at October 31, 2023 10,241,000 $ 3.67 Granted 1,350,000 $ 4.38 Exercised (30,999 ) $ 2.78 Expirations (313,907 ) $ 4.21 Options outstanding at April 30, 2024 11,246,094 $ 3.74 $ 582 Options exercisable at April 30, 2024 7,363,587 $ 3.57 $ 505 The following table summarizes information about stock options outstanding and exercisable under the 2018 Share Plan as of April 30, 2024: SCHEDULE OF OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price $ 2.09 3.87 5,383,879 6.0 $ 3.24 4,953,309 5.8 $ 3.27 $ 3.96 5.30 5,862,215 7.9 $ 4.20 2,410,278 7.4 $ 4.21 Employee Stock Purchase Plan The Company maintains the Anixa Biosciences, Inc. Employee Stock Purchase Plan (the “ESPP”) which permits eligible employees to purchase shares at not less than 85 2,616 1,903 7,000 6,000 Warrants As of April 30, 2024, we had warrants outstanding to purchase 300,000 6.56 March 22, 2026 Information regarding the Company’s warrants for the six months ended April 30, 2024 is as follows: SCHEDULE OF WARRANTS ACTIVITY Shares Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Warrants outstanding at October 31, 2023 300,000 $ 6.56 Warrants outstanding and exercisable at April 30, 2024 300,000 $ 6.56 $ 0 The following table summarizes information about the Company’s outstanding and exercisable warrants as of April 30, 2024: SCHEDULE OF OUTSTANDING AND EXERCISABLE Range of Exercise Prices Number Outstanding and Exercisable Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price $ 6.56 300,000 1.9 $ 6.56 |