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 $ 1,094,000 1,153,000 3,440,000 3,265,000 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 $ 23,000 47,000 101,000 175,000 Stock Option Plans During the three and nine months ended July 31, 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 July 31, 2024 and 2023, we did not grant any options to purchase shares of common stock, and during the nine months ended July 31, 2024 and 2023, we granted options to purchase 1,350,000 1,505,000 3.17 4.39 80,000 194,000 160,000 115,417 10,446 3,000 123,999 318,000 161,111 116,225 39,525 81,000 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 nine months ended Jul 31, 2024 is as follows: SCHEDULE OF OPTION ACTIVITY Shares Weighted Aggregate Options outstanding at October 31, 2023 1,189,000 $ 2.94 Granted 1,350,000 $ 4.38 Exercised (63,000 ) $ 2.40 Expirations (313,907 ) $ 4.21 Options outstanding and exercisable at July 31, 2024 1,126,000 $ 2.97 $ 822 The following table summarizes information about stock options outstanding and exercisable under the 2010 Share Plan as of July 31, 2024: SCHEDULE OF OPTIONS OUTSTANDING AND EXERCISABLE Range of Exercise Number Weighted Weighted Average $ 0.67 2.27 316,000 3.0 $ 1.11 $ 2.58 3.13 301,000 1.5 $ 2.91 $ 3.46 5.30 509,000 3.1 $ 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 July 31, 2024, the 2018 Share Plan had 938,907 SCHEDULE OF OPTION ACTIVITY Shares Weighted Aggregate Options outstanding at October 31, 2023 10,241,000 $ 3.67 Granted 1,350,000 $ 4.38 Exercised (60,999 ) $ 2.73 Expirations (313,907 ) $ 4.21 Options outstanding at July 31, 2024 11,216,094 $ 3.74 $ 1,513 Options exercisable at July 31, 2024 7,695,385 $ 3.55 $ 1,381 The following table summarizes information about stock options outstanding and exercisable under the 2018 Share Plan as of July 31, 2024: SCHEDULE OF OPTIONS OUTSTANDING AND EXERCISABLE Options Outstanding Options Exercisable Range of Number Weighted Weighted Number Weighted Weighted $ 2.09 3.87 5,353,879 5.7 $ 3.24 5,028,261 5.5 $ 3.26 $ 3.96 5.30 5,862,215 7.7 $ 4.20 2,667,124 7.1 $ 4.09 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 July 31, 2024, we had warrants outstanding to purchase 300,000 6.56 Information regarding the Company’s warrants for the nine months ended July 31, 2024 is as follows: SCHEDULE OF WARRANTS ACTIVITY Shares Weighted Aggregate Warrants outstanding at October 31, 2023 300,000 $ 6.56 Warrants outstanding and exercisable at July 31, 2024 300,000 $ 6.56 $ 0 The following table summarizes information about the Company’s outstanding and exercisable warrants as of July 31, 2024: SCHEDULE OF OUTSTANDING AND EXERCISABLE Range of Exercise Number Weighted Weighted Average $ 6.56 300,000 1.6 $ 6.56 Stock Awards During the three months ended July 31, 2024 and 2023, we issued 60,000 4,076 62,000 17,000 89,336 17,554 158,000 67,000 97,000 0 |