STOCK BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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
The compensation cost for service-based stock options granted to employees and directors 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 730,000 and $875,000 during the three months ended January 31, 2022 and 2021. to . We recorded stock-based compensation expense related to service-based stock options granted to employees and directors of approximately $
For stock options granted to employees and directors that vest based on market conditions, such as the trading price of the Company’s common stock exceeding certain price targets, we use a Monte Carlo Simulation in estimating the fair value at grant date and recognize compensation cost over the implied service period (median time to vest). On June 1, 2021, our Chairman, President and Chief Executive Officer and our Chief Operating Officer and Chief Financial Officer were awarded market condition stock options for 1,405,000 and $0, respectively. shares and shares of common stock, respectively, that vest in four equal installments upon the Company’s share price achieving targets ranging from $ to $ per share, with implied service periods of three to fifteen months. We recorded market condition stock-based compensation expense during the three months ended January 31, 2022 and 2021 of approximately $
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 $109,000 and $54,000 during the three months ended January 31, 2022 and 2021, respectively.
Stock Option Plans
During the three months ended January 31, 2022, 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 January 31, 2022 and 2021, we granted options to purchase 0 and approximately $104,000, respectively. shares and shares of common stock, respectively, to employees and consultants, with exercise prices ranging from $ to $ per share, pursuant to the 2018 Share Plan. During the three months ended January 31, 2022 and 2021, stock options to purchase shares of common stock, net of shares withheld on a cashless exercise, and shares of common stock, respectively, were exercised with aggregate proceeds of $
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 three months ended January 31, 2022 is as follows:
Information regarding the 2010 Share Plan for the three months ended January 31, 2021 is as follows:
The following table summarizes information about stock options outstanding and exercisable under the 2010 Share Plan as of January 31, 2021:
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 January 31, 2022, the 2018 Share Plan had shares available for future grants. Information regarding the 2018 Share Plan for the three months ended January 31, 2022 is as follows:
Information regarding the 2018 Share Plan for the three months ended January 31, 2021 is as follows:
The following table summarizes information about stock options outstanding and exercisable under the 2018 Share Plan as of January 31, 2021:
Non-Plan Options
In addition to options granted under stock option plans, during the years ended October 31, 2012 and 2013, the Board of Directors approved the grant of stock options to certain employees and directors. Information regarding stock options that were granted outside of share plans for the three months ended January 31, 2022 is as follows:
The following table summarizes information about stock options outstanding and exercisable that were granted outside of share plans as of January 31, 2022:
Information regarding stock options that were granted outside of share plans for the three months ended January 31, 2021 is as follows:
The following table summarizes information about stock options outstanding and exercisable that were granted outside of share plans as of January 31, 2021:
Stock Awards
For stock awards granted to employees, directors and consultants that vest upon grant we recognize expense at the date of grant based on the grant date market price of the underlying common stock. We did not grant any stock awards that vested upon grant during the three months ended January 31, 2022 or 2021.
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 % of the market value of the Company’s common stock on the offering date or the purchase date of the applicable offering period, whichever is lower. The plan was adopted by our Board of Directors on August 13, 2018 and approved by our shareholders on September 27, 2018. During the three months ended January 31, 2022 and 2021, shares were purchased under the ESPP.
Warrants
On October 30, 2020 we issued a warrant, expiring on October 30, 2025, to purchase 60,000 shares of common stock at $2.06 per share, vesting over , to a consultant for investor relations services. We recorded consulting expense of approximately $57,000 during the three months ended January 31, 2021, based on the fair value of the warrant on the date of grant recognized on a straight-line basis over the vesting period. On November 16, 2021, the warrant was exercised on a cashless basis and 25,484 shares were withheld as payment.
On November 1, 2021 we issued a warrant, expiring on October 30, 2026, to purchase 60,000 shares of common stock at $4.77 per share, vesting over , to a consultant for investor relations services. We recorded consulting expense of approximately $110,000 during the three months ended January 31, 2022, based on the fair value of the warrant on the date of grant recognized on a straight-line basis over the vesting period.
As of January 31, 2022, we also had warrants outstanding to purchase 300,000 shares of common stock at $6.56 per share, issued during fiscal year 2021 and expiring on March 22, 2026. |