Stock Options

9 Months Ended

Jul. 31, 2024

NOTE 13 – STOCK OPTIONS

The Company has one stock option plan under which equity securities are authorized for issuance to officers, directors, employees and advisors: the 2019 Stock Option and Stock Bonus Plan (the “2019 Plan”). The 2019 Plan was amended on April 19, 2022 (the “Amended 2019 Plan”). Under the Amended 2019 Plan, 10% of the total shares outstanding are reserved for issuance upon the exercise of options or the grant of stock bonuses, to a maximum of 15,000,000 shares.

Options are typically granted with an exercise price equal to the closing market price of the Company’s stock at the date of grant, have a graded vesting schedule over two years and have a contractual term of five years.

During the nine months period ended July 31, 2024, the Company granted options to acquire 2,425,000 shares of common stock with a weighted-average grant-date fair value of $0.06 per share.

During the nine months period ended July 31, 2023, the Company granted options to acquire 150,000 shares of common stock with a weighted-average grant-date fair value of $0.07 per share.

No options were exercised during the nine months ended July 31, 2024 and 2023.

A summary of the range of assumptions used to value stock options granted for the nine months ended July 31, 2024 and 2023 are as follows:

	Nine Months Ended July 31,
Options	2024	2023

Expected volatility	74% – 78%	74% – 81%
Risk-free interest rate	4.12% – 4.25%	3.83% – 3.96%
Dividend yield	—	—
Expected term (in years)	2.50 – 3.50	2.50 – 3.50

The expected volatility assumption is based on the historical of common stock price. The risk-free interest rate assumption is based on yield curves on government zero-coupon bonds with a remaining term equal to the stock options’ expected life. The Company has not paid and does not anticipate paying dividends on its common stock. Companies are required to utilize an estimated forfeiture rate when calculating the expense for the reporting period. Based on the best estimate, the Company applied the estimated forfeiture rate of 0% in determining the expense recorded in the accompanying statements of comprehensive loss.

The following is a summary of stock option activity for the nine months ended July 31, 2024:

Options		Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value

	Outstanding at October 31, 2023		2,300,000	$	0.22		3.37	$	—
	Granted		2,425,000		0.12
	Outstanding at July 31, 2024		4,725,000		0.17		3.41		—
	Exercisable at July 31, 2024		3,058,334	$	0.20		3.01	$	—

The Company recognized stock-based compensation costs for stock options of $100,679 and $66,053 for the nine months ended July 31, 2024 and 2023, respectively. As of July 31, 2024, there was $57,112 of total unrecognized compensation expense.

Summarized information about stock options outstanding and exercisable at July 31, 2024 is as follows:

	Options Outstanding					Options Exercisable
	Exercise Price	Number Outstanding	Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price	Number Exercisable		Weighted Average Exercise Price
$	0.23	2,150,000	2.55	$	0.23	2,150,000	$	0.23
	0.14	150,000	3.62		0.14	100,000		0.14
	0.12	2,425,000	4.16		0.12	808,334		0.12
$	0.17	4,725,000	3.41	$	0.17	3,058,334	$	0.20

SILVER BULL RESOURCES, INC. 10-Q