2. Basis of Presentation and Significant Accounting Policies: Stock-based Compensation (Policies)	6 Months Ended
Apr. 30, 2022
Policies
Stock-based Compensation	Stock-Based Compensation The Company follows FASB ASC 718, Compensation-Stock Compensation, which requires the measurement of compensation cost for all stock-based awards at fair value on the date of grant, and recognition of stock-based compensation expense over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes valuation model. Such fair value is recognized as an expense over the service period, net of forfeitures. Stock-based compensation expense was $40,000 and $67,000 for the three months ended April 30, 2022 and April 30, 2021, respectively. Stock-based compensation expense was $98,000 and $114,000 for the six months ended April 30, 2022 and April 30, 2021, respectively. Stock-based compensation is primarily included in selling, general, and administrative expenses. On August 16, 2021, the Company’s Board of Directors adopted the Second Amendment to the Plan, to authorize the granting of restricted stock unit (RSU) awards under the Plan. Each RSU represents the right to receive, following vesting, one share of the Company’s Common Stock. In connection with the Second Amendment to the Plan, the Board of Directors has authorized an aggregate of 800,000 RSU awards to be granted under the Plan. As of January 31, 2022, 797,500 RSU awards were granted under the Plan at a grant date fair market value of $0.63 per share, which RSU awards vest ratably over a three-year period. All 797,500 RSU awards were granted on October 22, 2021. Compensation expense related to RSU awards was $37,000 and $0 for the three months ended April 30, 2022 and April 30, 2021, respectively. Compensation expense related to RSU awards was $83,000 and $0 for the six months ended April 30, 2022 and April 30, 2021, respectively.

2. Basis of Presentation and Significant Accounting Policies: Stock-based Compensation (Policies)

6 Months Ended

Apr. 30, 2022

Stock-Based Compensation

The Company follows FASB ASC 718, Compensation-Stock Compensation, which requires the measurement of compensation cost for all stock-based awards at fair value on the date of grant, and recognition of stock-based compensation expense over the service period for awards expected to vest. The fair value of stock options is determined using the Black-Scholes valuation model. Such fair value is recognized as an expense over the service period, net of forfeitures. Stock-based compensation expense was $40,000 and $67,000 for the three months ended April 30, 2022 and April 30, 2021, respectively. Stock-based compensation expense was $98,000 and $114,000 for the six months ended April 30, 2022 and April 30, 2021, respectively. Stock-based compensation is primarily included in selling, general, and administrative expenses.

On August 16, 2021, the Company’s Board of Directors adopted the Second Amendment to the Plan, to authorize the granting of restricted stock unit (RSU) awards under the Plan. Each RSU represents the right to receive, following vesting, one share of the Company’s Common Stock. In connection with the Second Amendment to the Plan, the Board of Directors has authorized an aggregate of 800,000 RSU awards to be granted under the Plan. As of January 31, 2022, 797,500 RSU awards were granted under the Plan at a grant date fair market value of $0.63 per share, which RSU awards vest ratably over a three-year period. All 797,500 RSU awards were granted on October 22, 2021. Compensation expense related to RSU awards was $37,000 and $0 for the three months ended April 30, 2022 and April 30, 2021, respectively. Compensation expense related to RSU awards was $83,000 and $0 for the six months ended April 30, 2022 and April 30, 2021, respectively.

PASSUR Aerospace, Inc. 10-Q