Stock-Based Compensation

3 Months Ended

Oct. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

NOTE 4 – STOCK-BASED COMPENSATION

In November 2015, the Company adopted the Digerati Technologies, Inc. 2015 Equity Compensation Plan (the “Plan”). The Plan authorizes the grant of up to 7.5 million stock options, restricted common shares, non-restricted common shares and other awards to employees, directors, and certain other persons. The Plan is intended to permit the Company to retain and attract qualified individuals who will contribute to the overall success of the Company. The Company’s Board of Directors determines the terms of any grants under the Plan. Exercise prices of all stock options and other awards vary based on the market price of the shares of common stock as of the date of grant. The stock options, restricted common stock, non-restricted common stock, and other awards vest based on the terms of the individual grant.

During the three months ended October 31, 2021, we did not issue any new stock options.

During the three months ended October 31, 2020, we issued:

● 7,608,820 common shares to various employees as part of the Company’s Non-Standardized profit-sharing plan contribution. The Company recognized stock-based compensation expense of $247,287 equivalent to the value of the shares calculated based on the share’s closing price at the grant dates.

● 250,000 common shares to a former member of the Management team for services in lieu of cash compensation. The Company recognized stock-based compensation expense of approximately $17,500 equivalent to the value of the shares calculated based on the share’s closing price at the grant dates.

During the three months ended October 31, 2020 Digerati recognized $247,287 in stock compensation expense to employees as part of the Company’s Non-Standardized profit-sharing plan contribution and other stock compensation to employees.

The Company recognized approximately $23,394 and $20,227 in stock-based compensation expense for stock options to employees for the three months ended October 31, 2021 and 2020, respectively. Unamortized compensation stock option cost totaled $172,441 and $42,976 at October 31, 2021 and October 31, 2020, respectively.

A summary of the stock options as of October 31, 2021, and July 31, 2021, and the changes during the three months ended October 31, 2021, are presented below:

	Options		Weighted average exercise price		Weighted average remaining contractual term (years)
Outstanding at July 31, 2021		9,230,000	$	0.17		2.93
Granted		-		-		-
Exercised		-		-		-
Forfeited and cancelled		-		-		-
Outstanding at October 31, 2021		9,230,000	$	0.17		2.67
Exercisable at October 31, 2021		6,449,641	$	0.22		2.02

The aggregate intrinsic value (the difference between the Company’s closing stock price on the last trading day of the period and the exercise price, multiplied by the number of in-the-money options) of the 9,230,000 and 9,230,000 stock options outstanding at October 31, 2021, and July 31, 2021, was $250,387 and $392,891, respectively.

The aggregate intrinsic value of 6,449,641 and 6,091,863 stock options exercisable at October 31, 2021, and July 31, 2021, was $78,868 and $91,978, respectively.