Stock-Based Compensation

9 Months Ended

Apr. 30, 2023

Stock-Based Compensation [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 nine months ended April 30, 2023 and 2022, the Company did not issue any new stock options.

The Company recognized approximately $80,122 and $74,466, respectively, in stock-based compensation expense for stock options to employees for the nine months ended April 30, 2023 and 2022. Unamortized compensation stock option cost totaled $17,850 and $125,653, respectively, as of April 30, 2023 and 2022.

A summary of the stock options outstanding as of April 30, 2023 and July 31, 2022, and the changes during the nine months ended April 30, 2023 are presented below:

				Weighted average exercise		Weighted average remaining contractual
	Options			price		term (years)
Outstanding at July 31, 2022		9,130,000		$	0.17		2.39
Granted		-			-		-
Exercised		-			-		-
Forfeited and cancelled		(1,355,000	)		0.35		-
Outstanding on April 30, 2023		7,775,000		$	0.12		1.99
Exercisable on April 30, 2023		7,287,634		$	0.12		1.96

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 7,775,000 and 9,130,000 stock options outstanding as of April 30, 2023 and July 31, 2022, was $104,067 and $191,722, respectively.

The aggregate intrinsic value of 7,287,634 and 7,551,179 stock options exercisable on April 30, 2023 and July 31, 2022 was $93,245 and $110,380, respectively.