Stock-Based Compensation

3 Months Ended

Oct. 31, 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”). On May 25, 2023, the Company amended The Plan which now authorizes the grant of up to 15 million (previously 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, 2023 and 2022, the Company did not issue any new stock options.

The Company recognized approximately $11,980 and $22,996 in stock-based compensation expense for stock options to employees for the three months ended October 31, 2023 and 2022, respectively. Unamortized compensation stock option cost totaled $4,039 and $74,976 as of October 31, 2023 and October 31, 2022, respectively.

A summary of the stock options outstanding as of October 31, 2023 and July 31, 2023, and the changes during the three months ended October 31, 2023 are presented below:

			Weighted average exercise		Weighted average remaining contractual term
	Options		price		(years)
Outstanding at July 31, 2023		13,805,000	$	0.05		3.68
Granted		-		-		-
Exercised		-		-		-
Forfeited and cancelled		-		-		-
Outstanding on October 31, 2023		13,805,000	$	0.05		3.43
Exercisable on October 31, 2023		13,721,577	$	0.05		3.40

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 13,805,000 and 13,805,000 stock options outstanding as of October 31, 2023 and July 31, 2023, was $74,840 and $28,065, respectively.

The aggregate intrinsic value of 13,721,577 and 13,519,606 stock options exercisable on October 31, 2023 and July 31, 2023 was $74,840 and $28,065, respectively.