Stock Options

12 Months Ended

Jul. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock Options

Note 8 – Stock Options

Stock option transactions under the Company’s Plan for the years ended July 31, 2023 and 2022 are summarized as follows:

Stock Options	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual		Aggregate Intrinsic Value Term (Years)		Weighted Average Grant Date Fair Value
Outstanding - July 31, 2021		-	$	-		-	$	-	$	-
Exercisable - July 31, 2021		-	$	-		-	$	-	$	-
Granted		864,489	$	0.14		-		-	$	0.14
Exercised		-	$	-		-		-	$	-
Cancelled/Forfeited		-	$	-		-		-	$	-
Outstanding - July 31, 2022		864,489	$	0.14		9.84	$	479,539	$	-
Exercisable - July 31, 2022		864,489	$	0.14		9.84	$	479,539	$	-
Granted		1,478,050	$	-		-		-	$	0.68
Exercised		-	$	-		-		-	$	-
Cancelled/Forfeited		-	$	-		-		-	$	-
Outstanding - July 31, 2023		2,342,539	$	0.49		8.98	$	142,029	$	-
Exercisable - July 31, 2023		2,219,368	$	0.48		8.98	$	142,029	$	-
Unvested - July 31, 2023		123,171	$	0.70		9.06	$	-	$	-

Year Ended July 31, 2023

In September 2022, the Company granted 1,478,050, ten-year (10) options to an employee for services to be rendered during the period September 2022 - August 2023. These options vest ratably over a twelve-month (12) period. These options had an exercise price of $0.40/share.

Using the Black-Scholes option pricing model, the Company determined that the fair value of these options granted was $1,003,002.

OPENLOCKER HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2023 AND 2022

Fair value was based upon the following management estimates:

Year Ended July 31, 2023
Expected term (years)	5
Expected volatility	274	%
Expected dividends	0	%
Risk free interest rate	2.98	%

Compensation expense recorded for stock-based compensation for the year ended July 31, 2023 was $919,417.

At July 31, 2023, the Company had unvested compensation expense of $83,585, which was recognized in August 2023.

Year Ended July 31, 2022

During the year ended July 31, 2022, the Company granted 864,489, ten-year (10) options to various employees. These options were fully vested upon issuance. These options had exercise prices ranging from $0.12 to $0.40/share.

Using the Black-Scholes option pricing model, the Company determined that the fair value of these options granted was $534,466.

For the year ended July 31, 2022, fair value was based upon the following management estimates:

Year Ended July 31, 2022
Expected term (years)	5
Expected volatility	275% - 276	%
Expected dividends	0	%
Risk free interest rate	2.85% - 2.98	%

OPENLOCKER HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JULY 31, 2023 AND 2022