Annual report pursuant to Section 13 and 15(d)

CAPITAL STOCK

v3.24.0.1
CAPITAL STOCK
 12 Months Ended
Oct. 31, 2023
Equity [Abstract]  
CAPITAL STOCK

NOTE 9 – CAPITAL STOCK

 

Common Stock

 

2017 Stock Incentive Plan

 

On December 6, 2017, the Board of Directors adopted the 2017 Stock Incentive Plan (the “2017 Plan”). The purpose of the Plan is to advance the interests of the Company and its stockholders by enabling the Company and its subsidiaries to attract and retain qualified individuals through opportunities for equity participation in the Company, and to reward those individuals who contribute to the Company’s achievement of its economic objectives. The Plan was adopted subject to stockholders’ approval and was approved by Stockholders at the Company’s Annual General Meeting held on July 24, 2018.

 

The maximum number of shares of Common Stock available for issuance under the 2017 Plan is 913,612 shares. The shares available for issuance under the 2017 Plan may, at the election of the Compensation Committee, be either treasury shares or shares authorized but unissued, and, if treasury shares are used, all references in the 2017 Plan to the issuance of shares will, for corporate law purposes, be deemed to mean the transfer of shares from treasury.

 

2021 Stock Incentive Plan

 

On July 12, 2021, the Board of Directors adopted the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan was approved by the Company’s stockholders at its Annual General Meeting held on September 14, 2021. The 2021 Plan is identical to the 2017 Plan in all material respects, except that the number of shares available for issuance thereunder is 1,000,000.

 

As of October 31, 2023, there were a total of 1,370,300 shares available for issuance under the 2017 Plan and 2021 Plan.

 

A summary of stock options activity is as follows:

SCHEDULE OF STOCK OPTION ACTIVITY

 

          Weighted     Weighted        
    Number of     Average     Average      
    Shares Subject    

Exercise

Price Per

    

Remaining

Contractual

    

Aggregate

Intrinsic

  
    to Options     Share     Life (in years)     Value  
Balance at October 31, 2021     383,668     $ 4.65                  
Granted     -       -                  
Vested     -       -                  
Exercises     (36,667 )   $ 4.65                  
Forfeited or cancelled     (39,834 )   $ 4.65                  
Balance at October 31, 2022     307,167       -                  
Granted     -       -                  
Vested     -       -                  
Exercises     (199,496 )   $ 4.62                  
Forfeited or cancelled     (3,000 )   $ 6.23                  
Balance at October 31, 2023     104,671     $ 4.67       1.41     $ 202,419  
Vested and expected to vest at October 31, 2023     104,671     $ 4.67       1.41     $ 202,419  
Exercisable at October 31, 2023     104,671     $ 4.67       1.41     $ 202,419  

 

The following table summarizes information about stock options outstanding and exercisable under the Company’s Stock Option Plan at October 31, 2023:

 

Options Outstanding     Options Exercisable  
                Weighted                     Weighted  
Range of           Weighted     Average                 Weighted     Average  
Exercise           Average     Remaining     Range of           Average     Remaining  

Prices

per

     Number    

Exercise

Price Per

    

Contractual

Life

    

Exercise

Prices per

     Number    

Exercise

Price Per

    

Contractual

Life

  
Share     Outstanding     Share     (in years)     Share     Exercisable     Share     (in years)  
$ 4.62       101,671     $ 4.62       2.15     $ 4.62       101,671     $ 4.62       2.15  
$ 6.23       3,000     $ 6.23       0.05     $ 6.23       3,000     $ 6.23       0.05  
          104,671     $ 4.67                       104,671     $ 4.67          

 

Unamortized compensation expense in future years is $0.

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2023 and 2022

 

A summary of restricted stock award activity is as follows:

 

  

    Shares     Weighted Average Grant Date Fair Value     Non-Vested     Weighted Average Grant Date Fair Value  
                         
Outstanding at October 31, 2021     122,000     $ 8.80       122,000     $ 8.80  
                                 
Granted     64,687     $ 7.15       64,687     $ 7.15  
Vested     (53,733 )   $ 5.05       (53,733 )   $ 5.05  
Treasury Stock     (5,467 )   $ 5.18       (5,467 )   $ 5.18  
Forfeited or cancelled     (16,981 )   $ 8.43       (16,981 )   $ 8.43  
                                 
Outstanding at October 31, 2022     110,506     $ 8.10       110,506     $ 8.10  
                                 
Granted     100,428     $ 7.10       98,546     $ 6.96  
Vested     (108,568 )   $ 7.91       (108,568 )   $ 7.91  
Treasury Stock     (1,932 )   $ 9.30       (1,932 )   $ 9.30  
Forfeited or cancelled     (13,006 )   $ 5.77       (13,006 )   $ 5.77  
                                 
Outstanding at October 31, 2023     87,428     $ 7.04       85,546     $ 7.04  

 

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that option holders would have realized had all option holders exercised their options on the last trading day of fiscal years 2023 and 2022. The aggregate intrinsic value is the difference between Coda’s closing stock price on the last trading day of the fiscal year and the exercise price, multiplied by the number of in-the-money options.

 

In certain situations, in 2023 and 2022, certain RSAs that vested were net share settled such that the Company withheld common shares with a value equivalent to the employees’ obligation for the applicable income and other employment taxes and remitted the cash to the appropriate taxing authorities. The total shares withheld were 109,154 and 95,866 for 2023 and 2022 and were based on the value of the RSAs on their respective vesting dates as determined by the Company’s closing stock price. The Company has classified the withheld common shares as treasury stock and may issue these shares at a future date.

 

All Stock Options and Restricted Stock Awards have been made pursuant to the 2017 Plan.

 

Total stock-based compensation expense from stock options and restricted stock awards is $645,196 and $1,130,917, respectively for the years ended October 31, 2023, and 2022. As of October 31, 2023, there was approximately $154,539 of total unrecognized stock-based compensation cost related to 87,428 unvested RSAs.

 

Preferred Stock

 

Series A and Series C Preferred Stock

 

The Company is authorized to issue 5,000,000 shares of preferred stock with a par value of $0.001 per share. We had previously designated 50,000 preferred shares as Series A preferred stock and 50,000 preferred shares as Series C preferred stock. Both series have since been eliminated and as of October 31, 2023, there were no shares of Preferred Stock issued or outstanding.

 

 

CODA OCTOPUS GROUP, INC.

Notes to the Consolidated Financial Statements

October 31, 2023 and 2022