Company: ANIX
Filing Date: 2025-09-10
Form Type: 10-Q
Source: 0001493152-25-013000
Chunk: 18

Company: Anixa Biosciences Inc
Filing Date: 2025-09-10
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 to hold to maturity. These securities are
recorded at amortized cost, net of any applicable discount which is amortized to interest income, and are accounted for as held-to-maturity
securities. The Company’s Bitcoin Assets are measured at fair value based on quoted prices on active exchanges. The Company recognizes
changes in the fair value of Bitcoin Assets as gains or losses in the statement of operations during the period in which they occur.

3.
STOCK-BASED COMPENSATION

The
Company maintains stock equity incentive plans under which the Company may grant incentive stock options, non-qualified stock options,
stock appreciation rights, stock awards, performance awards, or stock units to employees, directors and consultants.

Stock
Option Compensation Expense

We
account for stock options granted to employees, directors and consultants using the accounting guidance in ASC 718, Stock Compensation.
We estimate the fair value of service-based stock options on the date of grant, using the Black-Scholes pricing model, and recognize
compensation expense over the requisite service period of the grant. We recorded stock-based compensation expense related to service-based
stock options granted to employees and directors of approximately $829,000 and $1,094,000 during the three months ended July 31, 2025
and 2024, respectively, and approximately $2,822,000 and $3,440,000 during the nine months ended July 31, 2025 and 2024, respectively.

The
compensation cost for service-based stock options granted to consultants is measured at the grant date, based on the fair value of the
award using the Black-Scholes pricing model, and is expensed on a straight-line basis over the requisite service period (the vesting
period of the stock option) which is one to three years. We recorded stock-based consulting expense related to stock options granted
to consultants of approximately $26,000 and $23,000 during the three months ended July 31, 2025 and 2024, respectively, and approximately
$77,000, and $101,000, during the nine months ended July 31, 2025 and 2024, respectively.

    10

Stock
Option Activity

During
the three months ended July 31, 2025 and 2024, we granted options to purchase 75,000 shares and 0 shares of common stock, respectively,
and during the nine months ended July 31, 2025 and 2024,