Share-based payments reserve

12 Months Ended

Aug. 31, 2025

Notes and other explanatory information [abstract]

Share-based payments reserve

16. Share-based payments reserve

	For the year ended August 31,
	2025			2024
Balance at beginning of year	$	9,151		$	8,807
Share-based compensation expense		2,461			2,018
Transfer on exercise of options and other share-based awards		(2,834	)		(1,674	)
Balance at end of year	$	8,778		$	9,151

Omnibus Equity Incentive Plan

The Company adopted the Omnibus Equity Incentive Plan dated June 26, 2019 (the “Omnibus Plan”), which was approved by the shareholders on August 16, 2019. The Omnibus Plan was subsequently updated and approved by the shareholders on February 27, 2025.

The purposes of the Omnibus Plan are: (a) to advance the interests of the Company by enhancing the ability of the Company and its subsidiaries to attract, motivate and retain employees, officers, directors, and consultants, which either of directors or officers may be consultants or employees; (b) to reward such persons for their sustained contributions; and (c) to encourage such persons to take into account the long-term corporate performance of the Company.

The Omnibus Plan provides for the grant of options, restricted share units, deferred share units and performance share units (collectively, the “Omnibus Plan Awards”).

The Omnibus Plan provides for the grant of other share-based awards to participants (“Other Share-Based Awards”), which awards would include the grant of common shares. All Other Share-Based Awards will be granted by an agreement evidencing the Other Share-Based Awards granted under the Omnibus Plan. Subject to adjustments as provided for under the Omnibus Plan, the maximum number of shares issuable pursuant to Omnibus Plan Awards outstanding at any time under the Omnibus Plan shall not exceed 10% of the aggregate number of common shares outstanding from time to time on a non-diluted basis; provided that the acquisition of common shares by the Company for cancellation shall not constitute non-compliance with the Omnibus Plan for any Omnibus Plan Awards outstanding prior to such purchase of common shares for cancellation.

Share-based compensation expense for the year ended August 31, 2025 totaled $2.5 million (2024: $2.0 million).

As at August 31, 2025, the Company had 6,742,580 (August 31, 2024 – 5,997,632) share awards available for issuance under the Omnibus Equity Incentive Plan.

a) Stock options

Canadian Dollar denominated stock options

	Number of stock options			Weighted average exercise price per share
Balance – August 31, 2024 and August 31, 2023		4,986,000			CAD $0.41
Options exercised(1)		(562,000	)		CAD $0.42
Balance – August 31, 2025		4,424,000			CAD $0.41

⁽¹⁾ The weighted average share price at the time of the option exercise was C$0.53.

Options to purchase common shares carry exercise prices and terms to maturity as follows:

	Number of options						Remaining contractual
Exercise price	Outstanding		Exercisable		Expiry date		life (years)
C$0.40		2,259,000		2,259,000		October 11, 2026		1.1
C$0.43		2,065,000		2,065,000		September 29, 2026		1.1
C$0.35		100,000		100,000		January 2, 2027		1.3
C$0.41(1)		4,424,000		4,424,000				1.1(1)

⁽¹⁾ Total represents weighted average.

US Dollar denominated stock options

	Number of stock options			Weighted average exercise price per share
Balance – August 31, 2024 and August 31, 2023		10,450,000			$0.49
Options granted		2,600,000			$0.36
Options forfeited		(2,550,000	)		$0.49
Balance – August 31, 2025		10,500,000			$0.45

Options to purchase common shares carry exercise prices and terms to maturity as follows:

		Number of options				Expiry		Remaining contractual
Exercise price		Outstanding		Exercisable		date		life (years)
	USD $0.50		5,500,000		4,400,000		August 17, 2027		2.0
	USD $0.45		2,400,000		1,440,000		August 28, 2028		3.0
	USD $0.36		2,600,000		520,000		December 24, 2029		4.3
	USD $0.45(1)		10,500,000		6,360,000				2.8(1)

⁽¹⁾ Total represents weighted average.

The grant date fair value of options was calculated using the Black-Scholes Option Pricing Model with the following assumptions:

	For the year ended August 31, 2025
Grant-date share price		$0.30
Weighted average grant-date fair value		$0.15
Exercise price		$0.36
Risk-free interest rates		4.38%
Expected life of stock options (in years)(1)		5.0
Expected volatility of share price(2)		60%
Expected dividend yield		0%

⁽¹⁾ The expected life of stock options granted is derived from the remaining contractual term.

⁽²⁾ The Company uses historical volatility to estimate the expected volatility of the Company’s share price.

For the year ended August 31, 2025, share-based payment expenses related to stock options totaled $0.5 million (2024 – $0.7 million).

b) Restricted Share Units:

The following table sets out activity with respect to outstanding RSUs:  

	Number of RSUs
Balance – August 31, 2023		3,473,077
Granted		57,432
Exercised		(2,032,124	)
Balance – August 31, 2024		1,498,385
Granted		7,102,103
Forfeited		(640,074	)
Exercised		(2,552,488	)
Balance – August 31, 2025		5,407,926

The grant date fair value of the RSUs generally approximates the cost of purchasing the shares in the open market. Once vested, the common shares are distributed, less any amount due for taxes, to settle the obligation.

For the year ended August 31, 2025, share-based payment expenses related to RSUs totaled $1.5 million (2024 - $1.0 million).