Note 13 - Capital Stock

6 Months Ended

Jan. 31, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 13: CAPITAL STOCK

Equity Financing

On May 14, 2021, we entered into an at-the-market offering agreement (the “May 2021 ATM Offering Agreement”) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the “ATM Managers”), under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $100 million through the ATM Managers (the “May 2021 ATM Offering”).

On November 26, 2021, we filed a prospectus supplement to our Registration Statement on Form S-3 (the “2021 Shelf”) with respect to the continuation of the May 2021 ATM Offering Agreement with the ATM Managers under which we may, if eligible, from time to time, sell shares of our common stock having an aggregate offering price of up to $100 million through the ATM Managers selected by us (the “November 2021 ATM Offering”; and, collectively with May 2021 ATM Offering, the “2021 ATM Offerings”).

During the three and six months ended January 31, 2022, we issued 6,655,295 and 27,399,173 shares, respectively, of the Company’s common stock under our May 2021 ATM Offering for net cash proceeds of $28,919,064 and $91,590,187, respectively.

During the three months ended January 31, 2022, we issued 11,096,363 shares of the Company’s common stock under our November 2021 ATM Offering for net cash proceeds of $39,053,602.

Subsequent to January 31, 2022, we issued 4,460,000 shares of the Company’s common stock under our November 2021 ATM Offering from February 1, 2022 to March 3, 2022 for net cash proceeds of $16,547,026.

Share Purchase Warrants

A continuity schedule of outstanding share purchase warrants for the three and six months ended January 31, 2022, is as follows:

	Number of Warrants			Weighted Average Exercise Price
Balance, July 31, 2021		5,387,323		$	1.90
Exercised		(491,849	)		1.85
Balance, October 31, 2021		4,895,474			1.91
Exercised		(572,850	)		1.99
Balance, January 31, 2022		4,322,624		$	1.90

During the three and six months ended January 31, 2022, we received cash proceeds of $1,141,903 and $2,052,231, respectively, from the exercise of share purchase warrants.

A summary of share purchase warrants outstanding and exercisable as of January 31, 2022, is as follows:

Weighted Average Exercise Price		Number of Warrants Outstanding		Weighted Average Remaining Contractual Life (Years)		Expiry Date
$	1.80		4,115,806		0.64	September 23, 2022
	1.64		25,000		1.30	May 21, 2023
	4.13		181,818		4.18	April 5, 2026
$	1.90		4,322,624		0.80

Stock Options

As of January 31, 2022, we had one stock option plan, our 2021 Stock Incentive Plan, which superseded and replaced our 2020 Stock Incentive Plan.

A continuity schedule of outstanding stock options for the underlying shares for the three and six months ended January 31, 2022, is as follows:

	Number of Stock Options			Weighted Average Exercise Price
Balance, July 31, 2021		10,404,333		$	1.21
Granted		10,000			2.89
Exercised		(1,030,543	)		1.18
Expired		(60,000	)		2.78
Balance, October 31, 2021		9,323,790			1.20
Exercised		(244,834	)		1.27
Expired		(15,000	)		1.36
Balance, January 31, 2022		9,063,956		$	1.20

During the three and six months ended January 31, 2022 and 2021, the total number of stock options exercised, the number of shares issued upon exercise of those options and the cash received from such exercises are as follows:

	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
Number of Options Exercised on Cash Basis		57,750		177,500		402,748		187,500
Number of Options Exercised on Forfeiture Basis		187,084		923,282		872,629		941,782
Total Number of Options Exercised		244,834		1,100,782		1,275,377		1,129,282
Number of Shares Issued on Cash Exercise		57,750		177,500		402,748		187,500
Number of Shares Issued on Forfeiture Basis		135,595		382,028		544,587		385,560
Total Number of Shares Issued Upon Exercise of Options		193,345		559,528		947,335		573,060
Cash Received from Exercise of Stock Options	$	63,404	$	212,125	$	447,183	$	221,434
Total Intrinsic Value of Options Exercised	$	889,296	$	822,237	$	2,794,512	$	828,615

A continuity schedule of outstanding unvested stock options as of January 31, 2022, and the changes during the period, is as follows:

	Number of Unvested Stock Options			Weighted Average Grant-Date Fair Value
Balance, July 31, 2021		3,891,207		$	0.66
Granted		10,000			1.73
Vested		(265,427	)		0.87
Balance, October 31, 2021		3,635,780			0.64
Vested		(1,069,948	)		0.55
Balance, January 31, 2022		2,565,832		$	0.68

As of January 31, 2022, unrecognized stock-based compensation expense related to the unvested portion of stock options totaled $796,083 to be recognized over the next 0.97 years.

As of January 31, 2022, the aggregate intrinsic value under the provisions of ASC 718 of all outstanding stock options was $12,815,860 (vested: $9,560,154 and unvested: $3,255,706). 

A summary of stock options outstanding and exercisable as of January 31, 2022, is as follows:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Outstanding at January 31, 2022		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Exercisable at January 31, 2022		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
$0.80 to $0.99		4,794,247	$	0.92		8.06		3,840,186	$	0.92		7.96
$1.00 to $1.49		2,013,875		1.16		5.78		1,130,541		1.21		3.69
$1.50 to $2.89		2,255,834		1.82		4.88		1,527,397		1.63		2.70
		9,063,956	$	1.20		6.76		6,498,124	$	1.14		5.98

Restricted Stock Units

A summary of outstanding and unvested restricted stock units ( the “RSU”s) as of January 31, 2022, is as follows:

Grant Date	Number of Restricted Stock Units		Grant Date Fair Value		Remaining Life (Years)		Aggregate Intrinsic Value
July 30, 2019		154,999	$	0.94		0.49	$	404,547
July 16, 2020		434,996		0.91		1.45		1,135,340
July 21, 2021		407,617		2.15		2.47		1,063,880
		997,612	$	1.42		1.72	$	2,603,767

During the three and six months ended January 31, 2022, stock-based compensation relating to RSUs totaled $188,821 and $377,642 (three and six months ended January 31, 2021: $271,834 and $543,668), respectively. As of January 31, 2022, outstanding unvested RSUs totaled 997,612 ( July 31, 2021: 997,612), and unrecognized compensation costs relating to unvested RSUs totaled $754,729, which is expected to be recognized over a period of approximately 1.51 years.

Performance Based Restricted Stock Units

During the three and six months ended January 31, 2022, stock-based compensation relating to target performance based restricted stock units (the “PRSU”s) totaled $73,269 and $146,689 (three and six months ended January 31, 2021: $37,544 and $75,088), respectively. As of January 31, 2022, outstanding unvested PRSUs totaled 1,250,451 ( July 31, 2021: 1,250,451), and unrecognized compensation costs relating to unvested PRSUs totaled $548,459, which is expected to be recognized over a period of approximately 1.53 years.

Stock-Based Compensation

A summary of stock-based compensation expense is as follows:

	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	201,115	$	119,847	$	505,702	$	239,317
Amortization of stock option expenses		56,802		65,774		136,575		169,702
		257,917		185,621		642,277		409,019
Stock-Based Compensation for Management
Amortization of stock option expenses		125,608		206,317		291,157		460,048
Amortization of RSU and PRSU expenses		262,090		309,378		524,331		618,756
		387,698		515,695		815,488		1,078,804
Stock-Based Compensation for Employees
Common stock issued to employees		339,094		261,642		612,007		474,512
Amortization of stock option expenses		209,497		255,100		505,094		634,238
		548,591		516,742		1,117,101		1,108,750
	$	1,194,206	$	1,218,058	$	2,574,866	$	2,596,573