Note 15 - Stock-based Compensation

12 Months Ended

Jul. 31, 2022

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 15: STOCK-BASED COMPENSATION

Stock Options

As at July 31, 2022, we had one stock option plan, our 2022 Stock Incentive Plan (the “2022 Plan”), which superseded and replaced the Company’s 2021 Stock Incentive Plan (collectively the “Stock Incentive Plan”), such that no further shares are issuable under the prior plan.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, we granted stock options under the Stock Incentive Plan to certain of our directors, officers, employees and consultants to purchase an aggregate of 1,279,692, 959,588 and 4,838,900 shares of the Company, respectively, which are subject to a 24-month vesting provision whereby, at the end of each of the first three and six months after the grant date, 12.5% of the total stock options become exercisable, and whereby at the end of each of 12, 18 and 24 months after the grant date, 25% of the total stock options become exercisable. In addition, during Fiscal 2020, we granted performance stock options (the “PSO”s) under the Stock Incentive Plan to certain of our directors and officers to purchase an aggregate of 1,325,000 shares of the Company. The PSOs are subject to a three-year vesting provision whereby one-third of the total PSOs become exercisable at the end of each of the first, second and third year after the date of grant.

The fair value of these stock options was estimated at the date of grant, using the Black-Scholes Valuation Model, with the following weighted average assumptions:

	Year Ended July 31,
	2022			2021			2020
Expected Risk Free Interest Rate		2.73	%		0.70	%		0.40	%
Expected Volatility		78.75	%		72.57	%		60.48	%
Expected Life in Years		4.96			5.00			4.93
Expected Dividend Yield		0	%		0	%		0	%
Weighted-Average Grant Date Fair Value	$	2.45		$	1.30		$	0.45

A continuity schedule of outstanding stock options as at July 31, 2022, and the changes during the fiscal year periods, is as follows:

	Number of Stock Options			Weighted Average Exercise Price
Balance, July 31, 2019		15,738,350		$	1.30
Granted		6,163,900			0.95
Cancelled/Forfeited		(179,344	)		1.02
Expired		(6,208,156	)		1.39
Balance, July 31, 2020		15,514,750			1.13
Granted		959,588			2.21
Exercised		(4,705,005	)		1.09
Expired		(1,365,000	)		1.48
Balance, July 31, 2021		10,404,333			1.21
Granted		1,279,692			3.80
Exercised		(2,728,498	)		1.17
Expired		(75,000	)		2.50
Balance, July 31, 2022		8,880,527		$	1.58

The table below sets forth the number of shares issued and cash received upon exercise of stock options:

	Year Ended July 31,
	2022		2021		2020
Number of Options Exercised on Cash Basis		872,580		1,734,127		-
Number of Options Exercised on Forfeiture Basis		1,855,918		2,970,878		-
Total Number of Options Exercised		2,728,498		4,705,005		-
Number of Shares Issued on Cash Exercise		872,580		1,734,127		-
Number of Shares Issued on Forfeiture Basis		1,279,515		1,592,128		-
Total Number of Shares Issued Upon Exercise of Options		2,152,095		3,326,255		-
Cash Received from Exercise of Stock Options	$	934	$	1,916	$	-
Total Intrinsic Value of Options Exercised	$	8,336	$	6,882	$	-

A continuity schedule of outstanding unvested stock options at July 31, 2022, and the changes during the fiscal year periods, is as follows:

	Number of Unvested Stock Options			Weighted Average Grant-Date Fair Value
Balance, July 31, 2019		3,310,600		$	0.59
Granted		6,163,900			0.45
Vested		(2,590,154	)		0.60
Cancelled/Forfeited		(86,875	)		0.43
Balance, July 31, 2020		6,797,471			0.46
Granted		959,588			1.30
Vested		(3,865,852	)		0.47
Balance, July 31, 2021		3,891,207			0.66
Granted		1,279,692			2.45
Vested		(2,984,745	)		0.59
Balance, July 31, 2022		2,186,154		$	1.79

As at July 31, 2022, the aggregate intrinsic value of all outstanding stock options granted was estimated at $23,292 (vested: $20,469 and unvested: $2,823). As at July 31, 2022, the unrecognized compensation cost related to unvested stock options was $3,196 expected to be recognized over 1.17 years.

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

			Options Outstanding						Options Exercisable
Range of Exercise Prices			Outstanding at July 31, 2022		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Exercisable at July 31, 2022		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
$0.80	to	$0.99		3,968,499	$	0.92		7.55		3,968,499	$	0.92		7.55
$1.00	to	$1.99		2,738,875		1.29		4.23		2,297,207		1.32		3.52
$2.00	to	$2.99		903,461		2.22		8.95		416,167		2.22		8.94
$3.00	to	$3.98		1,269,692		3.80		9.75		12,500		3.18		4.91
				8,880,527	$	1.58		6.98		6,694,373	$	1.14		6.25

Restricted Stock Units

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, the Company granted RSUs to certain directors and officers of the Company under our Stock Incentive Plan. RSUs granted during Fiscal 2022 and Fiscal 2021 have a vesting period of three years from the grant date, whereby one-third of the RSUs will vest at the end of the first, second and third year, respectively, from the date of grant. RSUs granted during Fiscal 2020 have a vesting period of three years from the grant date, whereby one-half of the RSUs will vest at the end of the first year, and one-third of the remaining one-half will vest at the end of each of the first, second and third year, respectively, from the date of grant. The fair value of these RSUs were determined using the share prices at the respective grant dates.

A continuity schedule of outstanding RSUs as at July 31, 2022, and the changes during the fiscal year end periods, is as follows:

	Number of Restricted Stock Units			Weighted Average Grant Date Fair Value
Balance, July 31, 2019		465,000		$	0.94
Granted		1,305,000			0.91
Vested		(155,000	)		0.94
Balance, July 31, 2020		1,615,000			0.92
Granted		407,617			2.15
Vested		(1,025,005	)		0.91
Balance, July 31, 2021		997,612			1.42
Granted		346,790			4.03
Vested		(508,368	)		1.25
Balance, July 31, 2022		836,034		$	2.61

A summary of outstanding unvested RSUs as at July 31, 2022, is as follows:

Grant Date	Number of Restricted Stock Units		Grant Date Fair Value		Remaining Life (Years)		Aggregate Intrinsic Value
July 16, 2020		217,498	$	0.91		0.96	$	913
July 21, 2021		271,746		2.15		1.98		1,141
May 01, 2022		58,824		4.25		2.75		247
July 29, 2022		287,966		3.98		3.00		1,209
		836,034	$	2.61		2.12	$	3,510

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, the number of RSUs vested, the net RSU shares issued and the net RSU shares forfeited as payments of tax withholding amounts are as follows:

	Year Ended July 31,
	2022		2021		2020
Number of RSUs vested		508,368		1,025,005		155,000
Number of net RSU shares issued		267,681		536,361		105,844
Number of RSU shares forfeited as payments of withholding amount		240,687		488,644		49,156

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, stock-based compensation relating to the RSUs were $780, $1,060 and $309, respectively. As at July 31, 2022, unrecognized compensation costs related to unvested RSUs totaled $1,749, which is expected to be recognized over a period of approximately 1.85 years.

Performance Based Restricted Stock Units

During Fiscal 2022 and Fiscal 2021, the Company granted 120,816 and 246,475 target PRSUs (the “Target PRSUs”) and allocated up to the same amount of respective PRSUs (the “Additional PRSUs”, and together with the Target PRSUs, the “PRSUs”) respectively, to the Company’s executive officers under our Stock Incentive Plan. These PRSUs vest based on certain performance goals measured by the Company’s share price relative to the Global X Uranium ETF share price over a three-year period (the “Performance Period”). The PRSUs vest based on relative Total Shareholder Return’s (“TSR”) (stock price appreciation) over the measurement period from the grant date of the PRSUs (the “Measurement Period”). No PRSUs were granted in Fiscal 2020.

These PRSUs have a market condition considered in the determination of the fair value such that the ultimate number of PRSUs that vest will be determined by the Company’s share performance relative to the Global X Uranium ETF share price from the grant date over the Performance Period. Depending on the TSR performance, the percentage eligible to vest at the end of the respective Measurement Period would range from 0% to 200% of the Target PRSUs for that Measurement Period. The vested PRSUs will accrue annually and will not settle until the end of the Performance Period. Each vested PRSU converts into one common share of the Company at the end of the Performance Period with no cash settlement alternatives. The PRSUs carry neither rights to dividends nor voting rights. The Company accounts for the PRSUs as an equity-settled plan.

The fair values of the Target PRSUs granted in Fiscal 2022 and Fiscal 2021 were valued using the Monte Carlo Simulation Model at the date of grant with the following principal assumptions. No PRSUs were granted in Fiscal 2020.

	Year Ended July 31,
	2022			2021
Expected Risk Free Interest Rate		2.80	%		0.39	%
Expected Volatility		90.90	%		78.03	%
Expected Dividend Yield		0	%		0	%
Expected Life in Years		3			3
Correlation		76.89	%		66.02	%
Grant Price	$	3.98		$	2.15
Grant Date Fair Value	$	4.80		$	2.48

During Fiscal 2022, an aggregate of 445,000 PRSUs vested based on UEC’s share performance relative to the Global X Uranium ETF. These vested PRSUs, together with 222,500 and 90,001 PRSUs vested and accrued during Fiscal 2021 and Fiscal 2020, respectively, were settled in July 2022, which was the end of three-year Performance Period. As a result, 757,501 PRSU shares vested and were settled, with 361,122 net PRSU shares being issued and 396,379 net PRSU shares being forfeited as payment of tax withholding amounts.

A continuity schedule of unvested PRSUs comprised of Target PRSUs and Additional PRSUs as at July 31, 2022, and the changes during the fiscal year end periods, is as follows:

	Number of Unvested PRSUs			Weighted Average Grant Date Fair Value
Balance, July 31, 2019		890,000		$	1.15
Forfeited		(132,499	)		1.15
Balance, July 31, 2020		757,501			1.15
Granted		492,950			2.48
Balance, July 31, 2021		1,250,451			1.67
Granted		241,632			4.80
Vested		(757,501	)		1.15
Balance, July 31, 2022		734,582		$	3.24

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, stock-based compensation related to amortization of PRSUs totaled $293, $156 and $274, respectively. As at July 31, 2022, unrecognized compensation costs relating to unvested PRSUs totaled $981, which is expected to be recognized over a period of approximately 2.41 years.

Stock-Based Compensation

A summary of stock-based compensation expense for Fiscal 2022, Fiscal 2021 and Fiscal 2020, is as follows:

	Year Ended July 31,
	2022		2021		2020
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	770	$	877	$	540
Amortization of stock option expenses		220		288		240
		990		1,165		780
Stock-Based Compensation for Management
Common stock issued to management		-		135		225
Amortization of stock option expenses		471		774		645
Amortization of RSU and PRSU expenses		1,035		1,215		583
		1,506		2,124		1,453
Stock-Based Compensation for Employees
Common stock issued to employees		1,187		1,200		635
Amortization of stock option expenses		960		982		640
Amortization of RSU expenses		38		-		-
		2,185		2,182		1,275
Settlement of share issuance obligation		-		-		(15	)
	$	4,681	$	5,471	$	3,493