Note 13 - Capital Stock

9 Months Ended

Apr. 30, 2023

Notes to Financial Statements

Equity [Text Block]

NOTE 13: CAPITAL STOCK

Equity Financing

On May 17, 2021, we filed a Form S-3 shelf registration statement under the United States Securities Act of 1933, as amended (the “Securities Act”), which was declared effective by the SEC on June 1, 2021, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of up to an aggregate offering amount of $200 million (the “2021 Shelf”), which included an at-the-market offering agreement prospectus (the “May 2021 ATM Offering”) covering the offering, issuance and sale of up to a maximum offering of $100 million as part of the $200 million under the 2021 Shelf.

On May 14, 2021, we entered into an at-the-market offering agreement (the “2021 ATM Offering Agreement”) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the “2021 ATM Managers”) as set forth in the 2021 ATM Offering Agreement 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 2021 ATM Managers selected by us.

On November 26, 2021, we filed a prospectus supplement to our 2021 Shelf with respect to the continuation of the May 2021 ATM Offering Agreement with the 2021 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 an additional $100 million for a total of $200 million through the 2021 ATM Managers selected by us (the “November 2021 ATM Offering”; and, collectively with the May 2021 ATM Offering, the “2021 ATM Offering”).

On November 16, 2022, we filed a Form S-3 automatic shelf registration statement under the Securities Act, which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for and units which include common stock, debt securities, warrants or any combination thereof (the “2022 Shelf”), which included an at-the-market offering agreement prospectus (the “2022 ATM Offering”; and, collectively, with the 2021 ATM Offering, the “ATM Offerings”) covering the offering, issuance and sale of up to a maximum offering of $300 million under the 2022 Shelf.

On November 16, 2022, we entered into an at-the-market offering agreement (the “2022 ATM Offering Agreement”) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the “2022 ATM Managers”) as set forth in the 2022 ATM Offering Agreement under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $300 million through the 2022 ATM Managers selected by us.

During the three and nine months ended April 30, 2023, we issued nil and 6,201,553 shares of the Company’s common stock under the 2021 ATM Offering for net cash proceeds of nil and $25,526, respectively.

During the three and nine months ended April 30, 2023, we issued 2,912,000 and 8,969,700 shares of the Company’s common stock under the 2022 ATM Offering for net cash proceeds of $10,599 and $32,893, respectively.

Share Purchase Warrants

A continuity schedule of our outstanding share purchase warrants for the three and nine months ended April 30, 2023, is as follows:

	Number of Warrants			Weighted Average Exercise Price
Balance, July 31, 2022		3,615,454		$	1.92
Issuance of Replacement Warrants (Note 3,13)		4,660,580			2.84
Exercised		(3,410,898	)		1.80
Expired		(27,550	)		1.80
Balance, October 31, 2022		4,837,586			2.85
Exercised		(45,000	)		1.46
Balance, January 31, 2023		4,792,586			2.93
Balance, April 30, 2023		4,792,586		$	2.88

A summary of our share purchase warrants outstanding and exercisable as of April 30, 2023, is as follows:

Weighted Average Exercise Price		Number of Warrants Outstanding		Weighted Average Remaining Contractual Life (Years)		Expiry Date
$	1.72		144,194		0.05	May 20, 2023
	1.64		25,000		0.06	May 21, 2023
	1.43		766,362		0.09	June 2, 2023
	3.17		3,675,212		1.36	September 7, 2024
	4.13		181,818		2.93	April 5, 2026
$	2.88		4,792,586		1.17

As at April 30, 2023, 4,585,768 Replacement Warrants, which were issued in connection with UEX Acquisition and dominated in Canadian dollars, remained outstanding.

During the nine months ended April 30, 2023, we received cash proceeds totaling $6,206 from the exercise of share purchase warrants.

Subsequent to April 30, 2023, 928,188 warrants with expiry dates from May 20 to June 2, 2023 were exercised and proceeds of $1,060 were received.

Stock Options

As of April 30, 2023, 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 the 2021 Stock Incentive Plan.

A continuity schedule of our outstanding stock options for the three and nine months ended April 30, 2023, is as follows:

	Number of Stock Options			Weighted Average Exercise Price
Balance, July 31, 2022		8,880,527		$	1.58
Issuance of Replacement Options (Note 3)		2,301,750			1.90
Granted		5,000			4.23
Exercised		(2,331,222	)		1.61
Balance, October 31, 2022		8,856,055			1.65
Granted		15,464			3.78
Exercised		(197,110	)		2.10
Balance, January 31, 2023		8,674,409			1.65
Granted		100,000			3.22
Exercised		(337,500	)		1.61
Balance, April 30, 2023		8,436,909		$	1.67

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

	Three Months Ended April 30,				Nine Months Ended April 30,
	2023		2022		2023		2022
Number of Options Exercised on Cash Basis		-		404,832		138,537		807,580
Number of Options Exercised on Forfeiture Basis		337,500		777,773		2,727,295		1,650,402
Total Number of Options Exercised		337,500		1,182,605		2,865,832		2,457,982
Number of Shares Issued on Cash Exercise		-		404,832		138,537		807,580
Number of Shares Issued on Forfeiture Basis		204,693		595,478		1,565,059		1,140,065
Total Number of Shares Issued Upon Exercise of Options		204,693		1,000,310		1,703,596		1,947,645
Cash Received from Exercise of Stock Options	$	-	$	404	$	206	$	851
Total Intrinsic Value of Options Exercised	$	858	$	4,891	$	6,834	$	7,685

A continuity schedule of our outstanding unvested stock options as of April 30, 2023, and the changes during the period, is as follows:

	Number of Unvested Stock Options			Weighted Average Grant-Date Fair Value
Balance, July 31, 2022		2,186,154		$	1.79
Issuance of Replacement Options (Note 3)		2,301,750			1.75
Granted		5,000			2.70
Vested		(2,467,341	)		1.79
Balance, October 31, 2022		2,025,563			1.74
Granted		15,464			2.40
Vested		(394,858	)		1.78
Balance, January 31, 2023		1,646,169		$	1.74
Granted		100,000			2.04
Vested		(15,680	)		1.56
Balance, April 30, 2023		1,730,489		$	1.76

As at April 30, 2023, the aggregate intrinsic value of all of our outstanding stock options was estimated at $9,666 (vested: $8,903 and unvested: $763). As at April 30, 2023, our unrecognized compensation cost related to unvested stock options was $1,219, which is expected to be recognized over 0.89 years.

A summary of our stock options outstanding and exercisable as of April 30, 2023, is as follows:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Outstanding at April 30, 2023		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Exercisable at April 30, 2023		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
$0.80 to $0.99		3,592,124	$	0.92		6.78		3,592,124	$	0.92		6.78
$1.00 to $1.99		2,442,500		1.29		4.12		2,000,832		1.33		3.44
$2.00 to $2.99		918,954		2.22		7.96		687,183		2.22		7.87
$3.00 to $3.99		1,478,331		3.76		8.37		425,031		3.78		7.61
$4.00 to $4.23		5,000		4.23		9.49		1,250		4.23		9.49
		8,436,909	$	1.67		6.42		6,706,420	$	1.36		5.95

Restricted Stock Units

A summary of our outstanding and unvested restricted stock units (“RSU”s) as of April 30, 2023, 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		0.21	$	568
July 21, 2021		271,746		2.15		1.23		709
May 01, 2022		58,824		4.25		2.01		154
July 29, 2022		287,966		3.98		2.25		752
		836,034	$	2.61		1.37	$	2,183

During the three and nine months ended April 30, 2023, our stock-based compensation related to RSUs were $283 and $869 (three and nine months ended April 30, 2022: $183 and $560), respectively. As at April 30, 2023, our unrecognized compensation costs related to unvested RSUs totaled $879, which is expected to be recognized over a period of approximately 1.40 years.

Performance Based Restricted Stock Units

During the three and nine months ended April 30, 2023, our stock-based compensation relating to amortization of target performance based restricted stock units (“PRSU”s) totaled $99 and $298 (three and nine months ended April 30, 2022: $73 and $220), respectively. As at April 30, 2023, our outstanding unvested PRSUs were 734,582 ( July 31, 2022: 734,582), and our unrecognized compensation costs relating to unvested PRSUs totaled $683 ( July 31, 2022: $981), which is expected to be recognized over a period of approximately 1.71 years.

Stock-Based Compensation

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

	Three Months Ended April 30,				Nine Months Ended April 30,
	2023		2022		2023		2022
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	107	$	158	$	382	$	664
Amortization of stock option expenses		95		37		467		174
		202		195		849		838
Stock-Based Compensation for Management
Amortization of stock option expenses		95		91		323		382
Amortization of RSU and PRSU expenses		346		256		1,053		780
		441		347		1,376		1,162
Stock-Based Compensation for Employees
Common stock issued to employees		188		282		675		894
Amortization of stock option expenses		314		127		1,441		632
Amortization of RSU expenses		37		-		114		-
		539		409		2,230		1,526
	$	1,182	$	951	$	4,455	$	3,526