Note 12 - Stock-based Compensation

3 Months Ended

Oct. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 12: STOCK-BASED COMPENSATION

Stock Options

A continuity schedule of our outstanding stock options for the three months ended October 31, 2023, is as follows:

	Number of Stock			Weighted Average
	Options			Exercise Price
Balance, July 31, 2023		8,326,983		$	1.92
Granted		17,500			5.04
Exercised		(608,182	)		1.69
Cancelled/Forfeited		(191,259	)		1.59
Expired		(27,000	)		3.69
Balance, October 31, 2023		7,518,042			1.94

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

	Three Months Ended October 31,
	2023		2022
Number of Options Exercised on Cash Basis		189,250		138,537
Number of Options Exercised on Forfeiture Basis		418,932		2,192,685
Total Number of Options Exercised		608,182		2,331,222
Number of Shares Issued on Cash Exercise		189,250		138,537
Number of Shares Issued on Forfeiture Basis		256,611		1,266,064
Total Number of Shares Issued Upon Exercise of Options		445,861		1,404,601
Cash Received from Exercise of Stock Options	$	264	$	206
Total Intrinsic Value of Options Exercised	$	2,030	$	5,595

A continuity schedule of our outstanding unvested stock options as of October 31, 2023, and the changes during the period, is as follows:

	Number of Unvested			Weighted Average
	Stock Options			Grant-Date Fair Value
Balance, July 31, 2023		1,803,265		$	2.28
Granted		17,500			3.36
Cancelled/Forfeited		(12,300	)		2.37
Vested		(133,062	)		2.18
Balance, October 31, 2023		1,675,403			2.29

As at  October 31, 2023, the fair value of the stock options granted was estimated using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy:

Exercise Price	4.722 to5.2020
Expected Risk Free Interest Rate	4.39% to 4.67%
Expected Volatility	79.42% to 79.53%
Expected Life in Years	5
Expected Dividend Yield	0.00%

As at October 31, 2023, the aggregate intrinsic value of all of our outstanding stock options was estimated at $30,144 (vested: $26,166 and unvested: $3,978). As at October 31, 2023, our unrecognized compensation cost related to unvested stock options was $2,156, which is expected to be recognized over 1.15 years.

A summary of our stock options outstanding and exercisable as of October 31, 2023, is as follows:

	Options Outstanding						Options Exercisable
					Weighted						Weighted
					Average						Average
Range of			Weighted		Remaining				Weighted		Remaining
Exercise	Outstanding at		Average		Contractual		Exercisable at		Average		Contractual
Prices	October 31, 2023		Exercise Price		Term (Years)		October 31, 2023		Exercise Price		Term (Years)
$0.80 to $0.99		3,013,687	$	0.92		6.23		3,013,687	$	0.92		6.23
$1.00 to $1.99		1,390,500		1.11		6.47		1,390,500		1.11		6.47
$2.00 to $2.99		715,344		2.24		7.57		715,344		2.24		7.57
$3.00 to $3.99		2,376,011		3.60		8.84		720,608		3.70		8.27
$4.00 to $4.23		10,000		4.48		9.42		2,500		4.23		8.98
$5.00 to $5.20		12,500		5.16		9.91		-		-		-
		7,518,042	$	1.94		7.23		5,842,639	$	1.47		6.70

Restricted Stock Units

A summary of our outstanding and unvested restricted stock units (“RSU”s) as of October 31, 2023, is as follows:

	Number of
	Restricted Stock		Grant Date		Remaining Life		Aggregate
Grant Date	Units		Fair Value		(Years)		Intrinsic Value
July 21, 2021		135,875		2.15		0.72		808
May 1, 2022		39,216		4.25		1.50		233
July 29, 2022		184,023		3.98		1.75		1,095
July 31, 2023		620,386		3.32		2.75		3,691
		979,500	$	3.32		2.23	$	5,827

During the three months ended October 31, 2023, our stock-based compensation related to RSUs was $435 (three months ended October 31, 2022: $293).  As at October 31, 2023, our unrecognized compensation costs related to unvested RSUs totaled $2,220 ( July 31, 2023: $2,656), which is expected to be recognized over a period of approximately 1.69 years.

Performance Based Restricted Stock Units

During the three months ended October 31, 2023, stock-based compensation related to the amortization of target performance based restricted stock units (“PRSU”s) totaled $176 (three months ended October 31, 2022: $99).  As at October 31, 2023, our outstanding unvested PRSUs were 1,286,505 ( July 31, 2023: 1,286,505), and our unrecognized compensation costs relating to unvested PRSUs totaled $1,331 ( July 31, 2023: $1,507), which is expected to be recognized over a period of approximately 2.25 years.

Stock-Based Compensation

A summary of our stock-based compensation expense as of October 31, 2023, is as follows:

	Three Months Ended
	October 31,
	2023		2022
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	-	$	148
Amortization of stock option expenses		121		228
		121		376
Stock-Based Compensation for Management
Amortization of stock option expenses		208		133
Amortization of RSU and PRSU expenses		594		354
		802		487
Stock-Based Compensation for Employees
Common stock issued to employees		-		247
Amortization of stock option expenses		632		673
Amortization of RSU expenses		17		38
		649		958
	$	1,572	$	1,821