Note 12 - Stock-based Compensation

9 Months Ended

Apr. 30, 2024

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 and nine months ended April 30, 2024, 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
Granted		10,000			7.63
Exercised		(878,503	)		1.45
Balance, January 31, 2024		6,649,539			2.01
Granted		40,143			6.70
Exercised		(406,411	)		1.61
Cancelled/Forfeited		(8,600	)		3.45
Expired		(25,000	)		1.44
Balance, April 30, 2024		6,249,671			2.07

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,
	2024		2023		2024		2023
Number of Options Exercised on Cash Basis		202,437		-		492,112		138,537
Number of Options Exercised on Forfeiture Basis		203,974		337,500		1,400,984		2,727,295
Total Number of Options Exercised		406,411		337,500		1,893,096		2,865,832
Number of Shares Issued on Cash Exercise		202,437		-		492,112		138,537
Number of Shares Issued on Forfeiture Basis		142,640		204,693		968,825		1,565,059
Total Number of Shares Issued Upon Exercise of Options		345,077		204,693		1,460,937		1,703,596
Cash Received from Exercise of Stock Options	$	281	$	-	$	681	$	206
Total Intrinsic Value of Options Exercised	$	2,431	$	858	$	9,022	$	6,834

A continuity schedule of our outstanding unvested stock options as of April 30, 2024, and the changes during the period, is as follows:

	Number of Unvested Stock Options			Weighted Average 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
Granted		10,000			5.05
Vested		(429,513	)		2.39
Balance, January 31, 2024		1,255,890			2.28
Granted		40,143			4.45
Cancelled/Forfeited		(8,600	)		2.27
Vested		(29,687	)		2.29
Balance, April 30, 2024		1,257,746			2.35

For the nine months ended  April 30, 2024, 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 to7.6363
Expected Risk Free Interest Rate	3.99% to 4.67%
Expected Volatility	79.30% to 79.57%
Expected Life in Years	5
Expected Dividend Yield	0.00%

As at April 30, 2024, the aggregate intrinsic value of all of our outstanding stock options was estimated at $29,252 (vested: $25,374 and unvested: $3,878).  As at April 30, 2024, our unrecognized compensation cost related to unvested stock options was $1,193, which is expected to be recognized over 0.98 years.

A summary of our stock options outstanding and exercisable as of April 30, 2024, 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	April 30, 2024		Exercise Price		Term (Years)		April 30, 2024		Exercise Price		Term (Years)
$0.91 to $0.99		2,140,500	$	0.92		5.83		2,140,500	$	0.92		5.83
$1.00 to $1.99		1,325,000		1.10		6.21		1,325,000		1.10		6.21
$2.00 to $2.99		537,149		2.26		7.18		537,149		2.26		7.18
$3.00 to $3.99		2,176,879		3.61		8.43		982,401		3.71		8.02
$4.00 to $4.99		7,500		4.56		9.06		2,500		4.48		8.92
$5.00 to $5.99		12,500		5.16		9.42		3,125		5.16		9.42
$6.00 to $6.99		40,143		6.70		9.89		-
$7.00 to $7.63		10,000		7.63		9.73		1,250		7.63		9.73
		6,249,671	$	2.07		6.98		4,991,925	$	1.67		6.51

Restricted Stock Units

A summary of our outstanding and unvested restricted stock units (“RSU”s) as of April 30, 2024, 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		0.31		917
May 1, 2022		39,216		4.25		1.09		265
July 29, 2022		184,023		3.98		1.33		1,242
July 31, 2023		620,386		3.32		2.34		4,188
January 2, 2024		1,166		6.44		2.76		8
January 22, 2024		8,919		7.63		0.82		60
March 13, 2024		2,288		6.49		0.95		15
April 1, 2024		20,000		7.07		3.00		135
		1,011,873	$	3.44		1.83	$	6,830

During the three and nine months ended April 30, 2024, our stock-based compensation related to RSUs was $453 and $1,326 (three and nine months ended April 30, 2023: $283 and $869), respectively.  As at April 30, 2024, our unrecognized compensation costs related to unvested RSUs totaled $1,562, which is expected to be recognized over a period of approximately 1.46 years.

Performance Based Restricted Stock Units

During the three and nine months ended April 30, 2024, our stock-based compensation related to the amortization of target performance based restricted stock units (“PRSU”s) totaled $176 and $529 (three and nine months ended April 30, 2023: $99 and $298), respectively.  As at April 30, 2024, our unrecognized compensation costs relating to unvested PRSUs totaled $978, which is expected to be recognized over a period of approximately 1.93 years.

Stock-Based Compensation

A summary of our stock-based compensation expense as of April 30, 2024, is as follows:

	Three Months Ended				Nine Months Ended
	April 30,				April 30,
	2024		2023		2024		2023
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	-	$	107	$	-	$	382
Amortization of stock option expenses		87		95		302		467
		87		202		302		849
Stock-Based Compensation for Management
Amortization of stock option expenses		120		95		488		323
Amortization of RSU and PRSU expenses		585		346		1,774		1,053
		705		441		2,262		1,376
Stock-Based Compensation for Employees
Common stock issued to employees		-		188		-		675
Amortization of stock option expenses		285		314		1,362		1,441
Amortization of RSU expenses		26		37		61		114
		311		539		1,423		2,230
	$	1,103	$	1,182	$	3,987	$	4,455