Note 17 - Stock-based Compensation

12 Months Ended

Jul. 31, 2024

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 17: STOCK-BASED COMPENSATION

Stock Options

During Fiscal 2024, Fiscal 2023 and Fiscal 2022, we granted stock options under our stock incentive plans to certain of our directors, officers, employees and consultants to purchase an aggregate of 483,461, 3,507,004 and 1,279,692 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 2023, we granted performance stock options (“PSO”s) under our current stock incentive plan to certain of our directors and officers to purchase an aggregate up to 150,367 shares of the Company.  No PSOs were granted in Fiscal 2024 and Fiscal 2022.  The PSOs granted in Fiscal 2023 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,
	2024 (1)			2023			2022
Expected Risk Free Interest Rate		4.05	%		4.14	%		2.73	%
Expected Volatility		78.83	%		79.43	%		78.75	%
Expected Life in Years		5.00			4.90			4.96
Expected Dividend Yield		0	%		0	%		0	%
Weighted-Average Grant Date Fair Value	$	3.71		$	2.18		$	2.45

⁽¹⁾ The assumptions used for the fair value measurement of the Replacement Options are excluded in the table below as they have been separately disclosed in Note 3.

A continuity schedule of outstanding stock options as at July 31, 2024, and the changes during the fiscal year periods, is as follows:

	Number of Stock Options			Weighted Average Exercise Price
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
Granted		3,507,004			2.46
Exercised		(3,995,897	)		1.63
Forfeited		(24,651	)		3.18
Expired		(40,000	)		1.53
Balance, July 31, 2023		8,326,983			1.92
Granted		483,461			5.62
Exercised		(3,451,746	)		1.33
Forfeited		(203,359	)		1.70
Expired		(52,000	)		2.62
Balance, July 31, 2024		5,103,339		$	2.66

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

	Year Ended July 31,
	2024		2023		2022
Number of Options Exercised on Cash Basis		492,112		365,537		872,580
Number of Options Exercised on Non-Cash Basis		2,959,634		3,630,360		1,855,918
Total Number of Options Exercised		3,451,746		3,995,897		2,728,498
Number of Shares Issued on Cash Exercise		492,112		365,537		872,580
Number of Shares Issued on Non-Cash Basis		1,953,636		1,986,007		1,279,515
Total Number of Shares Issued Upon Exercise of Options		2,445,748		2,351,544		2,152,095
Cash Received from Exercise of Stock Options	$	681	$	553	$	934
Total Intrinsic Value of Options Exercised	$	19,137	$	8,867	$	8,336

A continuity schedule of outstanding unvested stock options at July 31, 2024, 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, 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
Issuance of Replacement Options (Note 3)		2,301,750			1.75
Granted		1,205,254			2.18
Forfeited		(24,651	)		2.00
Vested		(3,865,242	)		1.66
Balance, July 31, 2023		1,803,265			2.28
Granted		483,461			3.71
Forfeited		(24,400	)		2.31
Vested		(1,175,338	)		2.35
Balance, July 31, 2024		1,086,988		$	2.83

As at July 31, 2024, the aggregate intrinsic value of all outstanding stock options granted was estimated at $16,717 (vested: $14,980 and unvested: $1,737).  As at July 31, 2024, the unrecognized compensation cost related to unvested stock options was $2,181, which is expected to be recognized over 1.14 years.

A summary of stock options outstanding and exercisable as at July 31, 2024 is as follows:

	Options Outstanding						Options Exercisable
Range of Exercise	Outstanding at		Weighted Average		Weighted Average Remaining Contractual Term		Exercisable at		Weighted Average		Weighted Average Remaining Contractual Term
Prices	July 31, 2024		Exercise Price		(Years)		July 31, 2024		Exercise Price		(Years)
$0.91 to $0.99		1,440,500	$	0.92		5.76		1,440,500	$	0.92		5.76
$1.00 to $1.99		475,000		1.10		5.96		475,000		1.10		5.96
$2.00 to $2.99		537,149		2.26		6.92		537,149		2.26		6.92
$3.00 to $3.99		2,164,729		3.61		8.18		1,550,559		3.68		8.03
$4.00 to $4.99		7,500		4.56		8.81		2,500		4.48		8.67
$5.00 to $5.99		428,318		5.48		9.96		3,125		5.16		9.16
$6.00 to $6.99		40,143		6.70		9.63		5,018		6.70		9.63
$7.00 to $7.63		10,000		7.63		9.48		2,500		7.63		9.48
		5,103,339	$	2.66		7.32		4,016,351	$	2.20		6.82

Restricted Stock Units

During Fiscal 2024, Fiscal 2023 and Fiscal 2022, the Company granted RSUs to certain directors and officers of the Company under our then stock incentive plans.  RSUs granted during Fiscal 2024, Fiscal 2023 and Fiscal 2022 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.  The fair value of these RSUs was determined using the share prices at the respective grant dates.

A continuity schedule of outstanding RSUs as at July 31, 2024, and the changes during the fiscal year end periods, is as follows:

	Number of Restricted			Weighted Average
	Stock Units			Grant Date Fair Value
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
Granted		620,386			3.32
Vested		(464,985	)		2.02
Forfeited		(11,935	)		3.98
Balance, July 31, 2023		979,500			3.32
Granted		642,464			5.57
Vested		(454,284	)		3.14
Balance, July 31, 2024		1,167,680		$	4.63

A summary of outstanding unvested RSUs as at July 31, 2024, is as follows:

	Number of Restricted		Grant Date		Remaining Life		Aggregate Intrinsic
Grant Date	Stock Units		Fair Value		(Years)		Value
May 01, 2022		19,608	$	4.25		0.84	$	116
July 29, 2022		92,015		3.98		1.08		546
July 31, 2023		413,593		3.32		2.08		2,453
Jan 02, 2024		1,166		6.44		2.51		7
Jan 22, 2024		8,919		7.63		0.56		53
Mar 13, 2024		2,288		6.49		0.70		14
Apr 01, 2024		20,000		7.07		2.75		119
Jul 26, 2024		610,091		5.49		3.07		3,618
		1,167,680	$	4.63		2.50	$	6,926

During Fiscal 2024, Fiscal 2023 and Fiscal 2022, the number of RSUs vested, the net RSU shares issued and the net RSU shares forfeited as payments of tax withholding amounts were as follows:

	Year Ended July 31,
	2024		2023		2022
Number of RSUs vested		454,284		464,985		508,368
Number of net RSU shares issued		250,994		261,232		267,681
Number of RSU shares forfeited as payments of withholding amounts		203,290		203,753		240,687

During Fiscal 2024, Fiscal 2023 and Fiscal 2022, stock-based compensation relating to the RSUs were $1,822, $1,105 and $780, respectively.

As at July 31, 2024, unrecognized compensation costs related to unvested RSUs totaled $4,415, which is expected to be recognized over a period of approximately 1.86 years.

Performance Based Restricted Stock Units

During Fiscal 2024, Fiscal 2023 and Fiscal 2022, the Company granted 718,308, 551,923 and 241,632 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 then stock incentive plans.  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”).

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 were valued using the Monte Carlo Simulation Model at the date of grant with the following principal assumptions.

	Year Ended July 31,
	2024			2023			2022
Expected Risk Free Interest Rate		4.20	%		4.52	%		2.80	%
Expected Volatility		73.50	%		84.56	%		90.90	%
Expected Dividend Yield		0	%		0	%		0	%
Expected Life in Years		3.00			3.00			3.00
Correlation		83.80	%		81.22	%		76.89	%
Grant Price	$	5.49		$	3.32		$	3.98
Grant Date Fair Value	$	5.41		$	3.35		$	4.80

A continuity schedule of unvested PRSUs as at July 31, 2024, and the changes during the fiscal year end periods, is as follows:

	Number of Unvested			Weighted Average Grant Date
	PRSUs			Fair Value
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
Granted		551,923			3.35
Balance, July 31, 2023		1,286,505			3.29
Granted		718,308			5.41
Vested		(492,950	)		2.48
Balance, July 31, 2024		1,511,863		$	4.56

During Fiscal 2024, Fiscal 2023 and Fiscal 2022, stock-based compensation related to amortization of PRSUs totaled $710, $397 and $293, respectively.  As at July 31, 2024, unrecognized compensation costs relating to unvested PRSUs totaled $2,739, which is expected to be recognized over a weighted average period of approximately 2.54 years.

Stock-Based Compensation

A summary of stock-based compensation expense for Fiscal 2024, Fiscal 2023 and Fiscal 2022, is as follows:

	Year Ended July 31,
	2024		2023		2022
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	-	$	445	$	770
Amortization of stock option expenses		347		561		220
Amortization of RSU expenses		41		-		-
		388		1,006		990
Stock-Based Compensation for Management
Common stock issued to management		-		-		-
Amortization of stock option expenses		611		400		471
Amortization of RSU and PRSU expenses		2,399		1,370		1,035
		3,010		1,770		1,506
Stock-Based Compensation for Employees
Common stock issued to employees		-		888		1,187
Amortization of stock option expenses		1,682		1,727		960
Amortization of RSU expenses		92		132		38
		1,774		2,747		2,185
	$	5,172	$	5,523	$	4,681