Note 12 - Stock-based Compensation

3 Months Ended

Oct. 31, 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 months ended October 31, 2024, is as follows:

	Number of Stock			Weighted Average
	Options			Exercise Price
Balance, July 31, 2024		5,103,339		$	2.66
Granted		24,415			6.21
Exercised		(173,375	)		2.85
Cancelled/Forfeited		(12,062	)		4.32
Balance, October 31, 2024		4,942,317			2.67

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

	Three Months Ended October 31,
	2024		2023
Number of Options Exercised on a Cash Basis		46,275		189,250
Number of Options Exercised on a Non-Cash Basis		127,100		418,932
Total Number of Options Exercised		173,375		608,182
Number of Shares Issued on a Cash Basis		46,275		189,250
Number of Shares Issued on a Non-Cash Basis		74,762		256,611
Total Number of Shares Issued Upon Exercise of Options		121,037		445,861
Cash Received from Exercise of Stock Options	$	120	$	264
Total Intrinsic Value of Options Exercised	$	809	$	2,030

A continuity schedule of our outstanding unvested stock options as of October 31, 2024, and the changes during the period, is as follows:

	Number of Unvested Stock Options			Weighted Average Grant-Date Fair Value
Balance, July 31, 2024		1,086,988		$	2.83
Granted		24,415			4.09
Cancelled/Forfeited		(12,062	)		2.85
Vested		(87,325	)		3.19
Balance, October 31, 2024		1,012,016		$	2.83

During the three months ended October 31, 2024, we granted stock options under our 2024 Stock Incentive Plan (the “Stock Incentive Plan”) to one of our officers to purchase an aggregate of 24,415 shares of the Company which are subject to a 24-month vesting provision whereby, at the end of each of the first 3 and 6 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. 

 

For the three months ended October 31, 2024, the fair value of the stock options granted was $4.09 per share and it was estimated at the date of grant using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy:

Exercise Price	$	6.21
Expected Risk Free Interest Rate		3.48	%
Expected Volatility		79.75	%
Expected Life in Years		5
Expected Dividend Yield		0.00	%

As at October 31, 2024, the aggregate intrinsic value of all of our outstanding stock options was estimated at $23.47 million (vested: $20.39 million and unvested: $3.09 million).  As at October 31, 2024, our unrecognized compensation cost related to unvested stock options was $1.55 million ( July 31, 2024: $2.18 million), which is expected to be recognized over 1.06 years.

A summary of our stock options outstanding and exercisable as of October 31, 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	October 31, 2024		Exercise Price		Term (Years)		October 31, 2024		Exercise Price		Term (Years)
$0.91 to $0.99		1,400,750	$	0.92		5.51		1,400,750	$	0.92		5.51
$1.00 to $1.99		475,000		1.10		5.71		475,000		1.10		5.71
$2.00 to $2.99		522,149		2.26		6.67		522,149		2.26		6.67
$3.00 to $3.99		2,041,229		3.61		7.91		1,458,559		3.68		7.68
$4.00 to $4.99		6,250		4.62		8.68		3,750		4.56		8.56
$5.00 to $5.99		422,381		5.48		9.71		57,556		5.45		9.64
$6.00 to $6.99		64,558		6.51		9.58		10,037		6.70		9.38
$7.00 to $7.63		10,000		7.63		9.23		2,500		7.63		9.23
		4,942,317	$	2.67		7.07		3,930,301	$	2.23		6.57

Restricted Stock Units

During the three months ended October 31, 2024, the Company granted 16,103 restricted stock units (“RSU”s) to one of our officers under our Stock Incentive Plan.  RSUs granted during the period 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 summary of our outstanding and unvested RSUs as of October 31, 2024, is as follows:

	Number of
	Restricted Stock		Grant Date		Remaining Life		Aggregate
Grant Date	Units		Fair Value		(Years)		Intrinsic Value
May 01, 2022		19,608		4.25		0.58		145
July 29, 2022		92,015		3.98		0.83		683
July 31, 2023		413,593		3.32		1.83		3,069
Jan 02, 2024		1,166		6.44		2.26		9
Jan 22, 2024		8,919		7.63		0.31		66
Mar 13, 2024		2,288		6.49		0.45		17
Apr 01, 2024		20,000		7.07		2.50		148
Jul 26, 2024		610,091		5.49		2.82		4,527
Sep 1, 2024		1,417		5.23		0.92		11
Oct 1, 2024		16,103		6.21		3.00		119
		1,185,200	$	4.65		2.25	$	8,794

During the three months ended October 31, 2024, our stock-based compensation related to RSUs was $0.75 million (three months ended October 31, 2023: $0.44 million).  As at October 31, 2024, our unrecognized compensation costs related to unvested RSUs totaled $3.77 million ( July 31, 2024: $4.42 million), which is expected to be recognized over a period of approximately 1.68 years.

Performance Based Restricted Stock Units

During the three months ended October 31, 2024, our stock-based compensation related to the amortization of performance based restricted stock units (each, a “PRSU”) totaled $0.29 million (three months ended October 31, 2023: $0.18 million).  As at October 31, 2024, our unrecognized compensation costs related to unvested PRSUs totaled $2.45 million ( July 31, 2024: $2.74 million), which is expected to be recognized over a period of approximately 2.31 years.

Stock-Based Compensation

A summary of our stock-based compensation expense for the three months ended  October 31, 2024, is as follows:

	Three Months Ended
	October 31,
	2024		2023
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	88	$	-
Amortization of stock option expenses		55		121
Amortization of RSU expenses		17		-
		160		121
Stock-Based Compensation for Management
Amortization of stock option expenses		207		208
Amortization of RSU and PRSU expenses		968		594
		1,175		802
Stock-Based Compensation for Employees
Amortization of stock option expenses		434		632
Amortization of RSU expenses		52		17
		486		649
	$	1,821	$	1,572