Note 13 - Stock-based Compensation

6 Months Ended

Jan. 31, 2025

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 13: STOCK-BASED COMPENSATION

Stock Options

A continuity schedule of our outstanding stock options for the three and six months ended January 31, 2025, 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
Granted		1,289			8.28
Exercised		(63,852	)		3.34
Cancelled/Forfeited		(22,524	)		4.37
Balance, January 31, 2025		4,857,230		$	2.66

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

	Three Months Ended January 31,				Six Months Ended January 31,
	2025		2024		2025		2024
Number of Options Exercised on a Cash Basis		2,438		100,425		48,713		289,675
Number of Options Exercised on a Non-Cash Basis		61,414		778,078		188,514		1,197,010
Total Number of Options Exercised		63,852		878,503		237,227		1,486,685
Number of Shares Issued on a Cash Basis		2,438		100,425		48,713		289,675
Number of Shares Issued on a Non-Cash Basis		35,627		569,574		110,389		826,185
Total Number of Shares Issued Upon Exercise of Options		38,065		669,999		159,102		1,115,860
Cash Received from Exercise of Stock Options	$	9	$	137	$	129	$	400
Total Intrinsic Value of Options Exercised	$	301	$	4,561	$	1,110	$	6,591

A continuity schedule of our outstanding unvested stock options as of January 31, 2025, 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
Granted		1,289			5.53
Cancelled/Forfeited		(22,449	)		2.89
Vested		(280,059	)		2.50
Balance, January 31, 2025		710,797		$	2.97

During the six months ended January 31, 2025, we granted a stock option 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 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. 

For the six months ended January 31, 2025, the weighted average fair value of the stock options granted was $4.17 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	$	6.31
Expected Risk Free Interest Rate		3.52	%
Expected Volatility		79.77	%
Expected Life in Years		5
Expected Dividend Yield		0.00	%

As at January 31, 2025, the aggregate intrinsic value of all of our outstanding stock options was estimated at $21.40 million (vested: $19.65 million and unvested: $1.75 million).  As at January 31, 2025, our unrecognized compensation cost related to unvested stock options was $1.01 million ( July 31, 2024: $2.18 million), which is expected to be recognized over 0.98 years.

A summary of our stock options outstanding and exercisable as of January 31, 2025, 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	January 31, 2025		Exercise Price		Term (Years)		January 31, 2025		Exercise Price		Term (Years)
$0.91 to $0.99		1,392,750	$	0.92		5.26		1,392,750	$	0.92		5.26
$1.00 to $1.99		475,000		1.10		5.45		475,000		1.10		5.45
$2.00 to $2.99		522,149		2.26		6.42		522,149		2.26		6.42
$3.00 to $3.99		1,976,654		3.61		7.65		1,630,427		3.64		7.56
$4.00 to $4.99		6,250		4.62		8.42		3,750		4.56		8.31
$5.00 to $5.99		408,580		5.48		9.46		104,268		5.47		9.43
$6.00 to $6.99		64,558		6.51		9.33		13,089		6.58		9.26
$7.00 to $7.99		10,000		7.63		8.97		5,000		7.63		8.97
$8.00 to $8.28		1,289		8.28		9.80		-		8.28		9.80
		4,857,230	$	2.66		6.80		4,146,433	$	2.32		6.46

Restricted Stock Units

During the six months ended January 31, 2025, the Company granted 16,103 restricted stock units (each, an “RSU”) 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 January 31, 2025, is as follows:

	Number of
	Restricted Stock		Grant Date		Remaining Life		Aggregate
Grant Date	Units		Fair Value		(Years)		Intrinsic Value
May 1, 2022		19,608		4.25		0.33		138
July 29, 2022		92,015		3.98		0.58		650
July 31, 2023		413,593		3.32		1.58		2,920
January 2, 2024		778		6.44		2.01		5
January 22, 2024		8,919		7.63		0.06		63
March 13, 2024		2,288		6.49		0.20		16
April 1, 2024		20,000		7.07		2.25		141
July 26, 2024		610,091		5.49		2.57		4,307
September 1, 2024		1,063		5.23		0.67		8
October 1, 2024		16,103		6.21		2.75		114
November 5, 2024		2,230		7.12		1.84		16
November 5, 2024		14,344		7.12		2.84		101
November 18, 2024		431		8.28		0.88		3
January 6, 2025		5,874		7.06		3.02		41
January 27, 2025		2,122		7.07		3.07		15
		1,209,459	$	4.70		2.02	$	8,538

During the three and six months ended January 31, 2025, our stock-based compensation related to RSUs was $0.78 million and $1.53 million (three and six months ended January 31, 2024: $0.44 million and 0.87 million), respectively.  As at January 31, 2025, our unrecognized compensation costs related to unvested RSUs totaled $3.17 million ( July 31, 2024: $4.42 million), which is expected to be recognized over a period of approximately 1.55 years.

Performance Based Restricted Stock Units

During the three and six months ended January 31, 2025, our stock-based compensation related to the amortization of performance based restricted stock units (each, a “PRSU”) totaled $0.29 million and $0.57 million (three and six months ended January 31, 2024: $0.18 million and $0.35 million), respectively.  As at January 31, 2025, our unrecognized compensation costs related to unvested PRSUs totaled $2.16 million ( July 31, 2024: $2.74 million), which is expected to be recognized over a period of approximately 2.10 years.

Stock-Based Compensation

A summary of our stock-based compensation expense for the three and six months ended January 31, 2025, is as follows:

	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2025		2024		2025		2024
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	-	$	-	$	88	$	-
Amortization of stock option expenses		42		94		97		215
Amortization of RSU expenses		15		-		33		-
		57		94		218		215
Stock-Based Compensation for Management
Amortization of stock option expenses		172		160		379		368
Amortization of RSU and PRSU expenses		977		595		1,946		1,189
		1,149		755		2,325		1,557
Stock-Based Compensation for Employees
Amortization of stock option expenses		273		445		707		1,077
Amortization of RSU expenses		75		18		127		35
		348		463		834		1,112
	$	1,554	$	1,312	$	3,377	$	2,884