Share capital

9 Months Ended

Aug. 31, 2024

Share-Based Payment Arrangement [Abstract]

Share capital

6)    Share capital

Authorized:

unlimited common shares, no par value

	in thousands of dollars, except share amounts
	Number of shares	Ascribed value
		$
November 30, 2023	155,925,990	187,886
Restricted Share Units	4,312,432	2,112
Services settled by common shares	185,585	90
Joint venture equity contribution (note 3(a))	143,507	112
August 31, 2024, issued and outstanding	160,567,514	190,200

(a) Stock options

During the three-month period ended February 29, 2024, the Company granted 2,775,000 stock options (2023 - 3,230,000 stock options) at an exercise price of CDN$0.59 (2023 - CDN$0.78) to employees, consultants and directors exercisable for a period of five years with various vesting terms from immediate vesting to vesting over a two-year period. The fair value attributable to each of these option grants was CDN$0.27 (2023 - CDN$0.37).  No grants were made during the three-month periods ended May 31, 2024 or August 31, 2024.

For the three-month period ended August 31, 2024, Trilogy recognized a stock-based compensation charge of $0.1 million (2023 - $0.1 million) for options granted to directors, employees and service providers, net of estimated forfeitures. For the nine-month period ended August 31, 2024, Trilogy recognized a stock-based compensation charge of $0.5 million (2023 - $0.8 million) for options granted to directors, employees and service providers, net of estimated forfeitures.

The fair value of the stock options recognized in the period has been estimated using the Black-Scholes option pricing model.

Assumptions used in the pricing model for the nine-month period ended August 31, 2024 are as provided below.

	August 31, 2024
Risk-free interest rates	3.84%
Exercise price	CDN$0.59
Expected life	3 years
Expected volatility	65.5%
Expected dividends	Nil

As at August 31, 2024, there were 2,533,339 non-vested options outstanding with a weighted average exercise price of CDN$0.66. The value of non-vested stock option expense not yet recognized was $0.2 million of which approximately $0.1 million will be recognized during the quarter ending November 30, 2024 and the remainder throughout the next fiscal year.

A summary of the Company’s stock options outstanding and changes during the nine-month period ended August 31, 2024 is as follows:

		August 31, 2024
		Weighted average
		exercise price
	Number of options	CDN$
Balance – beginning of the period	12,649,400	2.15
Granted	2,775,000	0.59
Expired	(1,107,500)	2.96
Balance – end of the period	14,316,900	1.78

There were no stock options exercised during the nine-month period ended August 31, 2024.

The following table summarizes information about the stock options outstanding at August 31, 2024.

	Outstanding			Exercisable		Unvested
			Weighted		Weighted
	Number of	Weighted	average	Number of	average	Number of
	outstanding	average years	exercise price	exercisable	exercise price	unvested
Range of exercise price - CDN	options	to expiry	CDN$	options	CDN$	options
$0.59 to $1.00	5,955,000	3.73	0.69	3,421,661	0.72	2,533,339
$2.01 to $3.00	7,016,900	1.21	2.47	7,016,900	2.47	—
$3.01 to $3.02	1,345,000	0.32	3.02	1,345,000	3.02	—
	14,316,900	2.18	1.78	11,783,561	2.03	2,533,339

The aggregate intrinsic value of vested stock options (the market value less the exercise price) at August 31, 2024 was $Nil (2023 - $Nil) and the aggregate intrinsic value of exercised options for the nine-month period ending August 31, 2024 was $Nil (2023 - $Nil).

(b) Restricted Share Units and Deferred Share Units

The Company has a Restricted Share Unit Plan (“RSU Plan”) to provide long-term incentives to employees and consultants, a Non-Executive Director Deferred Share Unit Plan (“DSU Plan”), and a Non-Executive Directors Fixed Deferred Share Unit Plan (“Fixed DSU Plan”) to offset cash payments for fees to directors.  Awards under the RSU Plan, DSU Plan and Fixed DSU Plan will be settled in common shares of the Company with each restricted share unit (“RSU”) and deferred share unit (“DSU”) entitling the holder to receive one common share of the Company.  All units are accounted for as equity-settled awards.

A summary of the Company’s unit plans and changes during the nine-month period ending August 31, 2024 is as follows:

	Number of RSUs	Number of DSUs	Number of Fixed DSUs
Balance – beginning of the period	1,610,638	2,428,701	—
Granted	5,705,718	551,676	—
Vested/Converted	(4,498,017)	—	—
Balance – end of the period	2,818,339	2,980,377	—

For the three-month period ending August 31, 2024, Trilogy recognized a combined RSU and DSU stock-based compensation charge of $0.2 million (2023 - $0.2 million), net of estimated forfeitures. For the nine-month period ending August 31, 2024, Trilogy recognized a combined RSU and DSU stock-based compensation charge of $1.8 million (2023 - $2.0 million), net of estimated forfeitures.