Note 14 - Stockholders' Equity

3 Months Ended

Aug. 31, 2023

Notes to Financial Statements

Equity [Text Block]

Note 14. Stockholders' equity 

Issued and outstanding

As of   August 31, 2023, the Company had 980,000,000 common shares and 10,000,000 preferred shares authorized to be issued, with 723,292,600 common shares and nil preferred shares issued and outstanding. Historically, the Company has issued shares of its common stock as consideration for business acquisitions, including the settlement of convertible notes, the settlement of litigation claims, in connection with public offerings and as payment of dividends to non-controlling interests for profit distributions.

During the three months ended August 31, 2023, the Company issued the following common shares:

a) 39,705,962 shares in connection with the HEXO Acquisition, see Note 6 (Business acquisitions).

b) 865,426 shares to settle a contractual change of  control severance in the amount of $1,500 incurred in connection with the HEXO Acquisition. 

c) 5,004,735 shares to settle dividends payable to the non-controlling shareholders of Aphria Diamond in the amount of $8,146. 

d) 17,148,541 shares for the settlement of the HTI Convertible Note payable see Note 12 (Convertible debentures payable).

e) 3,912,481 shares in connection with the exercise of previously awarded stock-based compensation awards.

The Company maintains stock-based compensation plans as disclosed in our Annual Financial Statements. For the three months ended August 31, 2023 and 2022, the total stock-based compensation was $ 8,257 and $9,193 respectively.

During the three months ended August 31, 2023 and 2022, the Company granted 11,559,549 and 5,747,938 time-based RSUs, respectively, and 7,566,146 and 2,540,394 performance-based RSUs, respectively. The 7,566,146 performance based RSUs issued during the quarter had performance conditions not yet finalized. The Company's total stock-based compensation expense recognized is as follows:

	For the three months
	ended August 31,
	2023		2022
Stock options	$	—	$	604
RSUs		8,257		8,589
Total	$	8,257	$	9,193