Stock-Based Compensation

12 Months Ended

May 31, 2024

Stock-based Compensation [Abstract]

Stock-based Compensation

NOTE 13. Stock-based Compensation

In August 2022, the Company established a Stock Option Plan, superseded by the 2023 Equity Incentive Plan (the “Option Plan”), under which the Company’s Board of Directors may, from time-to-time, in its discretion, grant stock options to directors, officers, consultants and employees of the Company.

Stock options outstanding vest in equal tranches over a period of three years. During the year ended May 31, 2024, the Company granted 100,000 stock options (May 31, 2023 – 585,230). The Company estimated the fair value of the stock options on the date of grant using the Black-Scholes option-pricing model with the following assumptions:

	May 31, 2024			May 31, 2023
Stock price	USD $	0.85		$CAD	0.30
Risk-free interest rate		4.5	%		2.8	%
Term (years)		5			5
Volatility		85	%		85	%
Forfeiture rate		0	%		0	%
Dividend yield		0	%		0	%

A summary of stock option activity for the Company is as follows: 

	Number of Shares		Weighted Average Exercise Price (USD)		Weighted Average Remaining Contractual Life (years)		Aggregate Intrinsic Value
Outstanding stock options May 31, 2023		585,230	$	0.56		6.2	$	465
Exercised		-		-		-		-
Expired		-		-		-		-
Issued May 30, 2024		100,000	$	0.85		10.0	$	-
Outstanding stock options May 31, 2024		685,230	$	0.60		6.8	$	139
Exercisable as of May 31, 2024		195,077	$	0.56		6.2	$	46

During the year ended May 31, 2024, the Company recorded stock-based compensation expenses of $66 (May 31, 2023 - $55). The weighted average grant date fair value of the stock options issued was $0.59 USD (May 31, 2023 - $0.20 USD). There were no changes to the terms and conditions of the stock options in connection with the Business Combination.