Stock-Based Compensation

3 Months Ended

Aug. 31, 2024

Stock-Based Compensation [Abstract]

Stock-based Compensation

NOTE 8. Stock-based Compensation

In August 2022, the Company established a Stock Option Plan, superseded by the 2023 Equity Incentive Plan (the “Incentive Plan”), under which the Company’s Board of Directors may, from time-to-time, in its discretion, grant stock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 quarter ended August 31, 2024, the Company granted 150,000 stock options (August 31, 2023 – nil). 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:

	August 31, 2024
Stock price	$USD	0.57
Risk-free interest rate		3.6	%
Term (years)		5
Volatility		76	%
Forfeiture rate		0	%
Dividend yield		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, 2024		685,230	$	0.60		6.8	$	139
Exercised		-		-		-		-
Expired		-		-		-		-
Issued July 2, 2024		150,000	$	0.57		9.9	$	63
Outstanding stock options August 31, 2024		835,230	$	0.60		7.1	$	327
Exercisable as of August 31, 2024		391,396	$	0.56		6.0	$	168

During the quarter ended August 31, 2024, the Company recorded stock-based compensation expenses of $100 (August 31, 2023 - $13), including $26 relating to stock options and $74 relating to shares issued for services in connection with the Company’s Incentive Plan.

There were no changes to the terms and conditions of the stock options in connection with the Business Combination.