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Stock-Based Compensation
 3 Months Ended
Aug. 31, 2025
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In August 2022, the Company established a Stock Option Plan, superseded by the 2023 Equity Incentive Plan (the “Incentive Plan”), under which the Company’s Board of Directors may, from time-to-time, in its discretion, grant stock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 three months ended August 31, 2025, the Company granted 278,000 stock options (August 31, 2024 – 150,000). 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,
2025		   August 31,
2024		 
Stock price  $USD2.01   $USD0.27 
Risk-free interest rate   4.2%   3.6%
Term (years)   5    5 
Volatility   76%   76%
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, 2025   2,205,230   $0.58    8.4   $1,340 
Issued June 24, 2025   278,000   $2.01    9.8   $- 
Outstanding stock options August 31, 2025   2,483,230   $0.74    8.4   $3,552 
Exercisable as of August 31, 2025   668,563   $0.55    5.5   $1,106 

 

During the three months-ended August 31, 2025, the Company recorded stock-based compensation expenses of $194 (August 31, 2024 - $26) relating to stock options and $802 relating to shares issued for services (August 31, 2024 - $74).

 

On August 27, 2025, the Company issued 1,160,001 Performance Share Units (“PSU’s”) that vest upon achievement of the Company achieving a market capitalization of $100 million USD. The Company has recorded $2,709 of compensation expenses related to these PSU’s based on a Monte Carlo simulation model applied on the grant date, of which $1,295 is recorded in accrued liabilities and $1,414 as a component of shareholders’ equity.

The following assumptions were used to estimate the fair value of the PSUs:

 

  August 27,
2025		 
Stock price $USD1.83 
Risk-free interest rate  3.3%
Term (years)  3.3 
Volatility  76%
Dividend yield  0%