Note 10 - Stock-based Compensation

9 Months Ended

May 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

10. STOCK-BASED COMPENSATION

A summary of stock option activities under the Northern Technologies International Corporation Amended and Restated 2019 Stock Incentive Plan (the 2019 Plan) and the Northern Technologies International Corporation Amended and Restated 2007 Stock Incentive Plan (the 2007 Plan) is as follows:

	Number of Options Outstanding			Weighted Average Exercise Price
Outstanding as of August 31, 2022		1,544,727		$	10.23
Granted		277,613		$	11.41
Exercised		(178,331	)	$	6.03
Outstanding as of May 31, 2023		1,644,009		$	10.88
Exercisable as of May 31, 2023		1,166,772		$	10.51

The weighted average per share fair value of options granted during the nine months ended May 31, 2023 and 2022 was $4.87 and $7.29, respectively. The weighted average remaining contractual life of the options outstanding as of May 31, 2023 and 2022 was 6.16 years and 6.02 years, respectively.

The Company recognized compensation expense of $339,423 and $998,311 and $232,883 and $698,649 during the three and nine months ended May 31, 2023 and 2022, respectively. As of May 31, 2023, there was $1,366,860 of unrecognized compensation expense. The amount is expected to be recognized over a period of 2.5 years