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Stock-Based Compensation Plans

12 Months Ended

Jan. 31, 2023

Stock-Based Compensation Plans

Stock-Based Compensation Plans

Note 17 - Stock-Based Compensation Plans

Total estimated stock-based compensation expense recognized in our consolidated statement of operations was as follows:


		January 31,		January 31,		January 31,
Year Ended		2023		2022		2021
Cost of revenues		940		732		319
Sales and marketing		2,468		3,060		896
Research and development		1,788		1,419		404
General and administrative		8,471		5,806		4,694
Effect on net income		13,667		11,017		6,313

Differences between how GAAP and applicable income tax laws treat the amount and timing of recognition of stock-based compensation expense may result in a deferred tax asset. We have recorded a valuation allowance against any such deferred tax asset except for $0.8 million ($0.7 million at January 31, 2022) recognized in the United States. The tax benefit realized in connection with stock options exercised during 2023,2022 and 2021 was nominal, $0.1 million and nominal, respectively.

Stock Options

As of January 31, 2023, we had 1,593,433 stock options granted and outstanding under our shareholder-approved stock option plan and 2,703,675 remained available for grant.

As of January 31, 2023, $7.7 million of total unrecognized compensation costs, net of forfeitures, related to non-vested stock option awards is expected to be recognized over a weighted average period of 2.6 years. The total fair value of stock options vested during 2023 was $4.2 million. The total number of options granted during the years ended January 31, 2023,2022 and 2021 was 356,014, 271,025 and 381,859, respectively.

The weighted average grant-date fair value of options granted during the years ended January 31, 2023, 2022 and 2021 was $18.47, $16.77 and $10.19 per option, respectively.

The weighted-average assumptions were as follows:


		January 31,		January 31,		January 31,
Year Ended		2023		2022		2021

Expected dividend yield (%)		—		—		—
Expected volatility (%)		29.2		27.8		26.4
Risk-free rate (%)		2.4		0.7		0.7
Expected option life (years)		5		5		5

A summary of option activity under all of our plans is presented as follows:


							Weighted-
		Number of		Weighted-			Average		Aggregate
		Stock		Average			Remaining		Intrinsic
		Options		Exercise			Contractual		Value
		Outstanding		Price			Life (years)		(in millions)
Balance at January 31, 2021		1,147,720		$	33.77		4.9		$	28.1
Granted		271,025		$	65.03
Exercised		(90,166)		$	29.38
Forfeited		(9,300)		$	53.94
Balance at January 31, 2022		1,319,279		$	42.35		4.4		$	41.5
Granted		356,014		$	61.09
Exercised		(63,890)		$	27.34
Forfeited		(17,970)		$	52.98
Balance at January 31, 2023		1,593,433		$	45.54		4.1		$	45.7

Vested or expected to vest at January 31, 2023		1,593,433		$	45.54		4.1		$	45.7

Exercisable at January 31, 2023		1,104,612		$	40.35		3.5		$	37.4

The total intrinsic value of options exercised during the years ended January 31, 2023, 2022 and 2021 was approximately $2.5 million, $3.7 million and $10.8 million, respectively.

Options outstanding and options exercisable as at January 31, 2023 by range of exercise price are as follows:


		Options Outstanding							Options Exercisable
							Weighted
		Weighted					Average		Weighted
		Average			Number of		Remaining		Average			Number of
		Exercise			Stock		Contractual		Exercise			Stock
Range of Exercise Prices		Price			Options		Life (years)		Price			Options
$18.95 – $22.86		$	21.75		148,153		0.9		$	21.75		148,153
$26.24 – $27.85		$	27.85		166,350		2.2		$	27.85		166,350
$38.53 – $54.25		$	39.53		625,310		3.7		$	39.12		525,872
$56.31 – $68.49		$	61.19		653,620		5.7		$	61.11		264,237
		$	45.54		1,593,433		4.1		$	40.35		1,104,612

A summary of the status of our unvested stock options under our shareholder-approved stock option plan as of January 31, 2023 is presented as follows:


				Weighted-
				Average
		Number of		Grant-Date
		Stock Options		Fair Value per
		Outstanding		Share
Balance at January 31, 2021		501,655		$	9.52
Granted		271,025		$	16.77
Vested		(300,527)		$	11.42
Forfeited		(9,300)		$	13.54
Balance at January 31, 2022		462,853		$	13.16
Granted		356,014		$	18.47
Vested		(313,186)		$	13.72
Forfeited		(16,860)		$	3.71
Balance at January 31, 2023		488,821		$	16.11

Performance Share Units

A summary of PSU activity is as follows:


				Weighted-			Weighted-
				Average			Average		Aggregate
		Number of		Granted			Remaining		Intrinsic
		PSUs		Date Fair			Contractual		Value
		Outstanding		Value			Life (years)		(in millions)
Balance at January 31, 2021		755,873		$	25.17		4.7		$	44.0
Granted		77,441		$	88.11
Performance units issued		44,296		$	36.63
Exercised		(100,072)		$	9.66
Balance at January 31, 2022		777,538		$	35.76		4.8		$	57.4
Granted		97,991		$	64.98
Performance units issued		39,704		$	54.34
Exercised		—			—
Balance at January 31, 2023		915,233		$	38.41		4.5		$	67.9

Vested or expected to vest at January 31, 2023		915,233		$	38.41		4.5		$	67.9

Exercisable at January 31, 2023		654,467		$	26.77		3.1		$	48.6

The aggregate intrinsic values represent the total pre-tax intrinsic value (the aggregate closing share price of our common shares on January 31, 2023) that would have been received by PSU holders if all PSUs had been vested on January 31, 2023.

As of January 31, 2023, $6.6 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of 1.0 years. The total fair value of PSUs vested during 2023 was $5.2 million.

Restricted Share Units

A summary of RSU activity is as follows:


				Weighted-			Weighted-		Aggregate
				Average			Average		Intrinsic
		Number of		Granted			Remaining		Value
		RSUs		Date Fair			Contractual		(in
		Outstanding		Value			Life (years)		millions)
Balance at January 31, 2021		432,195		$	19.98		4.7		$	25.2
Granted		50,099		$	65.33
Exercised		(71,314)		$	7.14
Balance at January 31, 2022		410,980		$	29.17		5.0		$	30.3
Granted		63,651		$	61.53
Exercised		—			—
Balance at January 31, 2023		474,631		$	32.44		4.7		$	35.2

Vested or expected to vest at January 31, 2023		474,631		$	32.44		4.7		$	35.2

Exercisable at January 31, 2023		415,496		$	28.26		4.1		$	30.8

The aggregate intrinsic values represent the total pre-tax intrinsic value (the aggregate closing share price of our common shares on January 31, 2023) that would have been received by RSU holders if all RSUs had been vested on January 31, 2023.

As of January 31, 2023, $3.5 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of 1.7 years. The total fair value of RSUs vested during 2023 was $3.3 million.

Deferred Share Unit Plan

As at January 31, 2023, the total number of DSUs held by participating directors was 283,338 (252,011 at January 31, 2022), representing an aggregate accrued liability of $20.6 million ($18.3 million at January 31, 2022). During 2023, 31,327 DSUs were granted and nil DSUs were redeemed and settled in cash. As at January 31, 2023, the unrecognized aggregate liability for the unvested DSUs was nil (nil at January 31, 2022). The fair value of the DSU liability is based on the closing price of our common shares at the balance sheet date. The total compensation cost related to DSUs recognized in our consolidated statements of operations was approximately $3.2 million, $4.5 million and $4.6 million for the years ended January 31, 2023, 2022 and 2021, respectively.

Cash-Settled Restricted Share Unit Plan

A summary of activity under our CRSU plan is as follows:


				Weighted-
				Average
		Number of		Remaining
		CRSUs		Contractual
		Outstanding		Life (years)
Balance at January 31, 2021		38,628		1.5
Granted		12,776
Vested and settled in cash		(26,755)
Forfeited		(221)
Balance at January 31, 2022		24,428		1.4
Granted		7,948
Vested and settled in cash		(17,719)
Forfeited		(74)
Balance at January 31, 2023		14,583		1.4

Non-vested at January 31, 2023		14,583		1.4

We recognize the compensation cost of the CRSUs ratably over the service/vesting period relating to the grant and have recorded an aggregate accrued liability of $0.4 million at January 31, 2023 ($0.8 million at January 31, 2022). As at January 31, 2023, the unrecognized aggregate liability for the unvested CRSUs was $0.7 million ($1.0 million at January 31, 2022). The fair value of the CRSU liability is based on the closing price of our common shares at the balance sheet date. The total compensation cost related to CRSUs recognized in our consolidated statements of operations was approximately $0.8 million, $1.3 million and $1.1 million for the years ended January 31, 2023, 2022 and 2021, respectively.