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Note 14 - Stock-based Compensation | 12 Months Ended
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Jul. 31, 2021
Notes to Financial Statements |
Share-based Payment Arrangement [Text Block] | NOTE 14: STOCK-BASED COMPENSATION Stock Options As at July 31, 2021, we had one stock option plan, the 2021 Stock Incentive Plan (the “2021 Plan”), which superseded and replaced the Company's 2020 Stock Incentive Plan (collectively the “Stock Incentive Plan”), such that no further shares are issuable under the prior plan. During Fiscal 2021 and Fiscal 2020, we granted stock options under the Stock Incentive Plan to certain of our directors, officers, employees and consultants to purchase an aggregate of 959,588 and 4,838,900 shares of the Company, respectively, which are subject to a 24 month vesting provision whereby, at the end of each of the first three and six months after the grant date, 12.5% of the total stock options become exercisable, and whereby at the end of each of the 12, 18 and 24 months after the grant date, 25% of the total stock options become exercisable. In addition, during Fiscal 2020, we granted performance stock options (the “PSO”s) under the Stock Incentive Plan to certain of our directors and officers to purchase an aggregate of 1,325,000 shares of the Company. The PSOs are subject to a three year vesting provision whereby one - third of the total PSOs become exercisable at the end of each of the first, second and third year after the date of grant. The fair value of these stock options was estimated at the date of grant, using the Black-Scholes Option Valuation Model, with the following weighted average assumptions:
|  | Year Ended July 31, |
|  | 2021 |  |  | 2020 |
Expected Risk Free Interest Rate |  |  | 0.70 | % |  |  | 0.40 | %
Expected Volatility |  |  | 72.57 | % |  |  | 60.48 | %
Expected Life in Years |  |  | 5.0 |  |  |  | 4.9 |
Expected Dividend Yield |  |  | 0 | % |  |  | 0 | %
Weighted-Average Grant Date Fair Value |  | $ | 1.30 |  |  | $ | 0.45 |
A continuity schedule of outstanding stock options as at July 31, 2021, and the changes during the fiscal year periods, is as follows:
|  | Number of Stock Options |  |  | Weighted Average Exercise Price |
Balance, July 31, 2019 |  |  | 15,738,350 |  |  | $ | 1.30 |
Granted |  |  | 6,163,900 |  |  |  | 0.95 |
Cancelled/Forfeited |  |  | (179,344 | ) |  |  | 1.02 |
Expired |  |  | (6,208,156 | ) |  |  | 1.39 |
Balance, July 31, 2020 |  |  | 15,514,750 |  |  |  | 1.13 |
Granted |  |  | 959,588 |  |  |  | 2.21 |
Exercised |  |  | (4,705,005 | ) |  |  | 1.09 |
Expired |  |  | (1,365,000 | ) |  |  | 1.48 |
Balance, July 31, 2021 |  |  | 10,404,333 |  |  | $ | 1.21 |
The table below sets forth the number of shares issued and cash received upon exercise of stock options:
|  | Year Ended July 31, |
|  | 2021 |  |  | 2020 |
Number of Options Exercised on Forfeiture Basis |  |  | 2,970,878 |  |  |  | - |
Number of Options Exercised on Cash Basis |  |  | 1,734,127 |  |  |  | - |
Total Number of Options Exercised |  |  | 4,705,005 |  |  |  | - |
Number of Shares Issued on Cash Exercise |  |  | 1,734,127 |  |  |  | - |
Number of Shares Issued on Forfeiture Basis |  |  | 1,592,128 |  |  |  | - |
Total Number of Shares Issued Upon Exercise of Options |  |  | 3,326,255 |  |  |  | - |
Cash Received from Exercise of Stock Options |  | $ | 1,915,995 |  |  | $ | - |
Total Intrinsic Value of Options Exercised |  | $ | 6,882,464 |  |  | $ | - |
A continuity schedule of outstanding unvested stock options at July 31, 2021, and the changes during the fiscal year periods, is as follows:
|  | Number of Unvested Stock Options |  |  | Weighted Average Grant Date Fair Value |
Balance, July 31, 2019 |  |  | 3,310,600 |  |  | $ | 0.59 |
Granted |  |  | 6,163,900 |  |  |  | 0.45 |
Vested |  |  | (2,590,154 | ) |  |  | 0.60 |
Cancelled/Forfeited |  |  | (86,875 | ) |  |  | 0.43 |
Balance, July 31, 2020 |  |  | 6,797,471 |  |  |  | 0.46 |
Granted |  |  | 959,588 |  |  |  | 1.30 |
Vested |  |  | (3,865,852 | ) |  |  | 0.47 |
Balance, July 31, 2021 |  |  | 3,891,207 |  |  | $ | 0.66 |
As at July 31, 2021, the aggregate intrinsic value of all outstanding stock options granted was estimated at $10,147,195 (vested: $6,597,753 and unvested: $3,549,442 ). As at July 31, 2021, the unrecognized compensation cost related to unvested stock options was $1,711,602 expected to be recognized over 1.15 years. A summary of stock options outstanding and exercisable as at July 31, 2021 is as follows:
|  |  |  | Options Outstanding |  |  | Options Exercisable |
Range of Exercise Prices |  | Outstanding at July 31, 2021 |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Exercisable at July 31, 2021 |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |
$0.80 | to | $0.99 |  |  | 5,342,620 |  |  | $ | 0.92 |  |  |  | 8.56 |  |  |  | 3,289,024 |  |  | $ | 0.92 |  |  |  | 8.35 |
$1.00 | to | $1.49 |  |  | 2,500,125 |  |  |  | 1.17 |  |  |  | 5.30 |  |  |  | 1,616,791 |  |  |  | 1.21 |  |  |  | 3.30 |
$1.50 | to | $2.80 |  |  | 2,561,588 |  |  |  | 1.84 |  |  |  | 4.87 |  |  |  | 1,607,311 |  |  |  | 1.61 |  |  |  | 1.86 |
|  |  |  |  | 10,404,333 |  |  | $ | 1.21 |  |  |  | 6.87 |  |  |  | 6,513,126 |  |  | $ | 1.16 |  |  |  | 5.49 |
Restricted Stock Units During Fiscal 2021 and Fiscal 2020, the Company granted RSUs to certain directors and officers of the Company under our Stock Incentive Plan. RSUs granted during Fiscal 2021 have a vesting period of three years from the grant date, whereby one - third of the RSUs will vest at the end of the first, second and third year, respectively, from the date of grant. RSUs granted during Fiscal 2020 have a vesting period of three years from the grant date, whereby one -half of the RSUs will vest at the end of the first year, and one - third of the remaining one -half will vest at the end of each of the first, second and third year, respectively, from the date of grant. The fair value of these RSUs were determined using the share prices at the respective grant dates. A continuity schedule of outstanding RSUs as at July 31, 2021, and the changes during the fiscal year end periods, is as follows:
|  | Number of Restricted Stock Units |  |  | Weighted Average Grant Date Fair Value |
Balance, July 31, 2019 |  |  | 465,000 |  |  | $ | 0.94 |
Granted |  |  | 1,305,000 |  |  |  | 0.91 |
Vested |  |  | (155,000 | ) |  |  | 0.94 |
Balance, July 31, 2020 |  |  | 1,615,000 |  |  |  | 0.92 |
Granted |  |  | 407,617 |  |  |  | 2.15 |
Vested |  |  | (1,025,005 | ) |  |  | 0.91 |
Balance, July 31, 2021 |  |  | 997,612 |  |  | $ | 1.42 |
A summary of outstanding unvested RSUs as at July 31, 2021 is as follows:
Grant Date |  | Number of Restricted Stock Units |  |  | Grant Date Fair Value |  |  | Remaining Life (Years) |  |  | Aggregate Intrinsic Value |
July 30, 2019 |  |  | 154,999 |  |  | $ | 0.94 |  |  |  | 1.00 |  |  | $ | 336,348 |
July 16, 2020 |  |  | 434,996 |  |  |  | 0.91 |  |  |  | 1.96 |  |  |  | 943,941 |
July 21, 2021 |  |  | 407,617 |  |  |  | 2.15 |  |  |  | 2.98 |  |  |  | 884,529 |
|  |  | 997,612 |  |  | $ | 1.42 |  |  |  | 2.22 |  |  | $ | 2,164,818 |
During Fiscal 2021 and Fiscal 2020, stock-based compensation relating to the RSUs totaled $1,059,505 and $310,127, respectively. During Fiscal 2021 and Fiscal 2020, a total of 1,025,005 and 155,000 RSUs vested, respectively, resulting in 536,361 and 105,844 net RSU shares being issued with 488,644 and 49,156 RSUs being forfeited, respectively as payments of tax withholding amounts. As at July 31, 2021, unrecognized compensation costs related to unvested RSUs totaled $1,132,372, which is expected to be recognized over a period of approximately 1.85 years. Performance Based Restricted Stock Units During Fiscal 2021, the Company granted 246,475 target PRSUs (the “Target PRSUs”) and allocated up to the same amount of respective PRSUs (the “Additional PRSUs”, and together with the Target PRSUs, the “PRSUs”) respectively, to the Company's executive officers under our Stock Incentive Plan. These PRSUs vest based on certain performance goals measured on the Company's share price relative to the Global X Uranium ETF share price over a three -year period (the “Performance Period”). The PRSUs vest based on relative Total Shareholder Return's (“TSR”) (stock price appreciation) over the measurement period from the grant date of the PRSUs (the “Measurement Period”). No PRSUs were granted in Fiscal 2020. These PRSUs have a market condition considered in the determination of the fair value such that the ultimate number of PRSUs that vest will be determined by the Company's share performance relative to the Global X Uranium ETF share price from the grant date over the Performance Period. Depending on the TSR performance, the percentage eligible to vest at the end of the respective Measurement Period would range from 0% to 200% of the Target PRSUs for that Measurement Period. The vested PRSUs will accrue annually and will not settle until the end of the Performance Period. Each vested PRSU converts into one common share of the Company at the end of the Performance Period with no cash settlement alternatives. The PRSUs carry neither rights to dividends nor voting rights. The Company accounts for the PRSUs as an equity-settled plan. The fair values of the Target PRSUs granted in Fiscal 2021 were valued using the Monte Carlo simulation model at the date of grant with the following principal assumptions:
Expected Risk Free Interest Rate |  |  | 0.39 | %
Expected Volatility |  |  | 78.03 | %
Expected Dividend Yield |  |  | 0 | %
Expected Life in Years |  |  | 3 |
Correlation |  |  | 66.02 | %
Grant Price |  | $ | 2.15 |
Grant Date Fair Value |  | $ | 2.48 |
During Fiscal 2021 and Fiscal 2020, an aggregate of 222,500 and 90,001 PRSUs vested, respectively, based on UEC's share performance then relative to the Global X Uranium ETF, which were accrued and recorded as share issuance obligations on our consolidated balance sheets. A continuity schedule of unvested PRSUs comprised of Target PRSUs and Additional PRSUs as at July 31, 2021, and the changes during the fiscal year end periods, is as follows:
|  | Number of Unvested PRSUs |  |  | Weighted Average Grant Date Fair Value |
Balance, July 31, 2019 |  |  | 890,000 |  |  | $ | 1.15 |
Forfeited |  |  | (132,499 | ) |  |  | 1.15 |
Balance, July 31, 2020 |  |  | 757,501 |  |  |  | 1.15 |
Granted |  |  | 492,950 |  |  |  | 2.48 |
Balance, July 31, 2021 |  |  | 1,250,451 |  |  | $ | 1.67 |
During Fiscal 2021 and Fiscal 2020, stock-based compensation related to amortization of PRSUs totaled $156,055 and $272,658, respectively. As at July 31, 2021, unrecognized compensation costs relating to unvested PRSUs totaled $694,998, which is expected to be recognized over a period of approximately 1.76 years. Stock-Based Compensation A summary of stock-based compensation expense for Fiscal 2021 and Fiscal 2020 is as follows:
|  | Year Ended July 31, |
|  | 2021 |  |  | 2020 |
Stock-Based Compensation for Consultants |  |  |  |  |  |  |  |
Common stock issued to consultants |  | $ | 876,695 |  |  | $ | 539,552 |
Amortization of stock option expenses |  |  | 288,603 |  |  |  | 240,912 |
|  |  | 1,165,298 |  |  |  | 780,464 |
Stock-Based Compensation for Management |  |  |  |  |  |  |  |
Common stock issued to management |  |  | 135,000 |  |  |  | 225,217 |
Amortization of stock option expenses |  |  | 773,583 |  |  |  | 644,516 |
Amortization of RSU & PRSU expenses |  |  | 1,215,560 |  |  |  | 582,785 |
|  |  | 2,124,143 |  |  |  | 1,452,518 |
Stock-Based Compensation for Employees |  |  |  |  |  |  |  |
Common stock issued to employees |  |  | 1,199,958 |  |  |  | 635,414 |
Amortization of stock option expenses |  |  | 982,179 |  |  |  | 640,011 |
|  |  | 2,182,137 |  |  |  | 1,275,425 |
Settlement of share issuance obligation |  |  | - |  |  |  | (15,189 | )
|  | $ | 5,471,578 |  |  | $ | 3,493,218 |
During Fiscal 2020, we issued 188,914 shares with a fair value of $171,911 as settlement of share issuance obligations of $187,100 relating to the Fiscal 2019 share bonuses under our Stock Incentive Plan.

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