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Note 12 - Stock-based Compensation | 3 Months Ended
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Oct. 31, 2024
Notes to Financial Statements |
Share-Based Payment Arrangement [Text Block] |
NOTE 12: | STOCK-BASED COMPENSATION
Stock Options A continuity schedule of our outstanding stock options for the three months ended October 31, 2024, is as follows:
|  | Number of Stock |  |  | Weighted Average |
|  | Options |  |  | Exercise Price |
Balance, July 31, 2024 |  |  | 5,103,339 |  |  | $ | 2.66 |
Granted |  |  | 24,415 |  |  |  | 6.21 |
Exercised |  |  | (173,375 | ) |  |  | 2.85 |
Cancelled/Forfeited |  |  | (12,062 | ) |  |  | 4.32 |
Balance, October 31, 2024 |  |  | 4,942,317 |  |  |  | 2.67 |
The table below sets forth the number of shares issued and cash received upon exercise of our stock options:
|  | Three Months Ended October 31, |
|  | 2024 |  |  | 2023 |
Number of Options Exercised on a Cash Basis |  |  | 46,275 |  |  |  | 189,250 |
Number of Options Exercised on a Non-Cash Basis |  |  | 127,100 |  |  |  | 418,932 |
Total Number of Options Exercised |  |  | 173,375 |  |  |  | 608,182 |
Number of Shares Issued on a Cash Basis |  |  | 46,275 |  |  |  | 189,250 |
Number of Shares Issued on a Non-Cash Basis |  |  | 74,762 |  |  |  | 256,611 |
Total Number of Shares Issued Upon Exercise of Options |  |  | 121,037 |  |  |  | 445,861 |
Cash Received from Exercise of Stock Options |  | $ | 120 |  |  | $ | 264 |
Total Intrinsic Value of Options Exercised |  | $ | 809 |  |  | $ | 2,030 |
A continuity schedule of our outstanding unvested stock options as of October 31, 2024, and the changes during the period, is as follows:
|  | Number of Unvested Stock Options |  |  | Weighted Average Grant-Date Fair Value |
Balance, July 31, 2024 |  |  | 1,086,988 |  |  | $ | 2.83 |
Granted |  |  | 24,415 |  |  |  | 4.09 |
Cancelled/Forfeited |  |  | (12,062 | ) |  |  | 2.85 |
Vested |  |  | (87,325 | ) |  |  | 3.19 |
Balance, October 31, 2024 |  |  | 1,012,016 |  |  | $ | 2.83 |
During the three months ended October 31, 2024, we granted stock options under our 2024 Stock Incentive Plan (the “Stock Incentive Plan”) to one of our officers to purchase an aggregate of 24,415 shares of the Company which are subject to a 24-month vesting provision whereby, at the end of each of the first 3 and 6 months after the grant date, 12.5% of the total stock options become exercisable, and whereby at the end of each of 12, 18 and 24 months after the grant date, 25% of the total stock options become exercisable. For the three months ended October 31, 2024, the fair value of the stock options granted was $4.09 per share and it was estimated at the date of grant using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy:
Exercise Price |  | $ | 6.21 |
Expected Risk Free Interest Rate |  |  | 3.48 | %
Expected Volatility |  |  | 79.75 | %
Expected Life in Years |  |  | 5 |
Expected Dividend Yield |  |  | 0.00 | %
As at October 31, 2024, the aggregate intrinsic value of all of our outstanding stock options was estimated at $23.47 million (vested: $20.39 million and unvested: $3.09 million). As at October 31, 2024, our unrecognized compensation cost related to unvested stock options was $1.55 million ( July 31, 2024: $2.18 million), which is expected to be recognized over 1.06 years. A summary of our stock options outstanding and exercisable as of October 31, 2024, is as follows:
|  | Options Outstanding |  |  | Options Exercisable |
|  |  |  |  |  |  |  |  |  | Weighted |  |  |  |  |  |  |  |  |  |  | Weighted |
|  |  |  |  |  |  |  |  |  | Average |  |  |  |  |  |  |  |  |  |  | Average |
Range of |  |  |  |  |  | Weighted |  |  | Remaining |  |  |  |  |  |  | Weighted |  |  | Remaining |
Exercise |  | Outstanding at |  |  | Average |  |  | Contractual |  |  | Exercisable at |  |  | Average |  |  | Contractual |
Prices |  | October 31, 2024 |  |  | Exercise Price |  |  | Term (Years) |  |  | October 31, 2024 |  |  | Exercise Price |  |  | Term (Years) |
$0.91 to $0.99 |  |  | 1,400,750 |  |  | $ | 0.92 |  |  |  | 5.51 |  |  |  | 1,400,750 |  |  | $ | 0.92 |  |  |  | 5.51 |
$1.00 to $1.99 |  |  | 475,000 |  |  |  | 1.10 |  |  |  | 5.71 |  |  |  | 475,000 |  |  |  | 1.10 |  |  |  | 5.71 |
$2.00 to $2.99 |  |  | 522,149 |  |  |  | 2.26 |  |  |  | 6.67 |  |  |  | 522,149 |  |  |  | 2.26 |  |  |  | 6.67 |
$3.00 to $3.99 |  |  | 2,041,229 |  |  |  | 3.61 |  |  |  | 7.91 |  |  |  | 1,458,559 |  |  |  | 3.68 |  |  |  | 7.68 |
$4.00 to $4.99 |  |  | 6,250 |  |  |  | 4.62 |  |  |  | 8.68 |  |  |  | 3,750 |  |  |  | 4.56 |  |  |  | 8.56 |
$5.00 to $5.99 |  |  | 422,381 |  |  |  | 5.48 |  |  |  | 9.71 |  |  |  | 57,556 |  |  |  | 5.45 |  |  |  | 9.64 |
$6.00 to $6.99 |  |  | 64,558 |  |  |  | 6.51 |  |  |  | 9.58 |  |  |  | 10,037 |  |  |  | 6.70 |  |  |  | 9.38 |
$7.00 to $7.63 |  |  | 10,000 |  |  |  | 7.63 |  |  |  | 9.23 |  |  |  | 2,500 |  |  |  | 7.63 |  |  |  | 9.23 |
|  |  | 4,942,317 |  |  | $ | 2.67 |  |  |  | 7.07 |  |  |  | 3,930,301 |  |  | $ | 2.23 |  |  |  | 6.57 |
Restricted Stock Units During the three months ended October 31, 2024, the Company granted 16,103 restricted stock units (“RSU”s) to one of our officers under our Stock Incentive Plan. RSUs granted during the period 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. The fair value of these RSUs was determined using the share prices at the respective grant dates. A summary of our outstanding and unvested RSUs as of October 31, 2024, is as follows:
|  | Number of |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Restricted Stock |  |  | Grant Date |  |  | Remaining Life |  |  | Aggregate |
Grant Date |  | Units |  |  | Fair Value |  |  | (Years) |  |  | Intrinsic Value |
May 01, 2022 |  |  | 19,608 |  |  |  | 4.25 |  |  |  | 0.58 |  |  |  | 145 |
July 29, 2022 |  |  | 92,015 |  |  |  | 3.98 |  |  |  | 0.83 |  |  |  | 683 |
July 31, 2023 |  |  | 413,593 |  |  |  | 3.32 |  |  |  | 1.83 |  |  |  | 3,069 |
Jan 02, 2024 |  |  | 1,166 |  |  |  | 6.44 |  |  |  | 2.26 |  |  |  | 9 |
Jan 22, 2024 |  |  | 8,919 |  |  |  | 7.63 |  |  |  | 0.31 |  |  |  | 66 |
Mar 13, 2024 |  |  | 2,288 |  |  |  | 6.49 |  |  |  | 0.45 |  |  |  | 17 |
Apr 01, 2024 |  |  | 20,000 |  |  |  | 7.07 |  |  |  | 2.50 |  |  |  | 148 |
Jul 26, 2024 |  |  | 610,091 |  |  |  | 5.49 |  |  |  | 2.82 |  |  |  | 4,527 |
Sep 1, 2024 |  |  | 1,417 |  |  |  | 5.23 |  |  |  | 0.92 |  |  |  | 11 |
Oct 1, 2024 |  |  | 16,103 |  |  |  | 6.21 |  |  |  | 3.00 |  |  |  | 119 |
|  |  | 1,185,200 |  |  | $ | 4.65 |  |  |  | 2.25 |  |  | $ | 8,794 |
During the three months ended October 31, 2024, our stock-based compensation related to RSUs was $0.75 million (three months ended October 31, 2023: $0.44 million). As at October 31, 2024, our unrecognized compensation costs related to unvested RSUs totaled $3.77 million ( July 31, 2024: $4.42 million), which is expected to be recognized over a period of approximately 1.68 years. Performance Based Restricted Stock Units During the three months ended October 31, 2024, our stock-based compensation related to the amortization of performance based restricted stock units (each, a “PRSU”) totaled $0.29 million (three months ended October 31, 2023: $0.18 million). As at October 31, 2024, our unrecognized compensation costs related to unvested PRSUs totaled $2.45 million ( July 31, 2024: $2.74 million), which is expected to be recognized over a period of approximately 2.31 years. Stock-Based Compensation A summary of our stock-based compensation expense for the three months ended October 31, 2024, is as follows:
|  | Three Months Ended |
|  | October 31, |
|  | 2024 |  |  | 2023 |
Stock-Based Compensation for Consultants |  |  |  |  |  |  |  |
Common stock issued to consultants |  | $ | 88 |  |  | $ | - |
Amortization of stock option expenses |  |  | 55 |  |  |  | 121 |
Amortization of RSU expenses |  |  | 17 |  |  |  | - |
|  |  | 160 |  |  |  | 121 |
Stock-Based Compensation for Management |  |  |  |  |  |  |  |
Amortization of stock option expenses |  |  | 207 |  |  |  | 208 |
Amortization of RSU and PRSU expenses |  |  | 968 |  |  |  | 594 |
|  |  | 1,175 |  |  |  | 802 |
Stock-Based Compensation for Employees |  |  |  |  |  |  |  |
Amortization of stock option expenses |  |  | 434 |  |  |  | 632 |
Amortization of RSU expenses |  |  | 52 |  |  |  | 17 |
|  |  | 486 |  |  |  | 649 |
|  | $ | 1,821 |  |  | $ | 1,572 |

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