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Note 11 - Stock-based Compensation
 6 Months Ended
Feb. 28, 2025
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

11.

STOCK-BASED COMPENSATION

 

Stock Options

 

A summary of stock option activities under the Northern Technologies International Corporation 2024 Stock Incentive Plan (2024 Plan), the Northern Technologies International Corporation Amended and Restated 2019 Stock Incentive Plan and the Northern Technologies International Corporation Amended and Restated 2007 Stock Incentive Plan is as follows:

 

   

Number of Options Outstanding

    

Weighted Average Exercise Price

  

Outstanding as of August 31, 2024

     1,752,665     $ 11.47  

Granted

     245,190     $ 13.26  

Exercised

     —       —  

Outstanding as of February 28, 2025

     1,997,855     $ 11.69  

 

The weighted average per share fair value of options granted during the six months ended February 28, 2025 and February 29, 2024 was $4.95 and $5.04, respectively. The weighted average remaining contractual life of the options outstanding as of February 28, 2025 and February 29, 2024 was 6.03 years and 6.31 years, respectively.

 

The Company recognized stock option compensation expense of $602,821 and $694,874 during the six months ended February 28, 2025 and February 29, 2024, respectively. As of February 28, 2025, there was $1,618,997 of unrecognized stock option compensation expense. The amount is expected to be recognized over a period of 2.5 years.

 

 

Restricted Stock Units

 

Restricted stock units were granted under the 2024 Plan on September 1, 2024 to certain non-employee directors during the six months ended February 28, 2025 and vest in full on the one-year anniversary of the date of grant. A summary of restricted stock unit activity for the six months ended February 28, 2025 is as follows:

 

   

Number of Restricted Stock Units

    

Weighted Average Grant Date Fair Value

  

Outstanding as of August 31, 2024

     —     $ —  

Granted

     11,313       13.14  

Vested/Settled

     —       —  

Outstanding as of February 28, 2025

     11,313     $ 13.14  

 

Restricted stock units are valued using the closing stock price on the grant date. The Company recognizes the grant date fair value of the restricted stock units over the vesting term, or one year. For the six months ended February 28, 2025, the Company recognized $73,513 in stock-based compensation expense. As of February 28, 2025, there is an unrecognized stock-based compensation expense of $75,138, which is expected to be recognized over 0.50 years.