Note 17 - Stock-based Compensation

12 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

NOTE 17: STOCK-BASED COMPENSATION

Stock Options

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, we granted stock options under our stock incentive plans to certain of our directors, officers, employees and consultants to purchase an aggregate of 3,507,004 , 1,279,692 and 959,588 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 12, 18 and 24 months after the grant date, 25% of the total stock options become exercisable.  In addition, during Fiscal 2023, we granted performance stock options (the “PSO”s) under our current stock incentive plan to certain of our directors and officers to purchase an aggregate of 150,367 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 Valuation Model, with the following weighted average assumptions:

	Year Ended July 31,
	2023 (1)			2022			2021
Expected Risk Free Interest Rate		4.14	%		2.73	%		0.70	%
Expected Volatility		79.43	%		78.75	%		72.57	%
Expected Life in Years		4.90			4.96			5.00
Expected Dividend Yield		0	%		0	%		0	%
Weighted-Average Grant Date Fair Value	$	2.18		$	2.45		$	1.30

⁽¹⁾ The assumptions used for the fair value measurement of the Replacement Options are excluded in the table below as they have been separately disclosed in Note 3. 

A continuity schedule of outstanding stock options as at July 31, 2023, and the changes during the fiscal year periods, is as follows:

	Number of Stock Options			Weighted Average Exercise Price
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
Granted		1,279,692			3.80
Exercised		(2,728,498	)		1.17
Expired		(75,000	)		2.50
Balance, July 31, 2022		8,880,527			1.58
Granted		3,507,004			2.46
Exercised		(3,995,897	)		1.63
Forfeited		(24,651	)		3.18
Expired		(40,000	)		1.53
Balance, July 31, 2023		8,326,983		$	1.92

The table below sets forth the number of shares issued and cash received upon exercise of stock options:

	Year Ended July 31,
	2023		2022		2021
Number of Options Exercised on Cash Basis		365,537		872,580		1,734,127
Number of Options Exercised on Forfeiture Basis		3,630,360		1,855,918		2,970,878
Total Number of Options Exercised		3,995,897		2,728,498		4,705,005
Number of Shares Issued on Cash Exercise		365,537		872,580		1,734,127
Number of Shares Issued on Forfeiture Basis		1,986,007		1,279,515		1,592,128
Total Number of Shares Issued Upon Exercise of Options		2,351,544		2,152,095		3,326,255
Cash Received from Exercise of Stock Options	$	553	$	934	$	1,916
Total Intrinsic Value of Options Exercised	$	8,867	$	8,336	$	6,882

A continuity schedule of outstanding unvested stock options at July 31, 2023, 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, 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
Granted		1,279,692			2.45
Vested		(2,984,745	)		0.59
Balance, July 31, 2022		2,186,154			1.79
Issuance of Replacement Options (Note 3)		2,301,750			1.75
Granted		1,205,254			2.18
Forfeited		(24,651	)		2.00
Vested		(3,865,242	)		1.66
Balance, July 31, 2023		1,803,265		$	2.28

As at July 31, 2023, the aggregate intrinsic value of all outstanding stock options granted was estimated at $14,458 (vested: $14,121 and unvested: $337).  As at July 31, 2023, the unrecognized compensation cost related to unvested stock options was $3,086 expected to be recognized over 1.21 years.

A summary of stock options outstanding and exercisable as at July 31, 2023 is as follows:

	Options Outstanding						Options Exercisable
Range of Exercise	Outstanding at		Weighted Average		Weighted Average Remaining Contractual Term		Exercisable at		Weighted Average		Weighted Average Remaining Contractual Term
Prices	July 31, 2023		Exercise Price		(Years)		July 31, 2023		Exercise Price		(Years)
$0.80 to $0.99		3,513,999	$	0.92		6.52		3,513,999	$	0.92		6.52
$1.00 to $1.99		1,390,500		1.12		6.72		1,390,500		1.12		6.72
$2.00 to $2.99		868,189		2.23		7.85		865,689		2.22		7.85
$3.00 to $3.99		2,549,295		3.62		8.91		752,280		3.79		7.89
$4.00 to $4.23		5,000		4.23		9.23		1,250		4.23		9.23
		8,326,983	$	1.92		7.43		6,523,718	$	1.47		6.90

Restricted Stock Units

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, the Company granted RSUs to certain directors and officers of the Company under our then stock incentive plans. RSUs granted during Fiscal 2023 and Fiscal 2022 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 2021 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, 2023, and the changes during the fiscal year end periods, is as follows:

	Number of Restricted			Weighted Average
	Stock Units			Grant Date Fair Value
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
Granted		346,790			4.03
Vested		(508,368	)		1.25
Balance, July 31, 2022		836,034			2.61
Granted		620,386			3.32
Vested		(464,985	)		2.02
Forfeited		(11,935	)		3.98
Balance, July 31, 2023		979,500		$	3.32

A summary of outstanding unvested RSUs as at July 31, 2023, is as follows:

	Number of Restricted		Grant Date		Remaining Life		Aggregate Intrinsic
Grant Date	Stock Units		Fair Value		(Years)		Value
July 21, 2021		135,875	$	2.15		0.98	$	489
May 01, 2022		39,216		4.25		1.75		141
July 29, 2022		184,023		3.98		2.00		662
July 31, 2023		620,386		3.32		3.00		2,233
		979,500	$	3.32		2.48	$	3,525

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, the number of RSUs vested, the net RSU shares issued and the net RSU shares forfeited as payments of tax withholding amounts are as follows:

	Year Ended July 31,
	2023		2022		2021
Number of RSUs vested		464,985		508,368		1,025,005
Number of net RSU shares issued		261,232		267,681		536,361
Number of RSU shares forfeited as payments of withholding amount		203,753		240,687		488,644

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, stock-based compensation relating to the RSUs were $1,105, $780 and $1,060, respectively.

As at July 31, 2023, unrecognized compensation costs related to unvested RSUs totaled $2,656, which is expected to be recognized over a period of approximately 1.87 years.

Performance Based Restricted Stock Units

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, the Company granted 551,923, 241,632 and 492,950 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 then stock incentive plans.  These PRSUs vest based on certain performance goals measured by 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”). 

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 were valued using the Monte Carlo Simulation Model at the date of grant with the following principal assumptions.

	Year Ended July 31,
	2023			2022			2021
Expected Risk Free Interest Rate		4.52	%		2.80	%		0.39	%
Expected Volatility		84.56	%		90.90	%		78.03	%
Expected Dividend Yield		0	%		0	%		0	%
Expected Life in Years		3.00			3.00			3.00
Correlation		81.22	%		76.89	%		66.02	%
Grant Price	$	3.32		$	3.98		$	2.15
Grant Date Fair Value	$	3.35		$	4.80		$	2.48

A continuity schedule of unvested PRSUs as at July 31, 2023, and the changes during the fiscal year end periods, is as follows:

	Number of Unvested			Weighted Average Grant Date
	PRSUs			Fair Value
Balance, July 31, 2020		757,501		$	1.15
Granted		492,950			2.48
Balance, July 31, 2021		1,250,451			1.67
Granted		241,632			4.80
Vested		(757,501	)		1.15
Balance, July 31, 2022		734,582			3.24
Granted		551,923			3.35
Balance, July 31, 2023		1,286,505		$	3.29

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, stock-based compensation related to amortization of PRSUs totaled $397, $293 and $156, respectively.  As at July 31, 2023, unrecognized compensation costs relating to unvested PRSUs totaled $1,507, which is expected to be recognized over a weighted average period of approximately 2.45 years.

Stock-Based Compensation

A summary of stock-based compensation expense for Fiscal 2023, Fiscal 2022 and Fiscal 2021, is as follows:

	Year Ended July 31,
	2023		2022		2021
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	445	$	770	$	877
Amortization of stock option expenses		561		220		288
		1,006		990		1,165
Stock-Based Compensation for Management
Common stock issued to management		-		-		135
Amortization of stock option expenses		400		471		774
Amortization of RSU and PRSU expenses		1,370		1,035		1,215
		1,770		1,506		2,124
Stock-Based Compensation for Employees
Common stock issued to employees		888		1,187		1,200
Amortization of stock option expenses		1,727		960		982
Amortization of RSU expenses		132		38		-
		2,747		2,185		2,182
	$	5,523	$	4,681	$	5,471