Note 12 - Stock-based Compensation

6 Months Ended

Jan. 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 and six months ended January 31, 2024, is as follows:

	Number of Stock			Weighted Average
	Options			Exercise Price
Balance, July 31, 2023		8,326,983		$	1.92
Granted		17,500			5.04
Exercised		(608,182	)		1.69
Cancelled/Forfeited		(191,259	)		1.59
Expired		(27,000	)		3.69
Balance, October 31, 2023		7,518,042			1.94
Granted		10,000			7.63
Exercised		(878,503	)		1.45
Balance, January 31, 2024		6,649,539		$	2.01

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

	Three Months Ended January 31,				Six Months Ended January 31,
	2024		2023		2024		2023
Number of Options Exercised on Cash Basis		100,425		-		289,675		138,537
Number of Options Exercised on Forfeiture Basis		778,078		197,110		1,197,010		2,389,795
Total Number of Options Exercised		878,503		197,110		1,486,685		2,528,332
Number of Shares Issued on Cash Exercise		100,425		-		289,675		138,537
Number of Shares Issued on Forfeiture Basis		569,574		94,302		826,185		1,360,366
Total Number of Shares Issued Upon Exercise of Options		669,999		94,302		1,115,860		1,498,903
Cash Received from Exercise of Stock Options	$	137	$	-	$	400	$	206
Total Intrinsic Value of Options Exercised	$	4,561	$	381	$	6,591	$	5,976

A continuity schedule of our outstanding unvested stock options as of January 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, 2023		1,803,265		$	2.28
Granted		17,500			3.36
Cancelled/Forfeited		(12,300	)		2.37
Vested		(133,062	)		2.18
Balance, October 31, 2023		1,675,403			2.29
Granted		10,000			5.05
Vested		(429,513	)		2.39
Balance, January 31, 2024		1,255,890		$	2.28

For the six months ended  January 31, 2024, the fair value of the stock options granted was estimated using the Black-Scholes model with the following assumptions, which is level 2 of the fair value measurement hierarchy:

Exercise Price	4.722 to7.6363
Expected Risk Free Interest Rate	3.99% to 4.67%
Expected Volatility	79.30% to 79.53%
Expected Life in Years	5
Expected Dividend Yield	0.00%

As at January 31, 2024, the aggregate intrinsic value of all of our outstanding stock options was estimated at $37,408 (vested: $32,300 and unvested: $5,108). As at January 31, 2024, our unrecognized compensation cost related to unvested stock options was $1,508, which is expected to be recognized over 1.08 years.

A summary of our stock options outstanding and exercisable as of January 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	January 31, 2024		Exercise Price		Term (Years)		January 31, 2024		Exercise Price		Term (Years)
$0.80 to $0.99		2,402,500	$	0.92		5.99		2,402,500	$	0.92		5.99
$1.00 to $1.99		1,350,000		1.11		6.34		1,350,000		1.11		6.34
$2.00 to $2.99		608,399		2.24		7.43		608,399		2.24		7.43
$3.00 to $3.99		2,258,640		3.60		8.68		1,030,562		3.72		8.40
$4.00 to $4.99		7,500		4.48		9.31		625		4.72		9.60
$5.00 to $5.99		12,500		5.16		9.66		1,563		5.16		9.66
$7.00 to $7.63		10,000		7.63		9.98		-		-		-
		6,649,539	$	2.01		7.12		5,393,649	$	1.65		6.70

Restricted Stock Units

A summary of our outstanding and unvested restricted stock units (“RSU”s) as of January 31, 2024, is as follows:

	Number of
	Restricted Stock		Grant Date		Remaining Life		Aggregate
Grant Date	Units		Fair Value		(Years)		Intrinsic Value
July 21, 2021		135,875		2.15		0.47		1,038
May 1, 2022		39,216		4.25		1.25		300
July 29, 2022		184,023		3.98		1.49		1,406
July 31, 2023		620,386		3.32		2.50		4,740
January 2, 2024		1,166		6.44		2.92		9
January 22, 2024		8,919		7.63		2.98		68
		989,585	$	3.36		1.98	$	7,561

During the three and six months ended January 31, 2024, our stock-based compensation related to RSUs was $437 and $873 (three and six months ended January 31, 2023: $293 and $586), respectively.  As at January 31, 2024, our unrecognized compensation costs related to unvested RSUs totaled $1,858, which is expected to be recognized over a period of approximately 1.52 years.

Performance Based Restricted Stock Units

During the three and six months ended January 31, 2024, stock-based compensation related to the amortization of target performance based restricted stock units (“PRSU”s) totaled $176 and $353 (three and six months ended January 31, 2023: $99 and $198).  As at January 31, 2024, unrecognized compensation costs relating to unvested PRSUs totaled $1,154, which is expected to be recognized over a period of approximately 2.08 years.

Stock-Based Compensation

A summary of our stock-based compensation expense as of January 31, 2024, is as follows:

	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2024		2023		2024		2023
Stock-Based Compensation for Consultants
Common stock issued to consultants	$	-	$	127	$	-	$	275
Amortization of stock option expenses		94		144		215		372
		94		271		215		647
Stock-Based Compensation for Management
Amortization of stock option expenses		160		95		368		228
Amortization of RSU and PRSU expenses		595		353		1,189		707
		755		448		1,557		935
Stock-Based Compensation for Employees
Common stock issued to employees		-		240		-		487
Amortization of stock option expenses		445		454		1,077		1,127
Amortization of RSU expenses		18		39		35		77
		463		733		1,112		1,691
	$	1,312	$	1,452	$	2,884	$	3,273