Note 10 - Stock-based Compensation

3 Months Ended

Nov. 30, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

10.         STOCK-BASED COMPENSATION

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

	Number of Options Outstanding		Weighted Average Exercise Price
Outstanding as of August 31, 2023		1,557,131	$	11.08
Granted		269,845	$	13.25
Exercised		—		—
Cancelled/Forfeited		—		—
Outstanding as of November 30, 2023		1,826,976	$	11.40

The weighted average per share fair value of options granted during the three months ended November 30, 2023 and 2022 was $5.05 and $4.85, respectively. The weighted average remaining contractual life of the options outstanding as of November 30, 2023 and 2022 was 6.55 years and 6.66 years, respectively.

The Company recognized compensation expense of $350,933 and $329,522 during the three months ended November 30, 2023 and 2022, respectively. As of November 30, 2023, there was $2,037,871 of unrecognized compensation expense. The amount is expected to be recognized over a period of 2.75 years.