v3.26.1
Note 15 - Share-Based Payments
 3 Months Ended
May 31, 2026
Notes to Financial Statements  
Share-Based Payment Arrangement [Text Block]

15. Share-based Payments

 

Stock Options

 

The following table summarizes the continuity of the Company's stock options during the three month periods ended May 31, 2026 and 2025:

 

  

2026

  

2025

 
  

Number of

  

Weighted average

  

Number of

  

Weighted average

 
  

stock options

  

exercise price

  

stock options

  

exercise price

 

Outstanding, beginning of period

  6,243,138  $2.96   2,771,216  $5.25 

Granted

  1,082,179   1.44   2,801,922   1.16 

Exercised

  -   -   -   - 

Forfeited

  -   -   -   - 

Expired

  -   -   -   - 

Outstanding, end of period

  7,325,317  $5.59   5,573,138  $3.19 

Exercisable, end of period

  4,247,043  $3.74   2,711,727  $4.98 

 

The Company applies the fair value method of accounting for stock-based compensation awards granted. Fair value is calculated based on a Black-Scholes option pricing model. The principal components of the pricing model for the stock options granted in the three month period ended May 31, 2026 and 2025 were as follows:

 

  

2026

  

2025

 

Exercise price

 $1.44  $1.16 

Risk-free interest rate

  3.82%-3.89%    3.68% - 3.72% 

Expected dividend yield

  0%  0%

Expected volatility

  82.12%-84.31%   81%-82% 

Expected life (years)

  3.5 - 5.0 years   3.5 - 5.0 years 

 

The weighted-average grant-date fair value of options granted during the three month periods ended May 31, 2026 and 2025 was $0.94 and $0.63 respectively.

 

A summary of the Company’s nonvested shares as of May 31, 2026, and changes during the three month period ended  May 31, 2026 were as follows:

 

  

2026

 
  

Number of

  

Weighted average

 
  

stock options

  

exercise price

 

Nonvested, beginning of period

  3,461,411  $0.63 

Granted

  400,000   0.94 

Exercised

  -   - 

Forfeited

  -   - 

Vested

  (783,137)  0.75 

Nonvested, end of period

  3,078,274  $0.83 

 

During the three month periods ended  May 31, 2026 and 2025, stock-based compensation expense attributable to stock options amounted to $852 and $486, respectively. 

 

Restricted Stock Units

 

The following table summarizes the continuity of the restricted stock units during the three month periods ended May 31, 2026 and 2025:

 

  

2026

  

2025

 
      

Weighted average

      

Weighted average

 
  

Number of units

  

fair value price

  

Number of units

  

fair value price

 

Outstanding, beginning of period

  4,261,512  $6.35   4,466,958  $6.32 

Granted

  -   -   -   - 

Settled

  (42,816)  8.06   (98,087)  3.41 

Forfeited

  -   -   (387,750)  2.87 

Outstanding, end of period

  4,218,696  $6.35   3,981,121  $6.73 

Outstanding vested, end of period

  1,833,531  $5.71   1,689,255  $6.02 

 

The Company applies the fair value method of accounting for awards granted through the issuance of restricted stock units. Fair value is calculated based on the intrinsic value at grant date multiplied by the number of restricted stock unit awards granted.

 

During the three month periods ended May 31, 2026 and 2025, stock-based compensation attributable to RSUs amounted to $127 and $(111), respectively.

 

Stock-Based Compensation Expense

 

During the three month periods ended May 31, 2026 and 2025, stock-based compensation included in research and development expenses amounted to $458 and $312, respectively, and in general and administrative expenses amounted to $521 and $63, respectively.