Note 17 - Stock-Based Compensation Plans

Total estimated stock-based compensation expense recognized in our condensed consolidated statement of operations was as follows:

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Differences between how GAAP and applicable income tax laws treat the amount and timing of recognition of stock-based compensation expense may result in a deferred tax asset. We have recorded a valuation allowance against any such deferred tax asset except for $2.1 million ($1.6 million at January 31, 2026) recognized in the United States and Canada. We realized a tax benefit (expense) of ($0.5) million and $0.5 million in connection with stock options exercised during the three and six month periods ended July 31, 2026, respectively, and a $0.1 million tax benefit for both the same periods in fiscal 2026.

Stock Options

As of July 31, 2026, we had 2,215,613 stock options granted and outstanding under our shareholder-approved stock option plan and 1,057,748 remained available for grant.

As of July 31, 2026, $24.9 million of total unrecognized compensation costs related to non-vested stock option awards is expected to be recognized over a weighted average period of 2.8 years. The total fair value of stock options vested during the three and six month periods ended July 31, 2026 was $0.3 million and $0.4 million, respectively.

For the three and six month periods ended July 31, 2026, 31,995 and 778,487 stock options, respectively, were granted compared to 50,750 and 382,191 stock options for the same periods in fiscal 2026. The weighted average grant-date fair value of stock options granted during the six month periods ended July 31, 2026 and July 31, 2025 was $21.59 per option and $30.55 per option, respectively.

The weighted-average assumptions were as follows:

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A summary of option activity under all of our plans is presented as follows:

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The total intrinsic value of stock options exercised during the three and six month periods ended July 31, 2026 was $0.2 million and $3.1 million, compared to $5.6 million and $12.4 million during the same periods of fiscal 2026, respectively.

Performance Share Units

A summary of PSU activity is as follows:

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The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate closing share price of our common shares on July 31, 2026) that would have been received by PSU holders if all PSUs had been vested on July 31, 2026.

As of July 31, 2026, $20.9 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of 2.1 years. The total fair value of PSUs vested during the three and six month periods ended July 31, 2026 was nil and $10.8 million, respectively.

Restricted Share Units

A summary of RSU activity is as follows:

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The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate closing share price of our common shares on July 31, 2026) that would have been received by RSU holders if all RSUs had been vested on July 31, 2026.

As of July 31, 2026, $9.6 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of 2.0 years. The total fair value of RSUs vested during both the three and six month periods ended July 31, 2026 was nil.

Deferred Share Unit Plan

As at July 31, 2026, the total number of DSUs held by participating directors was 316,875 (301,043 at January 31, 2026), representing an aggregate accrued liability of $23.1 million ($22.5 million at January 31, 2026). During the six month period ended July 31, 2026, 20,146 DSUs were granted. The fair value of the DSU liability is based on the closing price of our common shares at the balance sheet date. The total compensation cost (recovery) related to DSUs recognized during the three and six month periods ended July 31, 2026 was $2.3 million and $1.6 million, respectively, compared to $0.9 million and ($4.4) million for the same periods in fiscal 2026, respectively.

Cash-Settled Restricted Share Unit Plan

A summary of activity under our CRSU plan is as follows:

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We recognize the compensation cost of the CRSUs ratably over the service/vesting period relating to the grant and have recorded an aggregate accrued liability of $0.2 million at July 31, 2026 ($0.1 million at January 31, 2026). As at July 31, 2026, the unrecognized aggregate liability for the unvested CRSUs was $1.6 million ($0.8 million at January 31, 2026). The fair value of the CRSU liability is based on the closing price of our common shares at the balance sheet date. The total compensation cost related to CRSUs recognized during the three and six month periods ended July 31, 2026 was $0.2 million and $0.3 million, respectively, compared to $0.2 million and $0.4 million for the same periods in fiscal 2026, respectively.