Note 8 - Equity Transactions and Stock-based Compensation

6 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

Note 8. Equity Transactions and Stock-Based Compensation

In November, 2021, the Board of Directors authorized the issuance of 564,700 stock options to Company officers, employees and directors with an exercise price ranging from $0.95 to $1.045, vesting over one or three years, with terms of either five or ten years.  For the three and six months ended December 31, 2021 and 2020, the Company incurred stock-based compensation expense of $145 and $85, and $182 and $93, respectively.  The Company expects to record additional stock-based compensation of $616 over the remaining vesting period of approximately three years.

The Company used the following assumptions to calculate the fair value of the stock option grants using the Black-Scholes option pricing model on the measurement date during the six months ended December 31, 2021:

Risk Free Interest Rate		0.01% to 0.78	%
Volatility		115.1% to 169.0	%
Term	4 1/2 to 10 years
Dividend Rate		0.00	%
Closing Price of Common Stock	$	0.95

The Company calculates expected volatility for a stock-based grant based on historic daily stock price observations of its common stock during the period immediately preceding the grant that is equal in length to the expected term of the grant. The expected term of the options is estimated based on the Company’s historical exercise rate and forfeiture rates are estimated based on employment termination experience. The risk free interest rate is based on U.S. Treasury yields for securities in effect at the time of grants with terms approximating the term of the grants. The assumptions used in the Black-Scholes option valuation model are highly subjective, and can materially affect the resulting valuations.

A summary of the Company’s stock option activity, and related information for the six months ended December 31, 2021 follows:

				Weighted
				Average
				Exercise
	Options			Price
Outstanding as of June 30, 2021		3,916,666		$	0.26
Granted		564,700			0.97
Exercised		(28,667	)		0.24
Terminated		(15,033	)		0.33
Expired		-			-
Outstanding as of December 31, 2021		4,437,666		$	0.35
Exercisable at December 31, 2021		3,365,766		$	0.24