Capital Stock

9 Months Ended

Mar. 31, 2023

Equity [Abstract]

Capital Stock

Note 5. Capital Stock

Authorized Capital

Authorized capital stock consists of 200,000,000 common shares with par value of $0.01 per common share (June 30, 2022 – 200,000,000 common shares with par value $0.01 per common share).

For the three months ended March 31, 2023, the Company issued 938,658 shares of Common Stock from its ATM program for net proceeds of $315,175 and issued 458,316 shares for payment of interest accrued (Note 6) with a fair value of $160,413. The Company also issued 425,500 shares related to awards made under its equity compensation plans.

For the three months ended March 31, 2022, the Company issued 5,465,330 shares of Common Stock from its ATM program for net proceeds of $4,316,005 and issued 235,894 shares for payment of interest accrued (Note 6) with a fair value of $160,413. The Company also issued 266,000 shares related to awards made under its equity compensation plans.

For the nine months ended March 31, 2023, the Company issued 799,613 shares for payment of interest accrued (Note 6) with a fair value of $320,826 and issued 1,393,667 shares from its ATM program for net proceeds of $473,688. The Company also issued 425,500 shares related to awards made under its equity compensation plans.

For the nine months ended March 31, 2022, the Company issued 404,584 shares for payment of interest accrued (Note 6) with a fair value of $324,055 and issued 7,766,388 shares from its ATM for net proceeds of $6,214,480. The Company also issued 266,000 shares related to awards made under its equity compensation plans.

Stock Options, Restricted Stock Units and Stock Based Compensation

Paramount’s 2015 and 2016 Stock Incentive and Compensation Plans, which are stockholder-approved, permits the grant of stock options, restricted stock units and stock to its employees and directors for up to 3.5 million shares of common stock.

Total stock-based compensation for the three months ended March 31, 2023 and 2022 were $93,260 and $231,629, respectively.

Total stock-based compensation for the nine months ended March 31, 2023 and 2022 were $278,346 and $318,840, respectively.

Stock Options

Stock option awards are generally granted with an exercise price equal to the market price of Paramount’s stock at the date of grant and have contractual lives of 5 years. To better align the interests of its key executives, employees and directors with those of its shareholders a significant portion of those share option awards will vest contingent upon meeting certain stock price appreciation performance goals and other performance conditions. Option and share awards provide for accelerated vesting if there is a change in control (as defined in the Stock Incentive and Compensation Plans).

For the three months ended March 31, 2023, the Company did not grant stock options (2022 – nil).

For the nine months ended March 31, 2023, the Company granted 50,000 stock options (2022 - nil) with an exercise price of $0.60 and a term of 5 years. The stock options vested immediately on the date of grant.

The fair value for options granted for the nine months ended March 31, 2023 was calculated using the Black-Scholes option valuations method. The weighted average assumptions used were as follows:

	Nine Months Ended March 31, 2023			Nine Months Ended March 31, 2022
Weighted average risk-free interest rate		2.79	%	N/A
Weighted-average volatility		58	%	N/A
Expected dividends	0			N/A
Weighted average expected term (years)	5			N/A
Weighted average fair value	$	0.19		N/A

For the three months ended March 31, 2023, share-based compensation expense relating to service condition options and performance condition options was $nil and $2,856, respectively (2022 - $1,405 and $5,462).

For the nine months ended March 31, 2023, share-based compensation expense relating to service condition options and performance condition options was $12,021 and $9,689, respectively (2022 -$49,455 and $41,962).

A summary of stock option activity under the Stock Incentive and Compensation Plans as of March 31, 2023 is presented below:

Options	Options			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at June 30, 2021		1,998,995		$	1.17		3.31	$	—
Granted		—			—		—		—
Exercised		—			—		—		—
Forfeited or expired		(190,000	)		1.42		1.48		—
Outstanding at June 30, 2022		1,808,995		$	1.14		2.42	$	—
Granted		50,000			0.60		4.75		—
Exercised		—			—		—		—
Forfeited or expired		(303,995	)		1.40		—		—
Outstanding at March 31, 2023		1,555,000		$	1.08		2.11	$	—
Exercisable at March 31, 2023		1,096,664		$	1.08		2.09	$	—

A summary of the status of Paramount’s non-vested options as at March 31, 2023 is presented below:

Non-vested Options	Options			Weighted- Average Grant- Date Fair Value
Non-vested at June 30, 2021		1,033,998		$	0.55
Granted		—			—
Vested		(288,332	)		0.53
Forfeited or expired		(88,333	)		0.73
Non-vested at June 30, 2022		657,333		$	0.55
Granted		50,000			0.19
Vested		(95,002	)		0.28
Forfeited or expired		(153,995	)		0.74
Non-vested at March 31, 2023		458,336		$	0.47

As of March 31, 2023, there was approximately $10,204 of unamortized stock-based compensation expense related to non-vested stock options outstanding. The expenses are expected to be recognized over a weighted-average period of 1.18 years. The total fair value of stock based compensation that vested related to outstanding stock options during the three months ended March 31, 2023 and 2022, was $16,873 and $nil, respectively.

Restricted Stock Units ("RSUs")

RSUs are awards for service and performance which upon vesting and settlement entitle the recipient to receive one common share of the Company's Common Stock for no additional consideration, for each RSU held.

For the three months ended March 31, 2023 and 2022, the Company granted 630,000 and 701,000 respectively.

For the three months ended March 31, 2023, share-based compensation expenses related to service condition RSUs and performance condition RSUs was $43,896 and $28,262, respectively (2022 - $nil and $nil)

For the nine months ended March 31, 2023, share-based compensation expenses related to service condition RSUs and performance condition RSUs was $117,116 and $116,971, respectively (2022 -$nil and $nil)

A summary of RSUs activity is summarized as follows:

Restricted Share Unit Activity	Outstanding RSUs		Weighted average grant date fair value
Outstanding at June 30, 2021		—	$	—
Granted		701,000		0.65
Vested		—		—
Forfeited		—		—
Outstanding at June 30, 2022		701,000	$	0.65
Granted		630,000		0.30
Vested		350,500		0.65
Forfeited		—		—
Outstanding at March 31, 2023		980,500	$	0.43

As of March 31, 2023, there was approximately $237,002 of unamortized stock-based compensation expense related to outstanding RSUs. The expenses are expected to be recognized over the remaining weighted-average vesting periods of 1.01 years.