Stock Based Compensation

9 Months Ended

Mar. 31, 2024

Stock Based Compensation

Stock Based Compensation

Note 12. Stock Based Compensation

The Board of Directors of the Company may from time to time, in its discretion grant to directors, officers, consultants and employees of the Company, non-transferable options to purchase common shares. The options are exercisable for a period of up to 10 years from the date of the grant.

The following table reflects the continuity of stock options for the nine months ended March 31, 2024:

A summary of stock option activity during the nine months ended March 31, 2024 is as follows:

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2023		4,839,278		$	3.31		6.23	$	1,342,280
Forfeited		(532,000	)		4.34		-		-
Granted		400,000			1.47		1		32,000
Options outstanding at March31, 2024		4,791,278		$	3.36		5.44	$	-
Options exercisable at March 31, 2024 (vested)		4,557,361		$	2.92		5.50		-

A summary of stock option activity during the nine months ended March 31, 2023 is as follows:

				Weighted		Average
				Average		Remaining		Aggregated
	Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life (Years)		Value
Outstanding at June 30, 2022		4,279,888		$	3.05		7.42	$	4,919,182
Forfeited		(143,613	)		1.21		-		-
Granted		897,000			2.52		10		-
Options outstanding at March31, 2023		5,033,275		$	3.38		6.42	$	4,724,980
Options exercisable at March 31, 2023 (vested)		3,894,776		$	3.04		6.72		4,550,343

Stock-based compensation expense attributable to stock options was $212,758 and $1,146,299 for the three months ended March 31, 2024, and 2023, respectively.  Stock-based compensation expense attributable to stock options was $965,229 and $3,126,472 for the nine months ended March 31, 2024, and 2023, respectively.  As of March 31, 2024, there was $330,455 of unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was approximately year.

The value of each grant is estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the nine months ended March31, 2024 and March 31, 2023:

	March 31, 2024			March 31, 2023
Dividend rate		-			-
Risk free interest rate		3.95	%		2.07-4.06	%
Expected term		1			1
Expected volatility		63	%	70-77		%
Grant date stock price	$	1.47		$	3.87-5.30

The basis for the above assumptions are as follows: the dividend rate is based upon the Company’s history of dividends; the risk-free interest rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant; the expected term was calculated based on the Company’s historical pattern of options granted and the period of time they are expected to be outstanding; and expected volatility was calculated based upon historical trends in the Company’s stock prices.

Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based on historical experience of forfeitures, the Company estimated forfeitures at 0% for each of the nine months ended March 31, 2024 and 2023.