v3.25.4
Equity Compensation Awards
 6 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Equity Compensation Awards

16. Equity Compensation Awards

 

The Company has established the 2021 Equity Incentive Plan (“the Retention Plan”) to issue shares in the effort to retain key executives, directors, and employees. The Retention Plan allows for several different types of awards to be granted, including but not limited to, restricted share units and restricted share awards, collectively referred to as “share awards”. Share awards generally have the same expense characteristics under US GAAP and generally vest over a four-year period at a rate of 25% per annum.

 

Under the Retention Plan, the Company is authorized to issue shares of common stock to employees and non-employees up to ten percent (10%) of the total number of shares of common stock outstanding as of December 31, 2022, on a fully diluted basis. The Company adjusts the authorized shares under the plan each December 31, while the Retention Plan remains in effect. During the six months ended December 31, 2025, the Company granted 8.9 million share awards under the Retention Plan.

 

 

AMERICAN BATTERY TECHNOLOGY COMPANY

Notes to the Condensed Consolidated Financial Statements

(unaudited)

 

The table below reflects the share award activity for the six months ended December 31, 2025:

 

   Units  

Weighted-

Average

Grant Date

Fair Value

per Unit

 
         
Unvested share awards at June 30, 2025   8,583,466   $1.93 
Granted   8,029,895    2.13 
Vested   (1,537,760)   2.39 
Forfeitures   (965,073)  $2.29 
Unvested awards at September 30, 2025   14,110,528   $1.97 
Granted   860,625    2.80 
Vested   (1,199,690)   2.31 
Forfeitures   (164,912)  $1.92 
Unvested awards at December 31, 2025   13,606,551   $1.99 

 

As awards are granted, stock-based compensation equivalent to the fair market value of the underlying common stock on the date of grant is expensed over the requisite service period, generally four years with a maximum contractual term of ten years, using the graded vesting attribution method as acceptable under ASC 718, “Compensation-Stock Compensation.” The Company accounts for forfeitures as they occur. The fair value of share awards that vested during the six months ended December 31, 2025, totaled $4.0 million.

 

The Company recognized stock-based compensation expense of $5.5 million and $9.5 million for the six months ended December 31, 2025 and 2024, respectively. Of these amounts, $1.5 million and $3.9 million, respectively, were related to officers and directors of the Company. For the six months ended December 31, 2025 and 2024, total stock-based compensation expense included $0.9 million and $2.5 million, respectively, related to warrants awarded to officers of the Company.

 

As of December 31, 2025, there were approximately $16.6 million of unamortized expenses relating to outstanding equity compensation awards to be recognized over a remaining weighted-average period of 3.2 years.

 

The table below presents the stock-based compensation expense per respective line item on the condensed consolidated statements of operations for the six months ended December 31:

   

   December 31, 2025   December 31, 2024 
         
Cost of goods sold  $631,815   $267,449 
General and administrative   2,252,062    6,836,740 
Research and development   2,570,962    2,295,427 
Exploration   76,629    102,417 
Total stock-based compensation  $5,531,468   $9,502,030 

 

Executive officers and selected other key employees are eligible to receive common share performance-based awards, as determined by the board of directors. The payouts, in the form of share awards, vary based on the degree to which corporate operating objectives are met. These performance-based awards typically include a service-based requirement, which is generally four-years.