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Stock Based Compensation | 3 Months Ended
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Sep. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock Based Compensation | Stock-Based Compensation On September 15, 2010, the Company’s Board of Directors (the “Board”) adopted the Contango ORE, Inc. Equity Compensation Plan (the “2010 Plan”). Under the 2010 Plan, the Board may issue up to 1,000,000 shares of common stock and options to officers, directors, employees or consultants of the Company. Awards made under the 2010 Plan are subject to such restrictions, terms and conditions, including forfeitures, if any, as may be determined by the Board. As of September 30, 2016, there were 147,331 shares of unvested restricted common stock outstanding and options to purchase 325,000 shares of common stock outstanding issued under the 2010 Plan. Stock-based compensation expense for the three months ended September 30, 2016 and 2015 was $628,344 and $220,623, respectively. The amount of compensation expense recognized does not reflect compensation actually received by the individuals, but rather represents the amount recognized by the Company in accordance with GAAP. Restricted Stock. In November 2010, the Company granted 70,429 restricted shares of common stock to its executives and directors and an additional 23,477 restricted shares to a former technical consultant. All of the restricted stock from this grant was fully vested as of September 30, 2016. In December 2013, the Company's directors, executives, and a former technical consultant were granted an aggregate of 95,000 shares of restricted stock. The restricted stock vests over two years, beginning with one-third vesting on the date of grant. As of September 30, 2016, all of the restricted stock granted in December 2013 was vested. In November 2014, the Company granted 27,000 restricted shares of common stock to its executives. The restricted stock was originally set to vest over two years, beginning with one-third vesting on the date of grant. In September 2016, the restricted stock agreements were modified. The final one-third of the grant will now vest in January 2019. As of September 30, 2016, there were 9,000 shares of such restricted stock that remained unvested. In January 2015, the Company granted an aggregate of 30,000 restricted shares of common stock to two of its non-executive directors, 10,000 shares vested immediately and the remaining two-thirds will vest equally over two years. In addition, the Company granted 10,000 restricted shares of common stock to a former technical consultant which vested immediately. The Compensation Committee also elected to immediately vest all of the stock options and restricted stock previously issued to the former technical consultant. As of September 30, 2016, there were 10,000 shares of such restricted stock that remained unvested. In September 2015, the Company granted 85,000 restricted shares of common stock to its executives. The restricted stock was originally set to vest over two years, beginning with one-third vesting on the date of grant. In September 2016, the restricted stock agreements for two executives were modified such that the final one-third of their restricted stock grant will vest in January 2019. As of September 30, 2016, there were 28,332 shares of such restricted stock that remained unvested. In December 2015, the Company granted 40,000 restricted shares of common stock to two of its non-executive directors. The restricted stock vests over two years, beginning with one-third vesting on the date of grant. As of September 30, 2016, there were 26,666 shares of such restricted stock that remained unvested. In August 2016, the Company granted 100,000 restricted shares of common stock to its executives. A portion of the restricted stock granted vests over two years, beginning one-third on the date of grant. The remainder of the restricted stock granted vests in January 2019. As of September 30, 2016, there were 73,333 shares of such restricted stock that remained unvested. As of September 30, 2016, the total compensation cost related to unvested awards not yet recognized was $1,720,520. The remaining costs will be recognized over the remaining vesting period of the awards. Stock Options. The option awards listed in the table below have been granted to directors, executives and consultants of the Company:
Option Awards |
Period Granted |  | Options Granted |  | Weighted Average Exercise Price |  | Vesting Period (7) | Expiration Date
September 2011 (1) |  | 50,000 |  | $13.13 |  | Vests over two years, beginning with one-third on the grant date. | September 2016
July 2012 (2) |  | 100,000 |  | $10.25 |  | Vests over two years, beginning with one-third on the grant date. | July 2017
December 2012 (3) |  | 250,000 |  | $10.20 |  | Vests over two years, beginning with one-third on the grant date. | December 2017
June 2013 (4) |  | 37,500 |  | $10.00 |  | Vested Immediately | June 2018
July 2013 (5) |  | 5,000 |  | $10.00 |  | Vested Immediately | July 2018
September 2013 (6) |  | 37,500 |  | $10.01 |  | Vested Immediately | September 2018
September 2013 (6) |  | 15,000 |  | $10.01 |  | Vests over two years, beginning with one-third on the grant date. | September 2018
(1) The Company granted 40,000 stock options to its directors and executives and an additional 10,000 stock options to a former technical consultant, for services performed during fiscal year 2011. (2) The Company granted 75,000 stock options to its directors and executives and an additional 25,000 stock options to a former technical consultant for services performed during fiscal year 2012. Of the total options granted as a part of this grant, 25,000 were later forfeited. (3) The Company granted 175,000 stock options to its directors and executives and an additional 75,000 stock options to a former technical consultant for services performed during fiscal year 2013. Of the total options granted as a part of this grant, 50,000 were later forfeited. (4) The Company granted 37,500 stock options to its executives for services performed during fiscal year 2013. (5) The Company granted 5,000 stock options to an employee of Avalon for services performed during fiscal year 2013. (6) The Company granted 52,500 stock options to its executives for services performed during the first quarter of fiscal year 2014. (7) If at any time there occurs a change of control, as defined in the 2010 Plan, any options that are unvested at that time will immediately vest. The Company's Compensation Committee has determined that the Transactions do not constitute a change of control under the 2010 Plan. In August 2016, the Company's current and former executives, directors, and consultants cashless exercised 80,000 stock options resulting in no proceeds. The Company applies the fair value method to account for stock option expense. Under this method, cash flows from the exercise of stock options resulting from tax benefits in excess of recognized cumulative compensation cost (excess tax benefits) are classified as financing cash flows. See Note 3 – Summary of Significant Accounting Policies. All employee stock option grants are expensed over the stock option’s vesting period based on the fair value at the date the options are granted. The fair value of each option is estimated as of the date of grant using the Black-Scholes options-pricing model. As of September 30, 2016, the stock options had a weighted-average remaining life of approximately 1 year. The total compensation cost related to these options had been fully recognized as of September 30, 2016 as all of the options are fully vested. A summary of the status of stock options granted under the 2010 Plan as of September 30, 2016 and changes during the three months then ended, is presented in the table below:
|  | Three Months Ended September 30, 2016
|  | Shares Under Options |  | Weighted Average Exercise Price
Outstanding, June 30, 2016 |  | 405,000 |  |  | $10.24
Granted |  | — |  |  | — |
Exercised |  | (80,000 | ) |  | $11.20
Forfeited |  | — |  |  | — |
Outstanding, September 30, 2016 |  | 325,000 |  |  | $10.00
Aggregate intrinsic value |  | $ | 1,936,550 |  |  |
Exercisable, end of period |  | 325,000 |  |  | $10.00
Aggregate intrinsic value |  | $ | 1,936,550 |  |  |
Available for grant, end of period |  | 114,094 |  |  |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51659978&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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