XML 43 R15.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Note 9 - Stock-based Compensation | 12 Months Ended
--- | ---
Jun. 30, 2018
Notes to Financial Statements |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. 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”), which was approved by shareholders on December 8, 2011. 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. The maximum aggregate number of shares of common stock of the Company with respect to which grants may be made to any individual is 100,000 shares during any calendar year. 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. Stock-based compensation expense for the years ended June 30, 2018 and June 30, 2017 was $2,468,645 and $1,787,558, respectively. The amount of compensation expense recognized does not reflect cash compensation actually received by the individuals during the current period, but rather represents the amount of expense recognized by the Company in accordance with GAAP. Under the 2010 Plan, options granted must have an exercise price equal to or greater than the market price of the Company’s common stock on the date of grant. The Company may grant key employees both incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, and stock options that are not qualified as incentive stock options. Stock option grants to non-employees, such as directors and consultants, may only be stock options that are not qualified as incentive stock options. Options generally expire after five years . Upon option exercise, the Company's policy is to issue new shares to option holders. 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. Expected volatilities are based on the historical weekly volatility of the Company's stock with a look back period equal to the expected term of the options. The expected dividend yield is zero as the Company has never declared and to does not anticipate declaring dividends on its common stock. The expected term of the options granted represent the period of time that the options are expected to be outstanding. The simplified method is used for estimating the expected term, due to the lack of historical stock option exercise activity. The risk-free interest rate is based on U.S. Treasury bills with a duration equal to or close to the expected term of the options at the time of grant. The total fair value of stock options vested in fiscal year 2018 and 2017 was approximately $ 0 . As of June 30, 2018, the total unrecognized compensation cost related to nonvested stock options was $0 . As of June 30, 2018 the stock options had a weighted average remaining life of 0.2 years. A summary of the status of stock options granted under the 2010 Plan as of June 30, 2018 and 2017, and changes during the fiscal years then ended, is presented in the table below:
|  | Year Ended June 30, |
|  | 2018 |  |  | 2017 |
|  |  |  |  |  | Weighted |  |  |  |  |  |  | Weighted |
|  | Shares |  |  | Average |  |  | Shares |  |  | Average |
|  | Under |  |  | Exercise |  |  | Under |  |  | Exercise |
|  | Options |  |  | Price |  |  | Options |  |  | Price |
Outstanding, beginning of year |  |  | 265,000 |  |  | $ | 10.00 |  |  |  | 405,000 |  |  | $ | 10.24 |
Granted |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Exercised |  |  | (229,375) |  |  | $ | 10.00 |  |  |  | (140,000) |  |  | $ | 10.69 |
Forfeited |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Cancelled |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Outstanding, end of year |  |  | 35,625 |  |  | $ | 10.01 |  |  |  | 265,000 |  |  | $ | 10.00 |
Aggregate intrinsic value |  | $ | 454,937 |  |  |  |  |  |  | $ | 2,232,848 |  |  |  |  |
Exercisable, end of year |  |  | 35,625 |  |  | $ | 10.01 |  |  |  | 265,000 |  |  | $ | 10.00 |
Aggregate intrinsic value |  | $ | 454,937 |  |  |  |  |  |  | $ | 2.232,848 |  |  |  |  |
Available for grant, end of year |  |  | 384,094 |  |  |  |  |  |  |  | 39,094 |  |  |  |  |
Weighted average fair value of options granted during the year (1) |  | $ | — |  |  |  |  |  |  | $ | — |  |  |  |  |
_______________ ( 1 ) There were no options granted during the years ended June 30, 2018 and 2017. The following table summarizes information regarding stock options granted under the Company's 2010 Plan that were outstanding at June 30, 2018:
|  |  |  | Options Outstanding |  |  | Options Exercisable |
|  |  |  | Number of |  |  | Weighted |  |  |  |  |  |  | Number of |  |  | Weighted |  |  |  |  |
|  |  |  | Shares |  |  | Average |  |  | Weighted |  |  | Shares |  |  | Average |  |  | Weighted |
|  |  |  | Under |  |  | Remaining |  |  | Average |  |  | Under |  |  | Remaining |  |  | Average |
Range of Exercise |  | Outstanding |  |  | Contractual |  |  | Exercise |  |  | Outstanding |  |  | Contractual |  |  | Exercise |
Price |  | Options |  |  | Life |  |  | Price |  |  | Options |  |  | Life |  |  | Price |
$10.00 | - | $10.99 |  |  | 35,625 |  |  |  | 0.2 |  |  | $ | 10.01 |  |  |  | 35,625 |  |  |  | 0.2 |  |  | $ | 10.01 |
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 its former technical consultant, the owner of Avalon. In December 2013, the Company's directors, executives and technical consultant were granted an aggregate of 95,000 shares of restricted stock. All of the restricted stock from both of those grants are fully vested. In November 2014, the Company granted 27,000 restricted shares of common stock to its executives. In January 2015, the Company granted an aggregate of 30,000 restricted shares of common stock to two of its non-executive directors. In addition, the Company granted 10,000 restricted shares of common stock to a former technical consultant. In September 2015, the Company granted 85,000 shares to its executives, and in December 2015 the Company granted 40,000 shares to its non-executive directors. In August 2016, the Company granted 100,000 restricted shares of common stock to its executives. In November 2016, the Company granted 75,000 restricted shares of common stock to its non-executive directors, and in November 2017 the Company granted 155,000 restricted shares to its executives and non-executive directors. As of June 30, 2018, there were 298,998 shares of such restricted stock that remained unvested. All restricted stock grants are expensed over the applicable vesting period based on the fair value at the date the stock is granted. The grant date fair value may differ from the fair value on the date the individual's restricted stock actually vests. A summary of the Company ’s restricted stock as of June 30, 2018 and June 30, 2017 and the change during the years then ended, is as follows:
|  | Number of Shares |  |  | Weighted Average Fair Value Per Share |
Nonvested balance at June 30, 2016 |  |  | 102,332 |  |  | $ | 4.54 |
Granted |  |  | 175,000 |  |  | $ | 21.29 |
Vested |  |  | (78,335 | ) |  | $ | 10.22 |
Forfeited |  |  | — |  |  | $ | — |
Nonvested balance at June 30, 2017 |  |  | 198,997 |  |  | $ | 17.03 |
Granted |  |  | 155,000 |  |  | $ | 19.50 |
Vested |  |  | (54,999 | ) |  | $ | 11.72 |
Forfeited |  |  | — |  |  | $ | — |
Nonvested balance at June 30, 2018 |  |  | 298,998 |  |  | $ | 19.12 |
As of June 30, 2018 , the total compensation cost related to nonvested restricted share awards not yet recognized was $2,771,361 . The remaining costs are expected to be recognized over the remaining vesting period of the awards.

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration