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Note 11 - Stock Based Compensation | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock Based Compensation | 11. Stock Based Compensation On September 15, 2010, the Board adopted the Contango ORE, Inc. Equity Compensation Plan (the “2010 Plan”). On November 10, 2022, the stockholders of the Company approved and adopted the Second Amendment (the “Second Amendment”) to the Contango ORE, Inc. Amended and Restated 2010 Equity Compensation Plan (as amended, the “Amended Equity Plan”) which increased the number of shares of common stock that the Company may issue under the Amended Equity Plan by 600,000 shares. Under the Amended Equity Plan, the Board may issue up to 2,600,000 shares of common stock and options to officers, directors, employees or consultants of the Company. Awards made under the Amended Equity Plan are subject to such restrictions, terms and conditions, including forfeitures, if any, as may be determined by the Board. On November 14, 2023, the stockholders of the Company approved and adopted the 2023 Omnibus Incentive Plan (the “2023 Plan”) (together with the Amended Equity Plan referred to as the “Equity Plans”), which replaces the 2010 Plan with respect to new grants by the Company. Shares available for grant under the 2023 Plan consist of 193,500 shares of common stock plus (i) any shares remaining available for grant under the 2010 Plan (458,376 shares as of December 31, 2024), (ii) unexercised shares subject to appreciation awards (i.e. stock options or other stock-based awards based on the appreciation in value of a share of the Company’s common stock) granted under the 2010 Plan that expire, terminate, or are canceled for any reason without having been exercised in full, and (iii) shares subject to awards that are not appreciation awards granted under the 2010 Plan that are forfeited for any reason. As of December 31, 2024, there were 436,863 shares of unvested restricted common stock outstanding and 100,000 options to purchase shares of common stock outstanding issued under the Equity Plans. Stock-based compensation expense for the fiscal year ended December 31, 2024 was $2.6 million. Stock-based compensation expense for the six month period ended December 31, 2023 and fiscal year ended June 30, 2023 were $1.6 million and $2.9 million, respectively. The 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 US GAAP. 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. Stock Options. Under the Equity Plans, 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 4 - 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. There were no newly vested stock options in the fiscal year ended December 31, 2024, six month period ended December 31, 2023 or for the fiscal year ended June 30, 2023. As of December 31, 2024, the total unrecognized compensation cost related to nonvested stock options was nil. As of December 31, 2024, the stock options had a weighted average remaining life of 0.13 years. A summary of the status of stock options granted as of December 31, 2024, December 31, 2023, and June 30, 2023, and changes during the periods then ended, is presented in the table below:
|  | Fiscal Year Ended December 31, |  |  | Six Months Ended December 31, |  |  | Fiscal Year Ended June 30, |
|  | 2024 |  |  | 2023 |  |  | 2023 |
|  |  |  |  | Weighted |  |  |  |  |  | Weighted |  |  |  |  |  | Weighted |
|  | Shares |  |  | Average |  |  | Shares |  |  | Average |  |  | Shares |  |  | Average |
|  | Under |  |  | Exercise |  |  | Under |  |  | Exercise |  |  | Under |  |  | Exercise |
|  | Options |  |  | Price |  |  | Options |  |  | Price |  |  | Options |  |  | Price |
Outstanding, beginning of year |  |  | 100,000 |  |  | $ | 14.50 |  |  |  | 100,000 |  |  | $ | 14.50 |  |  |  | 100,000 |  |  | $ | 14.50 |
Granted |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Exercised |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Forfeited |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Cancelled |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Outstanding, end of year |  |  | 100,000 |  |  | $ | 14.50 |  |  |  | 100,000 |  |  | $ | 14.50 |  |  |  | 100,000 |  |  | $ | 14.50 |
Aggregate intrinsic value |  | $ | 431,000 |  |  |  |  |  | $ | 506,000 |  |  |  |  |  | $ | 1,133,000 |  |  |  |
Exercisable, end of year |  |  | 100,000 |  |  | $ | 14.50 |  |  |  | 100,000 |  |  | $ | 14.50 |  |  |  | 100,000 |  |  | $ | 14.50 |
Aggregate intrinsic value |  | $ | 431,000 |  |  |  |  |  | $ | 506,000 |  |  |  |  |  | $ | 1,133,000 |  |  |  |
Available for grant, end of year |  |  | 458,376 |  |  |  |  |  |  | 617,526 |  |  |  |  |  |  | 473,386 |  |  |  |
Weighted average fair value of options granted during the year (1) |  | $ | — |  |  |  |  |  | $ | — |  |  |  |  |  | $ | — |  |  |  |
(1) There were no options granted during the year ended December 31, 2024, six month period ended December 31, 2023 or fiscal years ended June 30, 2023. Restricted Stock. Under the Equity Plans, the Compensation Committee of the Board of Directors of the Company (the “Compensation Committee”) shall determine to what extent, and under what conditions, the Participant shall have the right to vote shares of Stock Awards and to receive any dividends or other distributions paid on such shares during the restriction period. The terms and applicable voting and dividend rights are outlined in the individual restricted stock agreements. 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. The total grant date fair value of the restricted stock granted for the fiscal year ended December 31, 2024 was $2.6 million. The total grant date fair value of the restricted stock granted in the six month period ended December 31, 2023 and fiscal year ended June 30, 2023 were $0.2 million and $7.0 million, respectively. As of December 31, 2024, there were 436,863 shares of such restricted stock that remained unvested and the total compensation cost related to nonvested restricted share awards not yet recognized was $1,718,376. The remaining costs are expected to be recognized over the remaining vesting period of the awards. Below table indicates the unvested restricted stock balance as of December 31, 2024 and December 31, 2023:
|  | Number of |
|  | restricted shares |
|  | unvested |
Balance - January 1, 2024 |  |  | 433,528 |
Restricted shares granted |  |  | 159,150 |
Restricted shares vested |  |  | (155,815 | )
Balance - December 31, 2024 |  |  | 436,863 |
Balance - July 1, 2023 |  |  | 429,376 |
Restricted shares granted |  |  | 10,819 |
Restricted shares vested |  |  | (6,667 | )
Balance - December 31, 2023 |  |  | 433,528 |

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