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StockBased Compensation | 6 Months Ended
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Dec. 31, 2024
StockBased Compensation |
Stock-based Compensation | 9. Stock-Based Compensation Our directors, officers, and key employees are granted stock-based compensation through our Amended and Restated Omnibus Incentive Plan, as amended (the “Omnibus Plan”), through October 2018 and after that date, through our 2018 Stock and Incentive Compensation Plan (the “SICP”). Such stock-based compensation may include, among other things, incentive stock options, non-qualified stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”). The SICP is administered by the Compensation Committee of the Board of Directors. To date, our stockholders approved an aggregate of 7,215,625 shares of our Class A common stock for issuance pursuant to awards granted under the Omnibus Plan or SICP. As of December 31, 2024, 775,126 shares of Class A common stock were authorized and available for issuance pursuant to awards granted under the SICP. The Company’s executive officers are eligible to earn incentive compensation consisting of equity-based awards, as well as cash bonuses, based on the achievement of certain individual and/or Company performance goals set by the Compensation Committee. Stock-based compensation expense is based primarily on the fair value of the award as of the grant date and is recognized as an expense over the requisite service period. The following table shows total stock-based compensation expense for the three and six months ended December 31, 2024 and 2023, the majority of which is included in selling, general and administrative (“SG&A”) expenses in these unaudited Condensed Consolidated Statements of Comprehensive Income (Loss):
|  | Three Months Ended December 31, |  |  | Six Months Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Stock options |  | $ | 10,809 |  |  | $ | 30,037 |  |  | $ | 21,618 |  |  | $ | 61,515 |
RSAs |  |  | 59,531 |  |  |  | 108,922 |  |  |  | 166,218 |  |  |  | 131,309 |
RSUs |  |  | 171,206 |  |  |  | 172,820 |  |  |  | 318,185 |  |  |  | 359,030 |
Total |  | $ | 241,546 |  |  | $ | 311,779 |  |  | $ | 506,021 |  |  | $ | 551,854 |
We also adopted the LightPath Technologies, Inc. Employee Stock Purchase Plan (the “2014 ESPP”). The 2014 ESPP permits employees to purchase Class A common stock through payroll deductions, subject to certain limitations. A discount of approximately $1,100 and $2,000 for the six months ended December 31, 2024 and 2023, respectively, is included in SG&A expenses in these unaudited Condensed Consolidated Statements of Comprehensive Income (Loss), which represents the value of the 10% discount given to the employees purchasing stock under the 2014 ESPP. The 2014 ESPP expired in January 2025. Grant Date Fair Values and Underlying Assumptions; Contractual Terms We estimate the fair value of each stock option as of the date of grant, using the Black-Scholes-Merton pricing model. The fair value of 2014 ESPP shares is the amount of the discount the employee obtains at the date of the purchase transaction. Most stock options granted vest ratably over two to four years and are generally exercisable for ten years. The assumed forfeiture rates used in calculating the fair value of RSA and RSU grants was 0%, and the assumed forfeiture rates used in calculating the fair value of options for performance and service conditions were 20% for each of the six months ended December 31, 2024 and 2023. The volatility rate and expected term are based on seven-year historical trends in Class A common stock closing prices and actual forfeitures. The interest rate used is the U.S. Treasury interest rate for constant maturities. No stock options were granted during either of the six-month periods ended December 31, 2024 or 2023. Restricted Stock Awards RSAs are granted primarily to our executive officers, employees and consultants, and typically vest over a one to three year period from the date of grant, although some may vest immediately upon grant. The stock underlying RSAs is issued upon vesting. Restricted Stock Units RSUs are granted primarily to our directors, although RSU awards may also be made to executive officers, employees and consultants. RSUs typically vest over a one to four year period from the date of grant, although some may vest immediately upon grant. Information Regarding Current Share-Based Compensation Awards A summary of the activity for share-based compensation awards in the six months ended December 31, 2024 is presented below:
|  | Stock Options |  |  | Restricted Stock Units (RSUs) |  |  | Restricted Stock Awards (RSAs) |
|  |  |  |  | Weighted- |  |  | Weighted- |  |  |  |  |  | Weighted- |  |  |  |  |  | Weighted- |
|  |  |  |  | Average |  |  | Average |  |  |  |  |  | Average |  |  |  |  |  | Average |
|  |  |  |  | Exercise |  |  | Remaining |  |  |  |  |  | Remaining |  |  |  |  |  | Remaining |
|  | Shares |  |  | Price |  |  | Contract |  |  | Shares |  |  | Contract |  |  | Shares |  |  | Contract |
June 30, 2024 |  |  | 553,689 |  |  | $ | 2.02 |  |  |  | 5.4 |  |  |  | 1,250,132 |  |  |  | 0.8 |  |  |  | 161,540 |  |  |  | 1.5 |
Granted |  |  | — |  |  |  | — |  |  |  |  |  |  |  | 44,361 |  |  |  |  |  |  |  | 72,612 |  |  |  |  |
Exercised |  |  | (127,000 | ) |  | $ | 2.01 |  |  |  |  |  |  |  | (159,224 | ) |  |  |  |  |  |  | (136,604 | ) |  |  |  |
Cancelled/Forfeited |  |  | (28,794 | ) |  | $ | 2.96 |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  |  |
December 31, 2024 |  |  | 397,895 |  |  | $ | 1.96 |  |  |  | 5.6 |  |  |  | 1,135,269 |  |  |  | 0.5 |  |  |  | 97,548 |  |  |  | 1.2 |
Awards exercisable/ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vested as of |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2024 |  |  | 350,409 |  |  | $ | 1.92 |  |  |  | 5.3 |  |  |  | 587,351 |  |  |  | — |  |  |  | — |  |  |  | — |
Awards unexercisable/ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
unvested as of |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2024 |  |  | 47,486 |  |  | $ | 2.25 |  |  |  | 8.0 |  |  |  | 547,918 |  |  |  | 0.5 |  |  |  | 97,548 |  |  |  | 1.2 |
|  |  | 397,895 |  |  |  |  |  |  |  |  |  |  |  | 1,135,269 |  |  |  |  |  |  |  | 97,548 |  |  |  |  |
As of December 31, 2024, there was approximately $1.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements (including stock options, RSAs and RSUs) granted. We expect to recognize the compensation cost as follows:
Fiscal Year Ending: |  | Stock Options |  |  | RSAs |  |  | RSUs |  |  | Total |
June 30, 2025 (remaining six months) |  | $ | 36,202 |  |  | $ | 86,842 |  |  | $ | 331,510 |  |  | $ | 454,554 |
June 30, 2026 |  |  | 22,104 |  |  |  | 100,377 |  |  |  | 296,475 |  |  |  | 418,956 |
June 30, 2027 |  |  | 16,350 |  |  |  | 22,019 |  |  |  | 180,387 |  |  |  | 218,756 |
|  | $ | 74,656 |  |  | $ | 209,238 |  |  | $ | 808,372 |  |  | $ | 1,092,266 |

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