XML 76 R11.htm IDEA: XBRL DOCUMENT v3.25.1
Stock-Based Compensation
 6 Months Ended 12 Months Ended
Dec. 31, 2024
Jun. 30, 2024
Stock-Based Compensation [Abstract]    
Stock-Based Compensation

Note 5 – Stock-Based Compensation

 

Restricted Stock Awards

 

In June 2021, the Company sold 723,008 shares of common stock to certain individuals in exchange for future management advisory services, for discounted prices price ranging from $.0104 to $.0195 per share. The shares are subject to restrictions that allow for repurchase of the shares by the Company due to a termination of the service agreement or other certain provisions. This repurchase right declines on a pro-rata basis over vesting periods (corresponding to the service period) ranging from 2-4 years. Related to these issuances, the Company has recorded deferred compensation of $1,372,435 for the value of the shares in excess of the purchase price paid by the advisors. The deferred compensation was expensed as consulting expense in the consolidated statements of operation over the service period.

In March 2022, the Company signed an agreement to issue 150,000 shares of common stock valued at $300,000 to a consultant for providing consulting services to the Company for eighteen months. Related to these issuances, the Company has recorded deferred compensation of $300,000, which was expensed as consulting expense in the consolidated statements of operation over the eighteen months.

 

For the three months ended December 31, 2024 and 2023, $6,981 have been amortized in the consolidated statements of operations and, for the six months ended December 31, 2024 and 2023, $13,962 and $18,938, respectively, have been amortized in the consolidated statements of operations. At December 31, 2024, $6,171 of deferred compensation included in the balance sheets is expected to be expensed within six months. 

 

The following is a schedule summarizing restricted stock awards for the periods indicated:

 

   December 31, 2024 
   Three Months Ended   Six Months Ended 
   Number of
Shares		   Weighted
Average
Grant Date
Fair Value
per Price		   Number of
Shares		   Weighted
Average
Grant Date
Fair Value
per Price		 
Beginning balance   6,923   $1.90    10,597   $1.90 
Issued   
-
    
-
    
-
    
-
 
Vested   (3,674)   1.90    (7,348)   1.90 
Forfeited   
-
    
-
    
-
    
-
 
Ending balance   3,249   $1.90    3,249   $1.90 

 

   December 31, 2023 
   Three Months Ended   Six Months Ended 
   Number of
Shares		   Weighted
Average
Grant Date
Fair Value
per Price		   Number of
Shares		   Weighted
Average
Grant Date
Fair Value
per Price		 
Beginning balance   21,619   $1.90    75,293   $1.97 
Issued   
-
    
-
    
-
    
-
 
Vested   (3,675)   1.90    (57,349)   1.99 
Forfeited   
-
    
-
    
-
    
-
 
Ending balance   17,944   $1.90    17,944   $1.90 

 

Stock Options 

 

During the three months ended September 30, 2023, the Company issued 6,500 options to purchase common stock to consultants. The options expire in 10 years and have an exercise prices that range from $2.90 to $3.90 with immediate vesting.

 

During the three months ended December 31, 2023, the Company issued 7,000 options to purchase common stock to a consultant. The options expire in 10 years and have an exercise price that ranges from $2.50 to $3.43 with immediate vesting.

 

During the three months ended March 31, 2024, the Company issued 6,500 options to purchase common stock to consultants. The options expire in 10 years and have an exercise prices that range from $2.99 to $3.50 with immediate vesting. During the three months ended March 31, 2024, the Company issued 100,821 options to purchase common stock to the board of directors. The options expire in 10 years and vest in nine months with an exercise price of $2.99.

During the three months ended September 30, 2024, the Company issued 12,000 options to purchase common stock to a consultant. The options expire in 10 years and have vest equally in twelve months with an exercise price of $3.13.

 

During the three months ended December 31, 2024, the Company issued 54,000 options to purchase common stock to consultants. The options expire in 10 years and have an exercise prices that range from $2.97 to $3.51 with vesting periods from six months to two years.

 

The Company estimates the fair value of each option award using the Black-Scholes option-pricing model. The Company used the following assumptions for to estimate the fair value of stock options for the period presented:

 

   Six Months Ended
December 31,		 
   2024   2023 
Weighted-average fair value  $1.89   $2.48 
Expected volatility   113.9% - 122.4%   104.9% - 106.6%
Expected term   1.0 years - 5.3 years    5.0 years - 6.2 years 
Dividend yield   0.00%   0.00%
Risk-free interest rate   3.87% - 4.31%   3.94% - 4.92%

 

For the three months ended December 31, 2024 and 2023, stock-based compensation expenses for options granted were $149,103 and $135,919, respectively. For the six months ended December 31, 2024 and 2023, stock-based compensation expenses for options granted were $316,194 and $376,496, respectively Unrecognized stock-based compensation expense was $620,570 and the average expected recognition period was 1.0 years as of December 31, 2024.

 

The following is a schedule summarizing stock option activities for the periods presented:

 

Three Months Ended

 

   Number of
Options		   Weighted
Average
Exercise Price		   Aggregate
Intrinsic
Value (1)		 
Outstanding at October 1, 2024   1,056,487   $2.42   $794,863 
Granted   54,000    3.12      
Exercised   (155,666)   2.11      
Expired/forfeited   
-
    
-
      
Outstanding at December 31, 2024   954,821   $2.51   $4,908,085 
Exercisable at December 31, 2024   665,348   $2.44   $3,469,609 
                
Outstanding at October 1, 2023   995,500   $2.33   $965,500 
Granted   7,000    2.90      
Exercised   
-
    
-
      
Expired/forfeited   (41,375)   2.09      
Outstanding at December 31, 2023   961,125   $2.35   $566,485 
Exercisable at December 31, 2023   481,560   $2.20   $350,521 

 

(1)Represents the excess of the fair value on the last day of period (which was $7.65 and $2.90 as of December 31, 2024 and 2023, respectively) over the exercise price, multiplied by the number of options.

Six Months Ended

 

   Number of
Options		   Weighted
Average
Exercise Price		   Aggregate
Intrinsic
Value (1)		 
Outstanding at July 1, 2024   1,068,000   $2.41   $1,257,520 
Granted   66,000    3.12      
Exercised   (155,666)   2.11      
Expired/forfeited   (23,959)   2.39      
Outstanding at December 31, 2024   954,821   $2.51   $4,908,085 
Exercisable at December 31, 2024   665,348   $2.44   $3,469,609 
                
Outstanding at July 1, 2023   1,034,000   $2.31   $639,775 
Granted   13,500    3.11      
Exercised   
-
    
-
      
Expired/forfeited   (86,375)   2.04      
Outstanding at December 31, 2023   961,125   $2.35   $566,485 
Exercisable at December 31, 2023   481,560   $2.20   $350,521 

 

(1)Represents the excess of the fair value on the last day of period (which was $7.65 and $2.90 as of December 31, 2024 and 2023, respectively) over the exercise price, multiplied by the number of options.

Note 4 – Stock-Based Compensation

 

Restricted Stock Awards

 

In June 2021, the Company sold 723,008 shares of common stock to certain individuals in exchange for future management advisory services, for discounted prices price ranging from $.0104 to $.0195 per share. The shares are subject to restrictions that allow for repurchase of the shares by the Company due to a termination of the service agreement or other certain provisions. This repurchase right declines on a pro-rata basis over vesting periods (corresponding to the service period) ranging from 2-4 years. Related to these issuances, the Company has recorded deferred compensation of $1,372,435 for the value of the shares in excess of the purchase price paid by the advisors. The deferred compensation was expensed as consulting expense in the consolidated statements of operation over the service period.

 

In March 2022, the Company signed an agreement to issue 150,000 shares of common stock valued at $300,000 to a consultant for providing consulting services to the Company for eighteen months. Related to these issuances, the Company has recorded deferred compensation of $300,000 which was expensed as consulting expense in the consolidated statements of operation over the eighteen months.

 

For the years ended June 30, 2024 and 2023, $32,900 and $920,464, respectively, have been amortized in the consolidated statements of operations. At June 30, 2024, $20,133 of deferred compensation included in the balance sheets is expected to be expensed within 12 months. 

The following is a schedule summarizing restricted stock awards for the periods indicated:

 

   Number of
Shares		   Weighted
Average
 Grant Date
 Fair Value
 Per Share		 
Outstanding at July 1, 2022   344,426   $1.90 
Granted   150,000    2.00 
Vested   (419,133)   1.92 
Forfeited   
-
    
-
 
Outstanding at June 30, 2023   75,293   $1.97 
Granted   
-
    
-
 
Vested   (64,696)   1.98 
Forfeited   
-
    
-
 
Outstanding at June 30, 2024   10,597   $1.90 

 

Stock Options 

 

During the three months ended December 31, 2022, the Company issued 161,000 options to purchase common stock to employees. The options have an exercise price of $2.00 or $2.10 and expire in 10 years with various vesting schedules from nine months to 48 months, subject to the continued status as an employee to the Company through each vesting date.

 

During the three months ended June 30, 2023, the Company issued 163,000 options to purchase common stock to a consultant and employees. The options expire in 10 years and have an exercise price of $2.60 with immediate vesting or $3.00 with a vesting schedule of 48 months. Stock options granted to employees are subject to the continued status as an employee to the Company through each vesting date.

 

During the three months ended September 30, 2023, the Company issued 6,500 options to purchase common stock to consultants. The options expire in 10 years and have an exercise price that range from $2.90 to $3.90 with immediate vesting.

 

During the three months ended December 31, 2023, the Company issued 7,000 options to purchase common stock to a consultant. The options expire in 10 years and have an exercise price that ranges from $2.50 to $3.43 with immediate vesting.

 

During the three months ended March 31, 2024, the Company issued 6,500 options to purchase common stock to consultants. The options expire in 10 years and have an exercise price that range from $2.99 to $3.50 with immediate vesting. During the three months ended March 31, 2024, the Company issued 100,821 options to purchase common stock to board of directors. The options expire 10 year and vest in nine months with an exercise price of $2.99.

 

The Company estimates the fair value of each option award using the Black-Scholes option-pricing model. The Company used the following assumptions for to estimate the fair value of stock options for the period presented:

 

   Year Ended June 30, 
   2024   2023 
Weighted-average fair value  $2.52   $2.45 
Expected volatility   105% - 114%   100% - 134%
Expected term   5.0 years - 6.2 years    5.0 years - 7.0 years 
Dividend yield   0.00%   0.00%
Risk-free interest rate   3.94% - 4.92%   1.26% - 4.24%

 

For the years ended June 30, 2024 and 2023, stock-based compensation expenses for options granted were $732,167 and $448,444, respectively. Unrecognized stock-based compensation expense was $857,026 and average expected recognition period was 1.1 years as of June 30, 2024.

The following is a schedule summarizing stock option activities for the periods presented:

 

   Number of
Options		   Weighted
Average
Exercise Price		   Aggregate
Intrinsic
Value (1)		 
Outstanding at July 1, 2023   1,034,000   $2.31   $639,775 
Granted   120,821    3.01      
Exercised   
-
    
-
      
Expired/cancelled   (201,000)   2.08      
Outstanding at June 30, 2024   953,821   $2.45   $1,087,178 
Exercisable at June 30, 2024   550,116   $2.36   $673,901 

 

(1) Represents the excess of the fair value on the last day of period (which was $3.59 as of June 30, 2024) over the exercise price, multiplied by the number of options.

 

   Number of
Options		   Weighted
Average
Exercise Price		   Aggregate
Intrinsic
Value (1)		 
Outstanding at July 1, 2022   817,750   $2.00   $
-
 
Granted   471,250    2.68      
Exercised   
-
    
-
      
Expired/cancelled   (255,000)   2.00      
Outstanding at June 30, 2023   1,034,000   $2.31   $639,775 
Exercisable at June 30, 2023   360,060   $2.05   $309,248 

 

(1) Represents the excess of the fair value on the last day of period (which was $2.90 as of June 30, 2023) over the exercise price, multiplied by the number of options.