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Stock-Based Compensation

9 Months Ended

Mar. 31, 2021

Share-based Payment Arrangement [Abstract]

Note 8. Share-Based Compensation

The Company’s share-based compensation plans are described in Note 8 of the Company’s Annual Report on Form 10-K for fiscal 2020. Share-based compensation expense was approximately $756,000 and $677,000 for the nine months ended March 31, 2021 and 2020, respectively. This expense is included in selling, general and administrative expense in the Condensed Statements of Operations. As of March 31, 2021, approximately $921,000 of total unrecognized compensation expense related to non- vested equity awards was expected to be recognized over a weighted-average period of approximately 0.8 years.

Stock Options

Stock option transactions during the nine months ended March 31, 2021 are summarized as follows:

	Number of Shares			Weighted Average Exercise Price per Share
Outstanding at June 30, 2020		590,780		$	4.34
Granted		61,017		$	14.14
Exercised		(71,150	)	$	5.09
Cancelled or Forfeited		(109,198	)	$	6.24
Outstanding at March 31, 2021		471,449		$	5.05

The following assumptions were used to estimate the fair value of stock options granted:

	Nine Months Ended March 31, 2021		Fiscal Year Ended June 30, 2020
Risk-free interest rate		0.31% - 0.59%		1.85	%
Expected term (years)		6.0		6.0
Expected volatility		283.05% - 335.33%		190.1	%

The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. At March 31, 2021, the weighted average remaining contractual term for all outstanding stock options was 6.1 years and their aggregate intrinsic value was $2,771,858. Outstanding at March 31, 2021 were 471,449 stock options issued to employees, of which 334,438 were vested and exercisable and had an aggregate intrinsic value of $2,326,959.

Restricted Stock

During the nine months ended March 31, 2021, the Company issued restricted stock awards to employees totaling 30,756 shares of common stock, with a vesting term of two to three years and a weighted average fair value of $12.93 per share and to directors totaling 18,000 shares of common stock, with a vesting term of six months and a weighted average fair value of $9.94 per share. There were 71,255 shares of unvested restricted stock with a weighted average fair value of $10.80 per share as of March 31, 2021.