Share Based Compensation

3 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

10. Share Based Compensation

Share based compensation expense is included in general and administrative expense and consisted of the following for the periods presented.


		Three months ended September 30,
		2023		2022
	(in thousands)
Share based compensation expense — service based
Employee share option plan		$	96	$	961
2022 Equity Compensation Plan — Options			133		175
2022 Equity Compensation Plan — PSU's			48		—
2022 Equity Compensation Plan — RSU and DSU's			322		164
Total share based compensation expense		$	599	$	1,300

Stock Options

All options outstanding prior to the three-month period ended September 30, 2022 were granted under the predecessor parent company's employee share option plan. New option grants are made under the 2022 Equity Compensation Plan and vest ratably over the vesting period which is generally three years or less. The tables below reflect all options granted under both plans. The significant assumptions used to estimate the fair value of stock option awards granted under the plans during the three months ended September 30, 2023 and 2022, using the Black-Scholes option valuation model are as follows.


	Three months ended September 30,
	2023	2022
Exercise price	$7.73	$25.62
Share price	$2.46	$18.03
Volatility	99%	79%
Expected term in years	9.6	5.0
Risk-free interest rate	4.3%	2.91%
Dividend rate	Nil	Nil

The following table summarizes stock option activity for each of the periods presented.


	Three months ended September 30,
	2023					2022
	Number of Options			Weighted Average Exercise Price		Number of Options			Weighted Average Exercise Price
	(In thousands, except per share data)
Outstanding at beginning of the period		4,187		$	10.91		4,874		$	9.67
Granted		300			7.73		400			25.62
Exercised		—			—		(50	)		5.12
Expired/forfeited		(278	)		25.49		—			—
Outstanding at end of the period		4,209			9.71		5,224			10.94

Vested at the end of the period		3,356			9.83		3,664			8.02
Unvested at the end of the period		853		$	9.25		1,560		$	7.15

The weighted average remaining life of vested options at September 30, 2023 and 2022 was 1.2 years and 1.4 years, respectively.

As of September 30, 2023, there was $2.4 million of unrecognized compensation cost related to 853 thousand unvested stock options. This cost is expected to be recognized over a weighted-average remaining period of approximately 1.7 years.

The following table summarizes the activity for unvested options for each of the periods presented.


	Three months ended September 30,
	2023					2022
	Number of Options			Weighted Average Grant Date Fair Value per share		Number of Options			Weighted Average Grant Date Fair Value per share
	(In thousands, except per share data)
Unvested at beginning of the period		838		$	6.42		1,507		$	6.05
Granted		300			2.08		400			10.52
Vested		(7	)		6.85		(347	)		5.96
Expired/forfeited		(278	)		10.48		—			—
Unvested at end of the period		853		$	3.57		1,560		$	7.15

As of September 30, 2023, all outstanding stock options and vested stock options had no intrinsic value as the exercise prices of the respective options exceeded the Company's stock price on September 30, 2023. The intrinsic value of stock options exercised during the three months ended September 30, 2022 was $0.8 million. There were no options exercised during the three months ended September 30, 2023.

Restricted Share Units, Director Share Units and Performance Share Units

The following table summarizes restricted share ("RSU"), director restricted share ("DSU") and performance share ("PSU") activity under the 2022 Equity Compensation Plan for each of the periods presented.


	Serviced-Based Shares			Weighted Average Grant Date Fair Value per Share		Performance- Based Shares				Weighted Average Grant Date Fair Value per Unit		Total Shares
	(In thousands, except per share data)
Non-vested shares/units outstanding at June 30, 2023		209.8		$	6.78		139.1			$	7.20		348.9
Granted		186.6			2.46		121.6		(1)		2.46		308.2
Vested		(77.1	)		6.31		—				—		(77.1	)
Forfeited		(4.5	)		14.49		(4.5	)			14.49		(9.0	)
Non-vested shares/units outstanding at September 30, 2023		314.8		$	4.23		256.2			$	4.82		571.0

	Serviced-Based Shares			Weighted Average Grant Date Fair Value per Share		Performance- Based Shares				Weighted Average Grant Date Fair Value per Unit		Total Shares
	(In thousands, except per share data)
Non-vested shares/units outstanding at June 30, 2022		48.8		$	18.03		19.2			$	12.19		68.0
Granted		101.3			14.67		63.5		(2)		14.79		164.8
Non-vested shares/units outstanding at September 30, 2022		150.1		$	15.76		82.7			$	14.23		232.8

(1) During the quarter ended September 30, 2023, approximately 121.6 thousand performance share units were granted, which based on the achievement of certain financial and operational targets, could vest within a range of 0% to 100%. The targets are 1) construction of the large-scale commercial facility commencing prior to September 1, 2026; 2) the budget for the large-scale commercial facility remaining within a range of $342-418 million; and 3) an approved final investment decision in the large-scale commercial facility at a modeled internal rate of return of 20%. The determination of the percentage of shares that ultimately vest will be made at the three-year anniversary of the grant date based upon achievement of the performance targets over the period.

(2) During the quarter ended September 30, 2022, approximately 63.5 thousand performance share units were granted, which based on the achievement of certain operational targets, could vest within a range of 0% to 100%. The targets are 1) commissioning and operation of the small-scale facility; 2) obtaining formation flow, head grade and impurity profile data from the small-scale facility; and 3) generating product data to ensure process design for detailed engineering. The determination of the percentage of shares that ultimately vest will be made at the three-year anniversary of the grant date based upon achievement of the performance targets over the period.