XML 57 R26.htm IDEA: XBRL DOCUMENT v3.25.2
SHAREHOLDERS’ EQUITY
 12 Months Ended
Jun. 30, 2025
Equity [Abstract]  
SHAREHOLDERS’ EQUITY

NOTE 14. SHAREHOLDERS’ EQUITY

 

Common Stock

 

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.01 per share, of which 7,323,261 and 3,456,000 were issued and outstanding as of June 30, 2025 and 2024, respectively. 

 

Preferred Stock

 

The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.01 per share, of which 4,012,276 shares have been designated Series C Convertible Preferred Stock 5,728,723 shares have been designated Series E Convertible Preferred Stock. There were no shares of preferred stock issued or outstanding as of June 30, 2025 and 2024.

 

Warrants

 

As of June 30, 2025, there were warrants outstanding to purchase shares amounting to 5,508,496 of common stock, held by certain shareholders, with exercise prices ranging from $0.01 to $4,488 per share and a weighted-average exercise price of $16.07 per share. Each warrant initially represented the right to purchase one share of the Company’s common stock and was subject to adjustment upon the occurrence of specified events including reverse stock splits.

 

The Company raised approximately $7,939 and issued 799,447 shares of common stock in connection with the exercise of outstanding warrants for the years ended June 30, 2025, respectively and the Company raised approximately $6,551,000 through the issuance of 655,086 shares of common stock upon the exercise of outstanding warrants the years ended June 30, 2024, respectively.

 

At The Market (ATM) Offering

 

As a result of the sale of shares of common stock by the Company pursuant to the previously disclosed ATM Agreement between the Company and Ladenburg, the Company has raised approximately $2,449,962 (net of commissions of approximately $75,774 paid to Ladenburg) as of August 12, 2025. Of this amount, the Company raised approximately $2,251,540 (net of commissions of approximately $69,637 paid to Ladenburg) through the sale and issuance of 1,434,659 shares of Company common stock pursuant to the ATM Agreement during the period between September 18, 2024, through to June 30, 2025. During the three months ended June 30, 2025, the Company raised approximately $765,201 (net of commissions of approximately $23,666 paid to Ladenburg) through the sale and issuance of 514,296 shares of Company common stock pursuant to the ATM Agreement.

 

February Offering

 

On February 20, 2025, the Company entered into an underwriting agreement with Ladenburg, as representative (the February Representative) for the underwriters named in Schedule 1 thereto, relating to an underwritten public offering of 1,304,348 shares of the Company’s common stock. The public offering price for each share was $2.00 per share and the February Underwriters agreed to purchase 1,304,348 shares. The Company granted the February Underwriters a 45-day option to purchase an additional 195,652 shares of common stock at the public offering price of $2.00 per share, less the underwriting discounts and commissions. On February 20, 2025, the February Representative fully exercised the over-allotment option to purchase an additional 195,652 shares of common stock. All of the shares were sold by the Company. The February Offering closed on February 21, 2025. As a result of the overallotment option being exercised in full, the Company raised approximately $2,645,000 (net of underwriting discounts and commissions of approximately $355,000).

 

Advisory Agreement

 

On February 29, 2024, the Company entered into an Investor Relations and Corporate Development Advisory Agreement (the “ClearThink Agreement”) with ClearThink Capital LLC (“ClearThink”) pursuant to which ClearThink provides certain advisory and investor relations services to the Company. As consideration for such services, the Company agreed pay a fee consisting of: (a) an initial grant of 5,260 restricted shares of common stock (the “Initial Grant”) and (b) a monthly fee consisting of (i) a cash fee of a $5,000 per month, and (ii) a grant of restricted common stock with a value of $4,000 per month ($12,000 per three-month period (a “Quarter”)), with the number of shares of common stock in each such Quarterly issuance (each a “Quarterly Grant”) calculated on the first business day of each Quarter based on the closing price of the Company’s common stock on the last trading day of the immediately preceding Quarter. The ClearThink Agreement remains in effect until terminated by either party after three months from the effective date. For the year ended June 30, 2025, the Company recognized $48,000 of expense related to the ClearThink Agreement in the accompanying consolidated statements of operations and comprehensive income (loss). The Company issued 33,655 restricted stocks to ClearThink during the year ended June 30, 2025.

 

Stock-based payments under 2019 Stock Incentive Plan

 

On September 25, 2024, the Company granted its employees 99,500 shares of common stock as compensation. The Company recorded stock compensation expense of $190,045, based on a grant date fair value of $1.91 per share in the accompanying consolidated statement of operations and comprehensive income (loss). All shares of common stock granted vested immediately and there is no unrecognized share-based compensation expense as of June 30, 2025.