STOCKHOLDERS’ EQUITY

6 Months Ended

Dec. 31, 2024

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 9. STOCKHOLDERS’ EQUITY

Stock-based Compensation

During the six months ended December 31, 2024, the following activity occurred under the Company’s Equity Incentive Plan.

	Stock Options				Restricted Stock
	Number of Shares		Weighted Average Exercise Price		Number of Shares			Weighted Average Grant Date Fair Value
Balance at June 30, 2024		540,881	$	1.34		681,013		$	1.15
Granted		100,000	$	1.45		264,890		$	1.45
Released		-	$	-		(575,319	)	$	1.24
Outstanding at December 31, 2024		640,881	$	1.35		370,584		$	1.22
Exercisable at December 31, 2024		209,445	$	1.38

The fair value of the options granted during the six months ended December 31, 2024 was $1.34 per share which was estimated using the following assumptions:

	Three and Six Months Ended December 31, 2024
Expected volatility		137	%
Expected term		6.1 years
Risk-free interest rate		4.5	%
Expected dividend yield		0	%

As of December 31, 2024, there was $0.5 million of unrecognized compensation expense related to outstanding stock options that will be recognized over a remaining weighted average period of 2.6 years. The weighted average remaining contractual life of the outstanding stock options as of December 31, 2024 was 8.6 years. As of December 31, 2024, there was $0.4 million of unrecognized compensation expense related to outstanding restricted stock awards (RSAs) that will be recognized over a remaining weighted average period of 1.5 years. The total stock-based compensation expense recognized during the quarters ended December 31, 2024 and 2023 were $0.2 million and $0.1 million, respectively, and the six month periods ended December 31, 2024 and 2023 were $0.6 million and $0.2 million, respectively.

During the quarter ended December 31, 2024, the Company repurchased 173,220 common shares from an employee for approximately $0.3 million to cover employee payroll taxes in connection with restricted stock awards. No similar transactions occurred during the three or six months ended December 31, 2023.