SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2023

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]

SHAREHOLDERS' EQUITY

11. SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Repurchases of Common Stock

Pursuant to authority granted by the Company’s Board of Directors on April 29, 2022, the Company can repurchase up to approximately $5.00 million in shares outstanding of the Company’s common stock over the three-year period ending April 29, 2025. Pursuant to the terms of the repurchase authorization, the common stock share repurchases are generally at the discretion of the Company’s management. As the Company repurchases its common shares, which have no par value, the Company reports such shares held as treasury stock in the accompanying condensed consolidated balance sheets with the purchase price recorded within treasury stock.

During the six-month period ended December 31, 2023 the Company repurchased no shares of its common stock. During the six-month period ended December 31, 2022, the Company repurchased 358,116 shares of the Company’s common stock for an aggregate price of $451,815 pursuant to the repurchase authorization.

Dividends

The Company has paid no cash dividends during the current fiscal year through December 31, 2023.

STOCK-BASED COMPENSATION

Stock-Based Compensation

The following table summarizes the components of the Company’s stock-based compensation included in net income for the periods presented:

	Three Months Ended December 31,				Six Months Ended December 31,
	2023		2022		2023		2022
Employee stock options	$	67,174	$	49,704	$	118,618	$	122,202
Restricted stock awards		-		28,789		-		52,523
Totals	$	67,174	$	78,493	$	118,618	$	174,725

No stock-based compensation was capitalized as a cost of inventory during the three and six months ended December 31, 2023 or 2022.

Stock Options –The following is a summary of the stock option activity for the six months ended December 31, 2023:

	Shares			Weighted Average Exercise Price
Outstanding, June 30, 2023		1,817,665		$	1.24
Granted		1,058,612		$	0.35
Forfeited		(25,166	)	$	1.88
Expired		(99,334	)	$	2.05
Outstanding, December 31, 2023		2,751,777		$	0.86

The weighted average grant date fair value of stock options granted during the six-months ended December 31, 2023 and 2022 was approximately $0.21 and $0.59, respectively. The total fair value of stock options that vested during the six months ended December 31, 2023 and 2022 was approximately $188,000 and $176,000, respectively.

The following table summarizes information about stock options outstanding at December 31, 2023:

Options Outstanding						Options Exercisable						Options Vested or Expected to Vest
Balance as of 12/31/2023		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 12/31/2023		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Balance as of 12/31/2023		Weighted Average Remaining Contractual Life (Years)		Weighted Average Exercise Price
	2,751,777		7.42	$	0.86		1,734,641		6.06	$	1.06		2,683,732		7.36	$	0.87

As of December 31, 2023, the unrecognized stock-based compensation expense related to unvested stock options was approximately $248,000, which is expected to be recognized over a weighted average period of approximately 15 months.

The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at December 31, 2023 and 2022 was approximately $59,000 and $57,000, respectively. These amounts are before applicable income taxes and represents the closing market price of the Company’s common stock at December 31, 2023 less the grant price, multiplied by the number of stock options that had a grant price that is less than the closing market price. These values represent the amount that would have been received by the optionees had these stock options been exercised on that date. There were no stock options exercised during the six-month-periods ended December 31, 2023 and 2022.

Restricted Stock

During the six-month period ended December 31, 2023 there were no restricted stock shares awarded to plan participants. The unvested restricted shares as of December 31, 2022, totaled 178,750 with a weighted average grant date fair value of $0.97, were all performance-based restricted shares and were scheduled to vest in July 2023, subject to achievement of the underlying performance goals. None of these shares vested and during the three-month period ended December 31, 2023, these shares were cancelled as the underlying performance goals were not met .