Stock-Based Compensation

9 Months Ended

Mar. 31, 2025

Stock-Based Compensation [Abstract]

Stock-Based Compensation

13. Stock-based compensation

The Company’s Amended and Restated 2022 Stock Incentive Plan (“20 22 Plan”) and the vesting terms of certain stock-based

awards granted are described in Note 17 to the Company’s audited consolidated financial statements included in its Annual Report on

Form 10-K for the year ended June 30, 2024.

Stock option and restricted stock activity 

Options

The following table summarizes stock option activity for the nine months ended March 31, 2025 and 2024:

Number of

shares

Weighted

average

exercise

price

($)

Weighted

average

remaining

contractual

term

(in years)

Aggregate

intrinsic

value

($'000)

Weighted

average

grant date

fair value

($)

Outstanding - June 30, 2024

4,918,248

8.70

4.51

889

1.77

Granted - December 2024

350,000

6.00

2.00

433

1.24

Granted - December 2024

250,000

8.00

2.00

177

0.71

Granted - January 2025

100,000

8.00

2.00

71

0.71

Granted - January 2025

150,000

11.00

2.00

107

0.71

Granted - January 2025

150,000

14.00

2.00

123

0.82

Exercised

(36,345)

3.02

-

70

-

Forfeited

(13,333)

11.23

-

-

8.83

Outstanding - March 31, 2025

5,868,570

8.71

3.79

886

1.20

Outstanding - June 30, 2023

673,274

4.37

5.14

239

1.67

Granted – December 2023

500,000

3.50

5.17

880

1.76

Exercised

(23,217)

1.20

-

14

-

Forfeited

(195,739)

3.93

-

-

1.39

Outstanding - March 31, 2024

954,318

4.03

5.24

45

1.78

The Company awarded

400,000

 stock options to an executive officer during the three months ended March 31, 2025 with strike

prices ranging from $

8

 to $

14

, and an aggregate of

1,000,000

 stock options during the nine months ended March 31, 2025 with strike

prices ranging from $

6

 to $

14

. These stock options, together with the

600,000

 that were awarded in December 2024, will vest on

December 31, 2026, and vesting is subject to the executive officers continued employment with the Company through to the vesting

date. The

1,000,000

 stock options expire on January 31, 2029. The Company awarded

500,000

 stock options to Ali Mazanderani, the

Company’s Executive Chairman, during the nine months ended March 31, 2024. These options vested in December 2024, but may

only be sold during a period commencing from January 31, 2028 to January 31, 2029. In March 2025, the Company’s Remuneration

Committee amended the exercise terms of the

500,000

 stock options from being exercisable during a period commencing from January

31, 2028 to January 31, 2029, to being exercisable from March 2025, however, any stock options exercised may only be sold during

a period commencing from January 31, 2028 to January 31, 2029.

During the three and nine months ended March 31, 2025, the Company received $

0.06

 million and $

0.1

 million from the exercise

of

19,331

 and

36,345

 stock options, respectively. During the three and nine months ended March 31, 2024, the Company received

$

0.05

 million and $

0.07

 million from the exercise of

15,832

 and

23,217

 stock options, respectively. Employees forfeited an aggregate

of

13,333

 stock options during each of the three and nine months ended March 31, 2025. Employees and a non-employee director

forfeited an aggregate of

8,893

 and

195,739

 stock options during the three and nine months ended March 31, 2024.

The fair value of each option is estimated on the date of grant using the Cox Ross Rubinstein binomial model that uses the

assumptions noted in the following table. The estimated expected volatility is calculated based on the Company’s

730

,

1095

 and

1460

-

day volatility (as applicable). The estimated expected life of the option was determined based on the historical behavior of employees

who were granted options with similar terms. 

13. Stock-based compensation (continued)

Stock option and restricted stock activity (continued)

Options (continued)

The table below presents the range of assumptions used to value stock options granted during the nine months ended March 31,

2025 and 2024:

Nine months ended

March 31,

2025

2024

Expected volatility 

43

%

56

%

Expected dividends 

0

%

0

%

Expected life (in years) 

2

5

Risk-free rate 

4.3

%

2.1

%

The following table presents stock options vested and expected to vest as of March 31, 2025:

Number of

shares

Weighted

average

exercise

price

($)

Weighted

average

remaining

contractual

term

(in years)

Aggregate

intrinsic

value

($’000)

Vested and expecting to vest - March 31, 2025

5,868,570

8.71

3.79

886

These options have an exercise price range of $

3.01

 to $

14.00

.

The following table presents stock options that are exercisable as of March 31, 2025:

Number of

shares

Weighted

average

exercise

price

($)

Weighted

average

remaining

contractual

term

(in years)

Aggregate

intrinsic

value

($’000)

Exercisable - March 31, 2025

387,901

4.58

4.91

285

During the three months ended March 31, 2025 and 2024, respectively,

26,982

 and

28,569

 stock options became exercisable.

During the nine months ended March 31, 2025 and 2024, respectively,

26,982

 and

116,063

 stock options became exercisable. The

Company issues new shares to satisfy stock option exercises.

13. Stock-based compensation (continued)

Stock option and restricted stock activity (continued)

Restricted stock

The following table summarizes restricted stock activity for the nine months ended March 31, 2025 and 2024:

Number of

shares of

restricted stock

Weighted

average grant

date fair value

($’000)

Non-vested – June 30, 2024

2,084,946

8,736

Total granted

1,396,110

5,204

Granted – August 2024

32,800

154

Granted – October 2024

100,000

490

Granted – November 2024, with performance conditions

1,198,310

4,206

Granted – January 2025

65,000

354

Total vested

(556,641)

2,865

Vested – July 2024

(78,801)

394

Vested – November 2024

(213,687)

1,134

Vested – November 2024, with performance conditions

(103,638)

524

Vested – December 2024

(77,306)

417

Vested – February 2025

(13,922)

68

Vested – March 2025

(69,287)

328

Forfeitures

(108,243)

537

Non-vested – March 31, 2025

2,816,172

10,955

Non-vested – June 30, 2023

2,614,419

11,869

Total Granted

934,521

3,622

Granted – October 2023

333,080

1,456

Granted – October 2023, with performance awards

310,916

955

Granted – October 2023

225,000

983

Granted – January 2024

56,330

197

Granted – February 2024

9,195

31

Total vested

(339,803)

1,274

Vested – July 2023

(78,800)

302

Vested – November 2023

(109,833)

429

Vested – December 2023

(67,073)

234

Vested – February 2023

(14,811)

53

Vested – March 2023

(69,286)

256

Forfeitures

(77,668)

278

Non-vested – March 31, 2024

3,131,469

13,434

Grants

In August 2024, October 2024 and January 2025, respectively, the Company granted

32,800

,

100,000

 and

65,000

 shares of

restricted stock to employees which have time -based vesting conditions and which are subject to the employees continued employment

with the Company through the applicable vesting dates.

In November 2024, the Company awarded

1,198,310

 shares of restricted stock to a group comprising employees and three

executive officers and which are subject to a time-based vesting condition and a market condition and vest in full only on the date, if

any, that the following conditions are satisfied: (1) a compounded annual

15

% appreciation in the Company’s stock price off a base

price of $

5.00

 over the measurement period commencing on September 30, 2024 through September 30, 2027, and (2) the recipient is

employed by the Company on a full-time basis through to September 30, 2027. If either of these conditions is not satisfied, then none

of the shares of restricted stock will vest and they will be forfeited. The Company’s closing price on September 30, 2024, was $

5.00

.

The appreciation levels (times and price) and annual target percentages to earn the awards as of each period ended are as follows:

●

Prior to the first anniversary of the grant date:

0

%;

●

Fiscal 2026, the Company’s 30-day volume weighted-average stock price (“VWAP”) before September 30, 2025 is

approximately

1.15

 times higher (i.e. $

5.75

 or higher) than $

5.00

:

33

%;

●

Fiscal 2027, the Company’s VWAP before September 30, 2026 is

1.32

 times higher (i.e. $

6.61

 or higher) than $

5.00

:

67

%;

●

Fiscal 2028, the Company’s VWAP before September 30, 2027 is

1.52

 times higher (i.e. $

7.60

) than $

5.00

:

100

%.

13. Stock-based compensation (continued)

Stock option and restricted stock activity (continued)

Restricted stock (continued)

Grants (continued)

The fair value of these shares of restricted stock was calculated using a Monte Carlo simulation. In scenarios where the shares

do not vest, the final vested value at maturity is zero. In scenarios where vesting occurs, the final vested value on maturity is the share

price on vesting date. In its calculation of the fair value of the restricted stock, the Company used an equally weighted volatility of

47.7

% for the closing price (of $

5.50

), a discounting based on U.S. dollar overnight indexed swap rates for the grant date, and no

future dividends. The equally weighted volatility was extracted from the time series for closing prices as the standard deviation of log

prices for the three years preceding the grant date.

In October 2023, the Company awarded

333,080

 shares of restricted stock with time-based vesting conditions to approximately

150

 employees, which are subject to the employees continued employment with the Company through the applicable vesting dates.

The Company also awarded

225,000

 shares of restricted stock to an executive officer in October 2023, which vest on June 30, 2025,

except if the executive officer is terminated for cause, in which case the award will be forfeited. In January 2024 and February 2024,

the Company awarded

56,330

 and

9,195

, respectively, shares of restricted stock with time-based vesting conditions to employees.

In October 2023, the Company awarded

310,916

 shares of restricted stock to three of its executive officers which are subject to

a time-based vesting condition and a market condition and vest in full only on the date, if any, that the following conditions are

satisfied: (1) a compounded annual

10

% appreciation in the Company’s stock price off a base price of $

4.00

 over the measurement

period commencing on September 30, 2023 through November 17, 2026, and (2) the recipient is employed by the Company on a full-

time basis when the condition in (1) is met. If either of these conditions is not satisfied, then none of the shares of restricted stock will

vest and they will be forfeited. The Company’s closing price on September 30, 2023, was $

3.90

.

The appreciation levels (times and price) and vesting percentages as of each period ended are as follows:

●

Prior to the first anniversary of the grant date:

0

%;

●

Fiscal 2025, the Company’s 30-day volume weighted-average stock price (“VWAP”) before November 17, 2024 is

approximately

1.10

 times higher (i.e. $

4.40

 or higher) than $

4.00

:

33

%;

●

Fiscal 2026, the Company’s VWAP before November 17, 2025 is

1.21

 times higher (i.e. $

4.84

 or higher) than $

4.00

:

67

%;

●

Fiscal 2027, the Company’s VWAP before November 1, 2026 is

1.33

 times higher (i.e. $

5.32

) than $

4.00

:

100

%.

The fair value of these shares of restricted stock was calculated using a Monte Carlo simulation. In scenarios where the shares

do not vest, the final vested value at maturity is zero. In scenarios where vesting occurs, the final vested value on maturity is the share

price on vesting date. In its calculation of the fair value of the restricted stock, the Company used an equally weighted volatility of

48.3

% for the closing price (of $

4.37

), a discounting based on U.S. dollar overnight indexed swap rates for the grant date, and no

future dividends. The equally weighted volatility was extracted from the time series for closing prices as the standard deviation of log

prices for the three years preceding the grant date.

The Company has agreed to grant an advisor

5,500

 shares per month in lieu of cash for services provided to the Company. The

Company and the advisor have agreed that the Company will issue the shares to the advisor, in arrears, on a quarterly basis. During

the three and nine months ended March 31, 2025, the Company recorded a stock-based compensation charge of $

0.1

 million and $

0.3

million, respectively, and included the issuance of

16,500

 and

49,500

 shares of common stock in its issued and outstanding share

count.

Vesting

In July 2024,

78,801

 shares of restricted stock granted to Mr. Meyer, our former Group CEO, vested. In November 2024,

103,638

shares of restricted stock with performance conditions (share price targets) vested following the achievement of the agreed performance

condition. In November, December 2024, February 2025 and March 2025, an aggregate of

374,202

 shares of restricted stock granted

to employees vested. Certain employees elected for

137,809

 shares to be withheld to satisfy the withholding tax liability on the vesting

of their shares. These

137,809

 shares have been included in the Company’s treasury shares.

In July 2023,

78,800

 shares of restricted stock granted to Mr. Meyer vested. In November, December 2023, February 2024 and

March 2024, an aggregate of

261,003

 shares of restricted stock granted to employees vested. Certain employees elected for

53,486

shares to be withheld to satisfy the withholding tax liability on the vesting of their shares. These

53,486

 shares have been included in

the Company’s treasury shares.

13. Stock-based compensation (continued)

Stock option and restricted stock activity (continued)

Restricted stock (continued)

Forfeitures

During the three and nine months ended March 31, 2025, respectively, employees forfeited

67,922

 and

108,243

 shares of

restricted stock following their termination of employment with the Company or the failure to achieved agreed performance conditions

(

29,121

 shares were forfeited following the failure to achieved agreed share performance targets). During the three and nine months

ended March 31, 2024, respectively, employees forfeited

55,539

 and

77,668

 shares of restricted stock following their termination of

employment with the Company.

Stock-based compensation charge and unrecognized compensation cost

The Company recorded a stock-based compensation charge, net, excluding charges related to the post-combination compensation

charges discussed in Note 2, during the three months ended March 31, 2025 and 2024, of $

2.5

 million and $

2.1

 million, respectively,

which comprised:

Total charge 

Allocated to cost

of goods sold, IT

processing,

servicing and

support

Allocated to

selling, general

and

administration

Three months ended March 31, 2025

Stock-based compensation charge 

$

2,531

$

-

$

2,531

Reversal of stock compensation charge related to stock

options and restricted stock forfeited

(34)

-

(34)

Total - three months ended March 31, 2025

$

2,497

$

-

$

2,497

Three months ended March 31, 2024

Stock-based compensation charge 

$

2,202

$

-

$

2,202

Reversal of stock compensation charge related to stock

options and restricted stock forfeited

(112)

-

(112)

Total - three months ended March 31, 2024

$

2,090

$

-

$

2,090

The Company recorded a stock-based compensation charge, net, excluding charges related to the post-combination compensation

charges discussed in Note 2, during the nine months ended March 31, 2025 and 2024, of $

7.5

 million and $

5.7

 million respectively,

which comprised:

a

Total charge 

Allocated to cost

of goods sold, IT

processing,

servicing and

support

Allocated to

selling, general

and

administration

Nine months ended March 31, 2025

Stock-based compensation charge 

$

7,563

$

-

$

7,563

Reversal of stock compensation charge related to stock

options and restricted stock forfeited

(45)

-

(45)

Total - nine months ended March 31, 2025

$

7,518

$

-

$

7,518

Nine months ended March 31, 2024

Stock-based compensation charge 

$

5,782

$

-

$

5,782

Reversal of stock compensation charge related to stock

options and restricted stock forfeited

(129)

-

(129)

Total - nine months ended March 31, 2024

$

5,653

$

-

$

5,653

13. Stock-based compensation (continued)

The stock-based compensation charges have been allocated to selling, general and administration based on the allocation of the

cash compensation paid to the relevant employees. Stock-based compensation charge of $

1.0

 million related to the post-combination

compensation charges discussed in Note 2 are included in the caption transaction costs related to Adumo and Recharger acquisitions

and certain compensation costs included on the unaudited condensed consolidated statement of operations for the three and nine

months ended March 31, 2025. These stock-based charges are classified as cash settled awards and are in in other payables as of March

31, 2025, refer to Note 10. 

As of March 31, 2025, the total unrecognized compensation cost related to stock options was $

3.1

 million, which the Company

expects to recognize over

one and half years

. As of March 31, 2025, the total unrecognized compensation cost related to restricted

stock awards was $

5.8

 million, which the Company expects to recognize over

two years

.

During the three months ended March 31, 2025 and 2024, the Company recorded a deferred tax benefit of $

0.3

 million and $

0.2

million, respectively, related to the stock-based compensation charge recognized related to employees of Lesaka. During the nine

months ended March 31, 2025 and 2024, the Company recorded a deferred tax benefit of $

0.8

 million and $

0.5

 million, respectively,

related to the stock-based compensation charge recognized related to employees of Lesaka. During these periods the Company

recorded a valuation allowance related to the full deferred tax benefit recognized because it does not believe that the stock-based

compensation deduction would be utilized as it does not anticipate generating sufficient taxable income in the United States. The

Company deducts the difference between the market value on the date of exercise by the option recipient and the exercise price from

income subject to taxation in the United States.