Restricted Shares & Restricted Share Units

6 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Restricted Shares & Restricted Share Units

10. Restricted Shares & Restricted Share Units

Under the 2021 Equity Incentive Plan (“the Plan”), the Company is authorized to issue up to 60,000,000 shares to employees and non-employees of the Company.

Several employees, officers, and directors have been granted service-based Restricted Shares unites (“RSUs”). The service based RSUs generally vest over a four-year period and are convertible into one share of common stock upon vesting.

AMERICAN BATTERY TECHNOLOGY COMPANY

Notes to the Condensed Consolidated Financial Statements

For the period ended December 31, 2022

(unaudited)

10. Restricted Shares & Restricted Share Units (Continued)

During the six months ended, the Company granted 27.2 million restricted share units (“RSUs”) with a grant date fair value of approximately $13.8 million, of which, 11.1 million RSUs were granted, with a grant date fair value of $5.7 million, to officers and directors of the Company.

The table below is inclusive of both restricted share awards (“RSAs”) and RSUs for the period ended December 31, 2022:

	Units			Weighted- Average Grant Date Fair Value per Unit
Unvested awards at June 30, 2022		350,000		$	0.82
Granted		27,183,616			0.51
Vested		(1,920,938	)		0.54
Forfeitures		-			-
Unvested awards at December 31, 2022		25,612,678			0.51

As units are granted, stock-based compensation equivalent to the fair market value on the date of grant is expensed over the requisite service period, as acceptable under ASC 718, “Stock-Based Compensation.” During the six-months ended December 31, 2022, the Company recognized stock-based compensation of approximately $3.5 million, including $1.6 million to officers and directors of the company.

The Company recognized stock-based compensation expense in the respective line items of the condensed consolidated statements of operations for the six months ended:

	December 31, 2022		December 31, 2021
General and administrative	$	2,460,584		-
Research and development		759,681		-
Exploration		303,040		-
	$	3,523,305		-

As of December 31, 2022, there was approximately $10.4 million of remaining expense related to outstanding awards, which are expected to be recognized over a remaining weighted-average period of 3.3 years.

Executive officers and selected other key employees are eligible to receive common share performance-based awards, as determined by the board of directors. The payouts, in the form of unrestricted common shares, vary based on the degree to which corporate operating objectives are met. These performance-based awards typically include a service-based requirement which is generally four-years. No granting of these awards occur until performance thresholds are achieved. For the three and six months ended December 31, 2022 and 2021, there have been no performance-based awards granted to officers or employees of the Company.

AMERICAN BATTERY TECHNOLOGY COMPANY

Notes to the Condensed Consolidated Financial Statements

For the period ended December 31, 2022

(unaudited)