Capital Stock

9 Months Ended

Mar. 31, 2022

Equity [Abstract]

Capital Stock

Note 5. Capital Stock

Authorized Capital

Authorized capital stock consists of 200,000,000 common shares with par value of $0.01 per common share (June 30, 2021 – 200,000,000 common shares with par value $0.01 per common share).

During the nine-month period ended March 31, 2022, the Company issued 7,766,388 shares at an approximate average price of $0.835 for gross proceeds of $6,486,141 through its at-the-market offering. Share issuance costs related to this were $271,661. The Company also issued 404,584 shares for payment of interest accrued and owing (Note 6) with a fair value of $324,055. In addition, the Company issued 266,000 shares of Common Stock under its equity compensation plans with a fair value of $170,240 (Note 4).

During the nine-month period ended March 31, 2021, the Company issued 2,625,644 shares at an approximate average price of $1.24 for gross proceeds of $3,266,548. Share issuance costs related to this were $130,922. The Company issued 166,792 shares at a value of $1.10 for services to complete a feasibility study at its Grassy Mountain Project (Note 4). The Company also issued 362,427 shares for payment of interest accrued and owing (Note 6) with a fair value of $398,777. The Company also issued 1,200,000 shares upon the conversion of 1,200 of the 2019 Senior Secured Convertible Notes (Note 6).

At March 31, 2022 there were 46,591,081 common shares issued and outstanding (June 30, 2021 – 38,154,109 common shares).

Stock Options, Restricted Stock Units and Stock Based Compensation

Paramount’s 2015 and 2016 Stock Incentive and Compensation Plans, which are stockholder-approved, permits the grant of stock options, restricted stock units and stock to its employees and directors for up to 3.5 million shares of common stock.

Stock Options

Stock Option awards are generally granted with an exercise price equal to the market price of Paramount’s stock at the date of grant and have contractual lives of 5 years. To better align the interests of its key executives, employees and directors with those of its shareholders a significant portion of those share option awards will vest contingent upon meeting certain stock price appreciation performance goals and other performance conditions. Option and share awards provide for accelerated vesting if there is a change in control (as defined in the employee share option plan).

During the three-month period ended March 31, 2022, the Company did not grant any stock options (2021 – nil).

During the three-month period ended March 31, 2022, share-based compensation expense relating to service condition options and performance condition options was $1,405 and $5,462, respectively (2021 - $45,021 and $35,843).

During the nine-month period ended March 31, 2022, the Company did not grant any stock options (2021 – 755,000).

During the nine-month period ended March 31, 2022 share-based compensation expenses relating to service condition options and performance condition options was $49,455 and $41,962 respectively (2021 - $245,022 and $114,731).

The fair value for these options was calculated using the Black-Scholes option valuations method. The weighted average assumptions used for the nine-month period ended March 31, 2022 and nine-month period ended March 31, 2021 were as follows:

	Nine-Month Period Ended March 31, 2022	Nine-Month Period Ended March 31, 2021
Weighted average risk-free interest rate	N/A		0.22	%
Weighted-average volatility	N/A		60	%
Expected dividends	N/A	$	0.00
Weighted average expected term (years)	N/A		5.00
Weighted average fair value	N/A	$	0.57

A summary of stock option activity under the Stock Incentive and Compensation Plans as of March 31, 2022 is presented below:

Options	Options			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at June 30, 2020		1,243,995		$	1.20		3.63	$	165,600
Granted		755,000			1.13		4.44		—
Exercised		—			—		—		—
Forfeited or expired		—			—		—		—
Outstanding at June 30, 2021		1,998,995		$	1.17		3.31	$	—
Granted		—			—		—	$	—
Exercised		—			—		—		—
Forfeited or expired		(190,000	)		—		—		—
Outstanding at March 31, 2022		1,808,995		$	1.14		2.67	$	—
Exercisable at March 31, 2022		1,151,662		$	1.15		2.72	$	—

A summary of the status of Paramount’s non-vested options as at March 31, 2022 is presented below:

Non-vested Options	Options			Weighted- Average Grant- Date Fair Value
Non-vested at June 30, 2020		943,992		$	0.51
Granted		755,000			0.56
Vested		(664,994	)		0.50
Forfeited or expired		—			—
Non-vested at June 30, 2021		1,033,998		$	0.55
Granted		—			—
Vested		(288,332	)		0.53
Forfeited or expired		(88,333	)		0.73
Non-vested at March 31, 2022		657,333		$	0.55

As of March 31, 2022, there was approximately $29,224 of unamortized stock-based compensation expense related to non-vested stock options outstanding. The expenses are expected to be recognized over a weighted-average period of 1.15 years. The total fair value of stock based compensation that vested related to outstanding stock options during the nine-month period ended March 31, 2022 and 2021, was $152,279 and $332,836, respectively.

Restricted Stock Units ("RSUs")

RSUs are awards for service and performance which upon vesting and settlement entitle the recipient to receive one common share of the Company's Common Stock for no additional consideration, for each RSU held.

During the three-month period ended March 31, 2022, the Company granted 701,000 RSUs (2021 - Nil)

During the three-month period ended March 31, 2022, share-based compensation expenses related to service condition RSUs and performance condition RSUs was $24,150 and $33,032, respectively (2021 - $nil and $nil)

A summary of RSUs activity is summarized as follows:

Restricted Share Unit Activity	Outstanding RSUs		Weighted average grant date fair value
Outstanding at June 30, 2020		—	$	—
Granted		—		—
Vested		—		—
Forfeited		—		—
Outstanding at June 30, 2021		—	$	—
Granted		701,000	$	0.65
Vested		—		—
Forfeited		—		—
Outstanding at March 31, 2022		701,000	$	0.65

As of March 31, 2022, there was approximately $399,589 of unamortized stock-based compensation expense related to outstanding RSUs. The expenses are expected to be recognized over the remaining weighted-average vesting periods of 1.08 years.