Capital Stock

12 Months Ended

Jun. 30, 2022

Equity [Abstract]

Capital Stock

Note 6. Capital Stock

Authorized Capital

Authorized capital stock consists of 200,000,000 shares of Common Stock with par value of $0.01 per common share (2021- 200,000,000 shares of Common Stock with par value $0.01 per common share). An increase to authorized capital stock was approved by the Company’s stockholders during the year-ended June 30, 2021.

During the year-ended June 30, 2022, the Company issued 7,766,388 shares for net proceeds of $6,119,954 through its at-the-market offering. The Company also issued 404,584 shares for the payment of accrued interest (Note 7) with a fair value of $324,055.

During the year-ended June 30, 2021, the Company issued 3,209,133 shares for net proceeds of $3,722,554 through its at-the market offering. The Company also issued 362,427 shares for payment of interest accrued and owing (Note 5 and Note 7) 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 5 and Note 7).

In addition, during the year-ended June 30, 2021, the Company issued 166,792 shares at a value of $1.09 per share of Common Stock to Ausenco in exchange for services to complete a feasibility study at its Grassy Mountain Project (Note 5). It also issued 257,353 shares for the purchase of a mineral property with a fair value of $277,941 (Note 5 and 8).

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.

Total stock-based compensation for the years-ended June 30, 2022 and 2021 were $440,327 and $436,777, respectively. Total stock-based compensation for the year-ended June 30, 2022 consists of the aggregate of stock-based compensation recorded for outstanding stock-option awards ($97,681), restricted stock unit awards ($172,406) and restricted stock grant awards ($170,240).

Restricted Stock Grants

During the year-ended June 30, 2022, the Company granted and issued 266,000 shares of common under its equity compensation plan with a fair value of $170,240.

Stock Options and Stock Based Compensation

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, employee 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).

For the year-ended June 30, 2022 and 2021, the Company granted nil and 755,000 stock options to employees, directors and consultants, respectively.

For the year-ended June 30, 2022, share-based compensation expense relating to service conditions options and performance conditions options were $50,861 and $46,820, respectively (2021 - $286,096 and $150,681).

The fair value for these options was calculated using the Black-Scholes option valuations method. The weighted average assumptions used for the fiscal years ending June 30, 2022 and 2021 were as follows:

	2022	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 option activity under the Stock Incentive and Compensation Plan as of June 30, 2022 and 2021, and changes during the years ended June 30, 2022 and 2021 are 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	)		1.42		1.48		—
Outstanding at June 30, 2022		1,808,995		$	1.14		2.42	$	—
Exercisable at June 30, 2022		1,151,662		$	1.15		2.47	$	—

A summary of the status of Paramount’s non-vested options as of June 30, 2022 and 2021 and changes during the years ended June 30, 2022 and 2021 are 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 June 30, 2022		657,333		$	0.55

As of June 30, 2022 and 2021, there was $22,960 and $143,998 respectively of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the employee share option plan. That cost is expected to be recognized over a weighted-average period of 1.16 years. The total fair value of shares vested during the years ended June 30, 2022 and 2021, was $152,486 and $332,835, 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 year-ended June 30, 2022, the Company granted 701,000 RSUs (2021 - Nil)

During the year-ended June 30, 2022, share-based compensation expenses related to service condition RSUs and performance condition RSUs was $76,003 and $96,403, 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 June 30, 2022		701,000	$	0.65

As of June 30,2022, there was approximately $284,366 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 0.91 years.