Capital Stock

3 Months Ended

Sep. 30, 2023

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, 2023 – 200,000,000 common shares with par value $0.01 per common share).

For the three months ended September 30, 2023, the Company issued 3,515,257 shares of common stock from its ATM program for net proceeds of $1,088,527 and issued 553,141 shares of common stock for payment of interest accrued (Note 6) with a fair value of $160,413.

For the three months ended September 30, 2022, the Company issued 341,297 shares of common stock for payment of interest accrued (Note 6) with a fair value of $160,413.

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 three months ended September 30, 2023 and 2022 were $66,684 and $117,826, respectively.

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 Stock Incentive and Compensation Plans).

For the three months ended September 30, 2023, the Company did not grant stock options (2022 – 50,000).

The fair value for these options were calculated using the Black-Scholes option valuations method. The weighted average assumptions used were as follows:

	Three Months Ended September 30, 2023	Three Months Ended September 30, 2022
Weighted average risk-free interest rate	N/A		2.79	%
Weighted-average volatility	N/A		58	%
Expected dividends	N/A	0
Weighted average expected term (years)	N/A	5
Weighted average fair value	N/A	$	0.19

For the three months ended September 30, 2023, share-based compensation expense relating to service condition options and performance condition options was $nil and $1,564, respectively (2022 -$11,084 and $3,648).

A summary of stock option activity under the Stock Incentive and Compensation Plans as of September 30, 2023 is presented below:

Options	Options			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at June 30, 2022		1,808,995		$	1.14		2.42	$	—
Granted		50,000			0.60		4.00		—
Exercised		—			—		—		—
Forfeited or expired		(453,995	)		1.37		—		—
Outstanding at June 30, 2023		1,405,000		$	1.05		2.06	$	—
Granted		—			—		—		—
Exercised		—			—		—		—
Forfeited or expired		—			—		—		—
Outstanding at September 30, 2023		1,405,000		$	1.05		1.81	$	—
Exercisable at September 30, 2023		946,664		$	1.05		1.88	$	—

A summary of the status of Paramount’s non-vested options at September 30, 2023 is presented below:

Non-vested Options	Options			Weighted- Average Grant- Date Fair Value
Non-vested at June 30, 2022		657,333		$	0.55
Granted		50,000			0.19
Vested		(95,002	)		0.41
Forfeited or expired		(153,995	)		0.82
Non-vested at June 30, 2023		458,336		$	0.47
Granted		—			—
Vested		—			—
Forfeited or expired		—			—
Non-vested at September 30, 2023		458,336		$	0.47

As of September 30, 2023, there was approximately $6,610 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 1.35 years. The total fair value of stock based compensation that vested related to outstanding stock options during the three months ended September 30, 2023 and 2022, was nil and nil, 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.

For the three months ended September 30, 2023 and 2022, there were no RSUs granted by the Company.

For the three months ended September 30, 2023, share-based compensation expenses related to service condition RSUs and performance condition RSUs was $43,493 and $21,627, respectively (2022 - $39,019 and $64,076)

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, 2022		701,000		$	0.65
Granted		630,000			0.30
Vested		(350,500	)		0.65
Forfeited		—			—
Outstanding at June 30, 2023		980,500		$	0.43
Granted		—			—
Vested		—			—
Forfeited		—			—
Outstanding at September 30, 2023		980,500		$	0.43

As of September 30, 2023, there was approximately $105,284 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 0.9 years.