Capital Stock

9 Months Ended

Mar. 31, 2024

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 as of March 31, 2024 (June 30, 2023 – 200,000,000 common shares with par value $0.01 per common share).

For the three months ended March 31, 2024, the Company issued 500,000 shares of common stock from its ATM program for gross proceeds of $182,500. On-time legal expenses and commissions related to the ATM program for the period amounted to $155,259 resulting in net proceeds of $27,241 and issued 1,077,636 shares of common stock for payment of interest accrued (Note 6) with a fair value of $395,833. The Company also issued 702,000 shares related to awards made under its equity compensation plans.

For the three months ended March 31, 2023, the Company issued 341,297 shares of common stock for payment of interest accrued (Note 6) with a fair value of $160,413. The Company also issued 425,500 shares related to awards made under its equity compensation plans.

For the nine months ended March 31, 2024, the Company issued 4,261,515 shares of common stock from its ATM program for net proceeds of $1,167,893. One-time legal and commissions related to the ATM program for the period amounted to $382,065. We also issued 2,189,207 shares of common stock for payment of interest accrued (Note 6) with a fair value of $738,670. The Company also issued 702,000 shares related to awards made under its equity compensation plans.

For the nine months ended March 31, 2023, the Company issued 1,393,757 shares of common stock from its ATM program for net proceeds of $473,688 and issued 799,613 shares of common stock for payment of interest accrued (Note 6) with a fair value of $320,826. The Company also issued 425,500 shares related to awards made under its equity compensation plans.

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 5.5 million shares of common stock.

Total stock-based compensation for the nine months ended March 31, 2024 and 2023 were $259,325 and $278,346, 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 nine months ended March 31, 2024, the Company did not grant stock options (Nine months ended March 31, 2023 – 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:

	Nine Months Ended March 31, 2024	Nine Months Ended March 31, 2023
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 March 31, 2024, share-based compensation expense relating to service condition options and performance condition options was $nil and $974, respectively (2023 -$nil and $2,337).

For the nine months ended March 31, 2024, share-based compensation expense relating to service condition options and performance condition options was $nil and $3,643, respectively (2023 -$12,021 and $9,690).

A summary of stock option activity under the Stock Incentive and Compensation Plans as of March 31, 2024 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 March 31, 2024		1,405,000		$	1.05		1.31	$	—
Exercisable at March 31, 2024		946,664		$	1.05		1.38	$	—

A summary of the status of Paramount’s non-vested options at March 31, 2024 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 March 31, 2024		458,336		$	0.47

As of March 31, 2024, there was approximately $4,531 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 0.95 years. The total fair value of stock based compensation that vested related to outstanding stock options during the nine months ended March 31, 2024 and 2023, was nil and $16,873, 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 nine months ended March 31, 2024 and 2023, the Company granted 1,360,000 and 630,000 RSUs respectively.

For the three months ended March 31, 2024, share-based compensation expenses related to service condition RSUs and performance condition RSUs was $82,001 and $32,865, respectively (2023 - $43,896 and $28,262).

For the nine months ended March 31, 2024, share-based compensation expenses related to service condition RSUs and performance condition RSUs was $158,308 and $64,003, respectively (2023 - $117,116 and $116,971).

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		1,360,000			0.28
Vested		(615,500	)		0.42
Forfeited		—			—
Outstanding at March 31, 2024		1,725,000		$	0.31

As of March 31, 2024, there was approximately $320,736 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 1.56 years.