Stock Based Compensation

6 Months Ended

Dec. 31, 2021

Stock Based Compensation

Note 8 - Stock Based Compensation

Note 8 — Stock Based Compensation

The equity incentive plan of the Company was established in February of 2017. The Board of Directors of the Company may from time to time, in its discretion grant to directors, officers, consultants and employees of the Company, non-transferable options to purchase common shares, provided that the number of options issued do not exceed 25,000,000. The options are exercisable for a period of up to 4 years from the date of the grant. The number of shares authorized to be issued under the equity incentive plan was increased from 10,000,000 to 25,000,000 through consent of stockholders to amend and restate the equity incentive plan.

The average fair value of stock options granted was estimated to be $0.14 and $0.07. This estimate was made using the Black-Scholes option pricing model and the following weighted average assumptions for the three months ended December 31, 2021:

Expected option life (years)	2-4
Expected stock price volatility	227 to 258	%
Expected dividend yield	-
Risk-free interest rate	0.44 to 0.54	%

A summary of option activity under the employee share option pan as of December 31, 2021 and changes during the year then ended is presented below.

	Shares			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Price		Aggregate Intrinsic Value
Options:
Outstanding at July 1, 2021		13,594,259		$	0.08
Granted		562,500		$	0.13
Exercised, converted		-		$	0.00
Forfeited / exchanged / modification		(542,027	)	$	0.07
Outstanding at December 31, 2021		13,614,732		$	0.11		2.5	$	-
Exercisable at December 31, 2021		9,557,364		$	0.08		3.0
Number of options available for grant at end of period		426,870

A summary of the status of the Company’s non vested shares as of December 31, 2021, and changes during the year quarter December 31, 2021, is presented below:

Options	Shares			Weighted-Average Grant-Date Fair Value
Nonvested at July 1, 2021		12,130,179		$	0.08
Granted		562,500		$	0.13
Vested		(542,027	)	$	0.07
Forfeited		(955,733	)	$	0.08
Nonvested at December 31, 2021		11,194,920		$	0.08

Stock-based compensation expense attributable to stock options was approximately $264,628for the six months ended December 31, 2021. As of December 31, 2021, there was approximately $2,268,871of unrecognized compensation expense related to 11,194,920nonvested stock options outstanding, and the weighted average vesting period for those options was3 years.

Warrants

At December 31, 2021, the Company had outstanding warrants to purchase the Company’s common stock which were issued in connection with multiple financing arrangements. Information relating to these warrants is summarized as follows:

Warrants	Remaining Number Outstanding		Weighted Average Remaining Life (Years)		Weighted Average Exercise Price
Warrants - SEDA Financing		86,957		1.80	$	1.15
Warrants - Issued with Convertible Notes		600,000		2.23	$	0.75
Warrants - Securities Purchase Agreement		360,577		3.02	$	0.78
Warrants A - Securities Purchase Agreement		28,072,364		3.02	$	0.16
Total		29,119,898
Aggregate intrinsic value at December 31, 2021	$	0