Stock Based Compensation

9 Months Ended

Mar. 31, 2024

Stock Based Compensation

Stock Based Compensation

Note 9 — 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 20,000,000. 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 20,000,000 through consent of stockholders to amend and restate the equity incentive plan.

A summary of option activity under the employee share option plan as of March 31, 2024 and changes during the period then ended is presented below.

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Price		Aggregate Intrinsic Value
Options:
Outstanding at July 1, 2023		17,774,000		$	0.06
Granted		-		$	0.00
Exercised, converted		-		$	0.00
Forfeited / exchanged / modification		(899,000	)	$	0.00
Outstanding at March 31, 2024		16,875,000		$	0.05		0.5	$	-
Exercisable at March 31, 2024		16,733,630		$	0.05		0.5
Number of options available for grant at end of period		1,667,938

A summary of the status of the Company’s nonvested shares as of March 31, 2024, and changes during the quarter March 31, 2024, is presented below:

Options	Shares		Weighted- Average Grant-Date Fair Value
Nonvested at July 1, 2023		662,608	$	0.11
Granted		0	$	0.00
Vested		521,238	$	0.11
Forfeited		-	$	0.00
Nonvested at March 31, 2024		141,370	$	0.11

The Company recorded stock compensation expense of $83,820 and $256,793 during the three and nine months ended March 31, 2024, respectively.

As of March 31, 2024, there was approximately $71,407 of unrecognized compensation expense related to 141,370 nonvested stock options outstanding, and the weighted average vesting period for those options was 1 year.

Warrants

At June 30, 2023, 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		-	$	1.15
Warrants - Issued with Convertible Notes		600,000		0.23	$	0.75
Warrants - Securities Purchase Agreement		360,577		1.02	$	0.78
Warrants A - Securities Purchase Agreement		28,072,364		1.02	$	0.16
Total		29,119,898
Aggregate intrinsic value at June 30, 2023	$	0

At March 31, 2024, 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 - Securities Purchase Agreement		360,577		0.27		0.78
Warrants A - Securities Purchase Agreement		28,072,364		0.27	$	0.17
Total		28,432,941
Aggregate intrinsic value at March 31, 2024	$	0