Stock Based Compensation

12 Months Ended

Jun. 30, 2024

Stock Based Compensation

Stock Based Compensation

Note 12 — Stock Based Compensation and Payments

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 per share for the period ended June 30, 2024 and June 30, 2023. This estimate was made using the Black-Scholes option pricing model and the following weighted average assumptions:

	2024			2023
Expected option life (years)	2-4			2 - 4
Expected stock price volatility	227to254		%	227to254		%
Expected dividend yield		-			—
Risk-free interest rate	0.44to0.54		%	0.44to0.54		%

A summary of option activity under the employee share option plan as of June 30, 2024 and 2023 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, 2023		15,832,062		$	0.06
Granted		2,500,000		$	0.04
Exercised, converted		(558,062	)	$	0.00
Forfeited / exchanged / modification		-			-
Outstanding at July 1, 2023		17,774,000		$	0.06
Granted		-		$	0.00
Exercised, converted		-		$	0.00
Forfeited / exchanged / modification		(13,624,000	)	$	0.11
Outstanding at June 30, 2024		4,150,000		$	0.08		0.5	$	-
Exercisable at June 30, 2024		4,150,000		$	0.08		0.5
Number of options available for grant at end of period		10,617,326

A summary of the status of the Company’s nonvested shares as of and for the years ended June 30, 2024 and 2023 is presented below

Options	Shares			Weighted-Average Grant-Date Fair Value
Nonvested at July 1, 2023		13,450,170		$	0.11
Granted		2,500,000		$	0.04
Vested		(15,287,562	)	$	0.07
Forfeited		-			-
Nonvested at July 1, 2023		662,608		$	0.11
Granted				$	-
Vested		(662,608	)	$	0.11
Forfeited		-		$	-
Nonvested at June 30, 2024		-		$	0.00

Stock-based compensation expense attributable to stock options was approximately $280,665 and $360,105 for the years ended June 30, 2024 and 2023, respectively.

As of June 30, 2024 and 2023, there was approximately $47,535 and $328,200, respectively, of unrecognized compensation expense related to 141,170 and 13,450,170, respectively, nonvested stock options outstanding, and the weighted average vesting period for those options was 1 years.

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 June 30, 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		0.02		0.78
Warrants A - Securities Purchase Agreement		28,072,364		0.02	$	0.17
Total		28,432,941
Aggregate intrinsic value at June 30, 2024	$	0