Stockholders' Equity

3 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity

13. Stockholders’ Equity

Restricted Stock Awards and Restricted Stock Units

During the three months ended September 30, 2022, the Company granted 397,545 restricted stock awards, which have various vesting terms between 1-3 years subject to service requirements.

Restricted stock units are subject to service requirements. During the three months ended September 30, 2022 the Company did not grant any shares of restricted stock units.

The Company accounts for forfeitures of the restricted stock awards and restricted stock units in the period incurred.

The activity of the Company’s restricted stock awards and restricted stock units for the three months ended September 30, 2022 was as follows:

Restricted Stock Awards and Restricted Stock Units	Restricted Stock (in thousands)			Weighted Average Grant Date Fair Value
Outstanding at June 30, 2022		1,312		$	1.79
Granted		398			2.19
Vested		(238	)		2.16
Forfeited		(3	)		2.50
Outstanding at September 30, 2022		1,469		$	1.84

Non-Employee Director Deferred Compensation Plan

In December 2020, the Company established the Great Elm Group, Inc. Non-Employee Directors Deferred Compensation Plan allowing non-employee directors to defer their cash and/or equity compensation under a non-revocable election for each calendar year. Such compensation is deferred until the earlier of 3 years from the original grant date of such compensation, termination of service, or death, and is payable in common stock shares. As of September 30, 2022, there were 138,973 restricted stock awards and restricted stock units that were deferred under this plan (and thus included in the number of restricted stock awards and restricted stock units outstanding as of that date), including 28,965 restricted stock awards, for which the service condition was met during the three months ended September 30, 2022.

Stock Options

The following table summarizes the Company’s option award activity as of and during the three months ended September 30, 2022:

Options	Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at June 30, 2022		2,134		$	3.68		3.34	$	-
Options granted		125			3.60		-		-
Forfeited, cancelled or expired		(732	)		3.59		-		-
Outstanding at September 30, 2022		1,527		$	3.72		4.63	$	-
Exercisable at September 30, 2022		1,436		$	3.70		4.67	$	-
Vested and expected to vest as of September 30, 2022		1,527		$	3.72		4.63	$	-

During the three months ended September 30, 2022 and 2021, the Company recognized total stock-based compensation expense associated with all restricted stock and stock options of $0.8 million and $0.6 million, respectively.

As of September 30, 2022, the Company had unrecognized compensation costs related to all unvested share awards and options totaling $2.4 million.

During the three months ended September 30, 2022, the Company issued compensation to certain employees in the form of GECC common shares to be settled with GECC shares currently held by the Company. The total value of GECC shares awarded for the three months ended September 30, 2022 was $0.4 million, of which $0.1 million vested immediately, and the balance will vest annually pro-rata over a three year period. Related compensation expense was $0.1 million for the three months ended September 30, 2022.