Stockholders' Equity

9 Months Ended

Mar. 31, 2022

Equity [Abstract]

Stockholders' Equity

16. Stockholders’ Equity

Restricted Stock Awards and Restricted Stock Units

In November 2021, the Compensation Committee of the Board of Directors (the Compensation Committee) in its discretion determined that an aggregate of 580,023 performance shares previously awarded to certain employees had vested. These restricted stock awards granted had both performance and service requirements in connection with the formation of the investment management business. The vesting of these awards was subject to a five-year service requirement and an investment management cumulative revenue collection target of $40 million for the five-year period ended November 3, 2021. The discretionary vesting of shares, as determined by the Compensation Committee resulted in a charge to stock-based compensation expense of $0.6 million during the nine months ended March 31, 2022.

In addition, during the three and nine months ended March 31, 2022, the Company granted 543,686 and 748,288, respectively, service-based restricted stock awards, which have various vesting terms between 1-3 years subject to service requirements.

Restricted stock units are subject to service requirements. The Company accounts for forfeitures of the restricted stock units in the period incurred. During the nine months ended March 31, 2022 the Company granted 7,845 and 140,294 shares of restricted stock units to employees and directors, respectively.

The activity of the Company’s restricted stock awards and restricted stock units for the nine months ended March 31, 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, 2021		904		$	3.71
Granted		896			2.14
Vested		(970	)		3.31
Forfeited		(153	)		3.92
Outstanding at March 31, 2022		677		$	2.22

Stock Options

The following table summarizes the Company’s option award activity as of and through March 31, 2022:

Options	Shares (in thousands)			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at June 30, 2021		2,493		$	3.69		4.51	$	-
Options granted		18			2.87		-		-
Exercised		-			-		-		-
Forfeited, cancelled or expired		(32	)		3.81		-		-
Outstanding at March 31, 2022		2,479		$	3.68		3.34	$	-
Exercisable at March 31, 2022		2,229		$	3.68		3.17	$	-
Vested and expected to vest as of March 31, 2022		2,479		$	3.66		3.34	$	-

During the three months ended March 31, 2022 and 2021, the Company recognized total stock-based compensation associated with all restricted stock and stock options of $0.5 million and $0.6 million, respectively. During the nine months ended March 31, 2022 and 2021, the Company recognized total stock-based compensation associated with all restricted stock and stock options of $2.2 million and $1.3 million, respectively.

As of March 31, 2022, the Company had unrecognized compensation costs related to all unvested share awards and options totaling $1.7 million.

During the nine months ended March 31, 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 nine months ended March 31, 2022 was $0.9 million, of which $0.2 million vested immediately, and the balance will vest annually pro-rata over a three year period. Related compensation expense was $0.07 million and $0.4 million for the three and nine months ended March 31, 2022, respectively.