Stockholders' Equity

9 Months Ended

Mar. 31, 2023

Equity [Abstract]

Stockholders' Equity

12. Stockholders’ Equity

Restricted Stock Awards and Restricted Stock Units

Restricted stock awards have vesting terms between 1-3 years and are subject to service requirements. During the three and nine months ended March 31, 2023, the Company granted 563,351 and 963,299 restricted stock awards, respectively.

Restricted stock units are subject to service requirements. During the three and nine months ended March 31, 2023 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 occurred.

The activity of the Company’s restricted stock awards and restricted stock units for the nine months ended March 31, 2023 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		963			2.20
Vested		(581	)		2.15
Forfeited		(5	)		3.07
Outstanding at March 31, 2023		1,689		$	1.90

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 March 31, 2023, there were 167,939 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 57,931 restricted stock awards, for which the service condition was met during the nine months ended March 31, 2023.

Stock Options

The following table summarizes the Company’s option award activity as of and during the nine months ended March 31, 2023:

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		(988	)		3.63		-		-
Outstanding at March 31, 2023		1,271		$	3.72		4.19	$	-
Exercisable at March 31, 2023		1,439		$	3.71		4.20	$	-
Vested and expected to vest as of March 31, 2023		1,271		$	3.72		4.19	$	-

During the three and nine months ended March 31, 2023, the Company recognized total stock-based compensation expense associated with all restricted stock and stock options of $0.6 million and $2.0 million, respectively. During the three and nine months ended March 31, 2022, the Company recognized total stock-based compensation expense associated with all restricted stock and stock options of $0.5 million and $2.2 million, respectively.

As of March 31, 2023, the Company had unrecognized compensation costs related to all unvested restricted stock awards and stock options totaling $2.5 million.

During the nine months ended March 31, 2023, 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, 2023 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 and $0.3 million for the three and nine months ended March 31, 2023, respectively.

During the three and nine months ended March 31, 2023, the Company issued compensation to certain employees in the form of restricted membership interest rights in MP II to be settled with the membership interest currently held by the Company. The total value of the MP II restricted membership interests awarded for the three and nine months ended March 31, 2023 was $0.1 million, which will vest on the third anniversary of the grant date. Related compensation expense was $11 thousand for the three and nine months ended March 31, 2023.