Stock Based Compensation	3 Months Ended
Sep. 30, 2022
Stock Based Compensation
Stock Based Compensation	Note 10 - Stock Based Compensation On May 24, 2022, the stockholders of Marathon Bancorp, Inc. approved the Company’s 2022 Equity Incentive Plan (the “Plan”), which provides for the grant of stock-based awards to officers, employees and directors of the Company and Marathon Bank. Under provisions of the Plan, while active, awards may consist of grants of incentive stock options, nonqualified stock options, restricted stock and restricted stock units. Stock options totaling 109,245 and restricted stock awards totaling 43,698 were authorized for award under the Plan. Stock Options On June 28, 2022, the Compensation Committee of the board of directors of the Company approved the grant of stock option awards to its directors, executive officers, senior officers and other officers under the Plan. A total of 73,194 stock option awards were granted to its directors, executive officers, senior officers and other officers (18,752 and 54,622 options were awarded to directors and employees, respectively). Director awards are considered non-qualified stock options while employee awards are considered incentive stock options. The awards vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or June 2032. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 3.27%; volatility factors of the expected market price of the Company's common stock of 20.76%; weighted average expected lives of the options of 6.5 years; cash dividend yield of 0%. Based upon these assumptions, the weighted average fair value of options granted was $3.33. The total expense of $243,736 will be amortized to expense over a period of 60 months commencing July 1, 2022. Expense amortized during the three months ended September 30, 2022 totaled $12,187. There are no options available for exercise as of September 30, 2022 or June 30, 2022. The aggregate intrinsic value of a stock option represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options prior to the expiration date. The intrinsic value can change based on fluctuations in the market value of the Company’s stock. At September 30, 2022 and June 30, 2022, the stock options had no intrinsic value. At September 30, 2022, the average remaining contractual life of outstanding options and shares exercisable was 9.75 years. Restricted Stock On June 28, 2022, the Compensation Committee of the board of directors of the Company approved the grant of restricted stock awards to its directors, executive officers, senior officers and other officers under the Plan. A total of 40,203 restricted stock awards were granted to its directors, executive officers, senior officers and other officers under the Plan (9,614 and 30,589 awards were granted to directors and employees, respectively). The restricted stock awards vest ratably over five years (20% per year for each year of the participant’s service with the Company). The total expense of $448,665 will be amortized to expense over a period of 60 months commencing July 1, 2022. Expense amortized during the three months ended September 30, 2022 totaled $22,433.

Stock Based Compensation

3 Months Ended

Sep. 30, 2022

Note 10 - Stock Based Compensation

On May 24, 2022, the stockholders of Marathon Bancorp, Inc. approved the Company’s 2022 Equity Incentive Plan (the “Plan”), which provides for the grant of stock-based awards to officers, employees and directors of the Company and Marathon Bank. Under provisions of the Plan, while active, awards may consist of grants of incentive stock options, nonqualified stock options, restricted stock and restricted stock units. Stock options totaling 109,245 and restricted stock awards totaling 43,698 were authorized for award under the Plan.

Stock Options

On June 28, 2022, the Compensation Committee of the board of directors of the Company approved the grant of stock option awards to its directors, executive officers, senior officers and other officers under the Plan.

A total of 73,194 stock option awards were granted to its directors, executive officers, senior officers and other officers (18,752 and 54,622 options were awarded to directors and employees, respectively). Director awards are considered non-qualified stock options while employee awards are considered incentive stock options. The awards vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or June 2032. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 3.27%; volatility factors of the expected market price of the Company's common stock of 20.76%; weighted average expected lives of the options of 6.5 years; cash dividend yield of 0%. Based upon these assumptions, the weighted average fair value of options granted was $3.33. The total expense of $243,736 will be amortized to expense over a period of 60 months commencing July 1, 2022. Expense amortized during the three months ended September 30, 2022 totaled $12,187. There are no options available for exercise as of September 30, 2022 or June 30, 2022.

The aggregate intrinsic value of a stock option represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options prior to the expiration date. The intrinsic value can change based on fluctuations in the market value of the Company’s stock. At September 30, 2022 and June 30, 2022, the stock options had no intrinsic value.

At September 30, 2022, the average remaining contractual life of outstanding options and shares exercisable was 9.75 years.

Restricted Stock

On June 28, 2022, the Compensation Committee of the board of directors of the Company approved the grant of restricted stock awards to its directors, executive officers, senior officers and other officers under the Plan. A total of 40,203 restricted stock awards were granted to its directors, executive officers, senior officers and other officers under the Plan (9,614 and 30,589 awards were granted to directors and employees, respectively). The restricted stock awards vest ratably over five years (20% per year for each year of the participant’s service with the Company). The total expense of $448,665 will be amortized to expense over a period of 60 months commencing July 1, 2022. Expense amortized during the three months ended September 30, 2022 totaled $22,433.