Stock Based Compensation

9 Months Ended

Mar. 31, 2026

Stock Based Compensation [Abstract]

Stock Based Compensation

Note 4. Stock Based Compensation

The Company follows FASB ASC 718-40 “Compensation – Stock Compensation” in establishing standards for the accounting of transactions in which an entity exchanges its equity instruments for goods or services, transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments, or transactions that may be settled by the issuance of those equity instruments. ASC 718 requires that the cost resulting from all share-based payment transactions be recognized in the financial statements based on the fair value of the share-based payment. ASC 718 establishes fair value as the measurement objective in accounting for share-based payment transactions with employees, except for equity instruments held by employee share ownership plans. Included as a reduction to the cost recognized for share-based payments is an estimate for option forfeitures. It is the Company’s policy to estimate expected option forfeitures based on historical experience. Actual forfeitures are adjusted prior to the vesting date if the impact is material.

Total stock-based compensation expense recognized in the statements of comprehensive income for the three-month periods ended March 31, 2026 and 2025 was $51,638 and $93,223, respectively, before income taxes. The amount of this stock-based compensation expense related to non-qualified stock options (“NQSOs”) for the three-month periods ended March 31, 2026 and 2025 was $3,728 and $8,362, respectively. The deferred tax benefit related to the NQSOs as of March 31, 2026 and 2025 was $783 and $1,756, respectively. Total stock-based compensation expense recognized in the statements of comprehensive income for the nine-month periods ended March 31, 2026 and 2025 was $177,716 and $286,256, respectively, before income taxes. The amount of this stock-based compensation expense related to NQSOs for the nine-month periods ended March 31, 2026 and 2025 was $14,272 and $23,783, respectively. The deferred tax benefit related to the NQSOs as of March 31, 2026 and 2025 was $2,997 and $4,994, respectively. The remaining stock option expense in each year related to incentive stock options (“ISOs”) which are not deductible by the Company when exercised, assuming a qualifying disposition, and as such no deferred tax benefit was established related to these amounts.

As of March 31, 2026, there was $55,379 of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over the next three quarters, of which $49,166 relates to ISOs and $6,213 relates to NQSOs. The total deferred tax benefit related to these awards is expected to be $1,305.

The Company has one employee stock option plan under which options or stock awards may be granted, the 2017 Stock Option and Restricted Stock Plan (the "2017 Plan"), approved by the Company’s stockholders at the Company’s Annual Meeting on December 1, 2017. The Board of Directors may grant options to acquire shares of common stock to employees and non-employee directors of the Company at the fair market value of the common stock on the date of grant. The maximum aggregate number of shares of Common Stock subject to options or awards to non-employee directors is 133,000 and the maximum aggregate number of shares of Common Stock subject to options or awards granted to non-employee directors during any single fiscal year is the lesser of 13,300 and 33 1/3% of the total number of shares subject to options or awards granted in such fiscal year. The maximum number of shares subject to options or awards granted to any individual employee may not exceed 15,000 in a fiscal year. Generally, options granted have a two-year vesting period based on two years of continuous service and have a ten-year contractual life. Option grants provide for accelerated vesting if there is a change in control. Shares issued upon the exercise of options are from those held in Treasury. Options covering 400,000 shares are authorized for issuance under the 2017 Plan. As of March 31, 2026, options covering 250,094 shares have been exercised, options covering 134,937 shares are outstanding, and options covering 14,969 shares remain available for grant after factoring cancelled options, which are eligible to be re-granted. As of March 31, 2026 all options under the Company’s 2007 Stock Option and Restricted Stock Plan had been either granted, exercised, or expired.

ASC 718 requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option valuation model, which incorporates various assumptions including those for dividend yield, volatility, expected life and interest rates.

The table below outlines the weighted average assumptions that the Company used to calculate the fair value of each option award during the nine months ended March 31, 2025. There were no option awards during the nine months ended March 31, 2026.

	March 31, 2025
Dividend yield		3.79%
Company’s expected volatility		32.85%
Risk-free interest rate		4.35%
Expected term		5.1 yrs
Weighted average fair value per share of options granted during the period	$	5.37

The Company paid regular cash dividends on common stock of $0.75 per share and a special dividend on common stock of $0.75 per share for the nine months ended March 31, 2026 and paid $0.75 cash dividends for the nine months ended March 31, 2025. Expected stock price volatility is based on the historical volatility of the Company’s stock. The risk-free interest rate is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options. The expected option term (in years) represents the estimated period of time until exercise and is based on actual historical experience.

The following table summarizes stock option activity during the nine months ended March 31, 2026 and 2025:

	Employee Stock Option Plans
						Weighted
	Number of			Weighted		Average
	Shares			Average		Remaining		Aggregate
	Subject			Exercise		Contractual		Intrinsic
	to Option			Price		Term		Value
Balance at July 1, 2024		322,056		$	18.41		6.59
Granted		79,000		$	21.79		9.29
Exercised		(82,600	)	$	17.94		—
Forfeited or expired		(500	)	$	16.54		—
Outstanding at March 31, 2025		317,956		$	19.37		6.83	$	2,471,791
Vested or expected to vest at March 31, 2025		302,783		$	19.10		6.64	$	2,363,682
Exercisable at March 31, 2025		162,556		$	19.38		4.86	$	1,262,070
Balance at July 1, 2025		228,146		$	19.26		7.30
Granted		—			—		—
Exercised		(90,709	)	$	18.50		—
Forfeited or expired		(2,500	)	$	21.50		—
Outstanding at March 31, 2026		134,937		$	19.74		7.14	$	4,815,012
Vested or expected to vest at March 31, 2026		125,433		$	19.60		7.05	$	4,462,133
Exercisable at March 31, 2026		60,937		$	17.10		5.74	$	2,335,357

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing sale price of the Company’s common stock as reported on the NYSE American on March 31, 2026 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders if all option holders had exercised their options on March 31, 2026. This amount changes based on the fair market value of the Company’s common stock. The intrinsic value of options exercised during the nine months ended March 31, 2026 and 2025 was $1,933,156 and $841,603, respectively.

The following table summarizes changes in non-vested stock options during the nine months ended March 31, 2026 and 2025:

	Weighted Number			Average
	of Shares			Grant Date
	Subject			Fair Value
	to Option			(per Option)
Non-vested at July 1, 2024		147,300		$	4.15
Granted		79,000		$	5.37
Vested		(70,400	)	$	4.16
Forfeited or expired		(500	)	$	4.03
Non-vested at March 31, 2025		155,400		$	4.76
Non-vested at July 1, 2025		144,400		$	4.76
Granted		—			—
Vested		(67,900	)	$	4.03
Forfeited or expired		(2,500	)	$	5.45
Non-vested at March 31, 2026		74,000		$	5.40