Stock Options

6 Months Ended

Dec. 31, 2025

Stock Options

Stock Options

NOTE 10 - Stock Options

The Company recognized stock-based compensation of $185,000 and $386,000 for the three months ended December 31, 2025 and 2024, respectively and recognized stock-based compensation of $494,000 and $757,000 for the six months ended December 31, 2025 and 2024, respectively.  Stock-based compensation is included in Selling, General and Administrative expense in the consolidated statements of income.

The Company has five stock option plans, two of the plans are available to grant stock options to employees (“Employee Plans”), and three of the plans are available to issue stock options to non-employee directors and consultants (“Non-Employee Plans”).

The Employee Plans provide for the Company to grant stock options, which are intended to qualify as incentive stock options (“ISOs”) or non-incentive stock options. Plan participants who are granted ISOs and possess more than 10% of the voting rights of the Company’s

outstanding common stock must be granted options with an exercise price of at least 110% of the fair market value on the date of grant. Options granted under the Employee Plans have a term of up to 10 years, from date of grant, at an exercise price equal to or greater than the fair market value on the date of grant. The Employee Plans provide a cash-less exercise option for the participants, and options granted vest in full upon a “change in control” as defined in the plans.

The Non-Employee Plans provide for the Company to grant stock options with a term of up to 10 years, from date of grant, at an exercise price equal to or greater than the fair market value on the date of grant. The Non-Employee Plans provide a cash-less exercise option for the participants, and options granted vest in full upon a “change in control” as defined in the plans.

The following table reflects provisions of each of the stock option plans:

Plan Name	Options available to be granted at plan inception	Plan termination date	Options available for grant as of December 31, 2025
2012 Employee Stock Option plan	1,900,000	December 2022	-
2022 Employee Stock Option plan	950,000	December 2032	820,000
2012 Non-Employee Stock Option plan	100,000	December 2022	-
2018 Non-Employee Stock Option plan	100,000	December 2028	4,000
2020 Non-Employee Stock Option plan	100,000	May 2030	45,100

The following table reflects the total activity for the stock option plans for the six months ended December 31:

					Weighted average
					Remaining		Aggregate
	Number of		Weighted average		Contractual Life		Intrinsic Value
	Options		exercise price		(in years)		(in thousands)
Outstanding, beginning of year		628,236	$	24.70		6.5	$	4,742,000
Granted		-		-
Forfeited/Lapsed		(6,000)	$	(22.50)
Exercised		(18,000)	$	(22.99)			$	325,000
Outstanding, end of period		604,236	$	24.77		6.0	$	10,389,000
Vested and Exercisable, end of period		513,936	$	22.17		5.7	$	10,102,000
Weighted average fair value at grant date of options granted		n/a				n/a

There were no stock options granted during the three and six months ended December 31, 2025 and 2024, respectively. The total fair value of stock options vested during the three and six months ended December 31, 2025 and 2024 was $711,000 and $864,000, and $770,000 and $961,000, respectively. The aggregate intrinsic value of stock options exercised during the three and six months ended December 31, 2025 and 2024 was $0 and $325,000 and $0 and $67,000, respectively. As of December 31, 2025, the total compensation cost related to nonvested awards not yet recognized was $1,354,000. Cash received from exercises of stock options during the three and six months ended December 31, 2025 and 2024 was $0 and $0, and $0 and $54,000, respectively.