STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2026

Stock Options

The Company estimates the grant date fair value of the stock options with service conditions (i.e., a condition that requires an employee to render services to the Company for a stated period of time to vest) using a Black-Scholes valuation model. The Company’s assumption for expected volatility is based on its historical volatility data related to market trading of its own Common Stock. The Company uses the simplified method to determine expected term, as the Company does not have adequate historical exercise and forfeiture behavior on which to base the expected life assumption. The dividend yield assumption is based on dividends expected to be paid over the expected life of the stock option. The risk-free interest rate assumption is determined by using the U.S. Treasury rates of the same period as the expected option term of each stock option.

There were no options granted during the nine months ended March 31, 2026. The fair value of options granted during the nine months ended March 31, 2025 were determined using the following assumptions and includes only options with an established grant date under ASC 718:


	Nine months ended March 31,
		2025
Expected volatility (percent)		49.5% - 50.5%
Weighted average expected life (years)		4.5
Dividend yield (percent)		0.0		%
Risk-free interest rate (percent)		3.4% - 3.5%
Number of options granted		30,000
Weighted average exercise price		$	6.86
Weighted average grant date fair value		$	3.10

The total expense recognized for stock options awards for the three months ended March 31, 2026 and 2025 was $0.1 million and $0.2 million, respectively. Stock-based compensation related to stock options with an established grant date for the nine months ended March 31, 2026 and 2025 was $0.3 million and $0.9 million, respectively.

Restricted Stock Awards

The Company has granted service based restricted stock awards to employees. The Company determines expense related to restricted stock awards using the closing stock price on the grant date and these awards are expensed under the accelerated attribution method over the vesting period which is typically a three-year service period. The total expense recognized for restricted stock awards for the three months ended March 31, 2026 and 2025 was $0.6 million and $0.4 million, respectively.

The total expense recognized for restricted stock awards for both the nine months ended March 31, 2026 and 2025 was $2.0 million and $1.5 million.