Date Approved

Name of Plan

Type of Plan

Authorized
Shares

June 2014

2014 Stock Option Incentive Plan

Stock options

750,000

June 2015

2015 Equity Incentive Plan

Stock & stock options

1,250,000

April 2018

2018 Equity Incentive Plan

Stock & stock options

10,000,000

12,000,000

As of June 30, 2025, the Company may no longer grant new awards under the 2014 and Stock Option Incentive Plan and the 2015 Equity Incentive Plan. Stock options issued under these plans continue through their expiration date which is seven years from their respective grant date.


Common Stock						Reserved Shares
Conversions of Preferred Stock and cumulative Preferred Stock dividends						96,137
Issuance of shares to former executive upon the occurrence of a Cantaloupe transaction (1)						140,000
Total shares reserved for future issuance						236,137

Stock options are granted at exercise prices equal to the fair market value of the Company's common stock at the date of grant. The options typically vest over a three-year period and each option, if not exercised or terminated, expires on the seventh anniversary of the grant date.

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) it grants 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.


	For the year ended June 30,
	2025	2024	2023

Expected volatility	49.5 - 50.5%	52.6 - 69.7%	74.6 - 77.6%
Expected life (years)	4.5	4.2 - 4.5	4.4 - 4.6
Expected dividends	0.0%	0.0%	0.0%
Risk-free interest rate	3.4 - 3.5%	4.0 - 4.4%	2.7 - 4.1%


	For the year ended June 30, 2025
	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of year	3,971,834	$	6.63	4.3	$	3,582
Granted	30,000	$	6.86
Exercised	(111,000)	$	6.98		$	285
Forfeited	(13,333)	$	6.02
Expired	(12,667)	$	7.31
Outstanding options, end of year	3,864,834	$	6.42	3.4	$	17,374
Exercisable options, end of year	2,966,924	$	6.86	3.1	$	12,317


	For the year ended June 30, 2024
	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of year	3,873,632	$	6.35	5.1	$	7,595
Granted	175,000	$	6.92
Exercised	(18,334)	$	6.06		$	—
Forfeited	(29,799)	$	6.90
Expired	(28,665)	$	4.40
Outstanding options, end of year	3,971,834	$	6.63	4.3	$	3,582
Exercisable options, end of year	2,602,259	$	7.28	3.8	$	1,085


	For the year ended June 30, 2023
	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of year	3,529,833	$	7.41	4.5	$	194
Granted	1,720,000	$	4.61
Exercised	—	$	—		$	—
Forfeited	(1,376,201)	$	6.86
Expired	—	$	—
Outstanding options, end of year	3,873,632	$	6.35	5.1	$	7,595
Exercisable options, end of year	1,341,466	$	7.26	3.9	$	1,536

The weighted average grant date fair value per share for the Company's stock options granted during the years ended June 30, 2025, 2024, and 2023 was $3.10, $4.02, and $2.89, respectively. The total fair value of stock options vested during the years ended June 30, 2025, 2024, and 2023 was $3.2 million, $4.5 million, and $3.8 million, respectively.

COMMON STOCK GRANTS

The Company makes annual grants of restricted shares of common stock to executive officers pursuant to long-term stock incentive plans (“LTIPs”) which vest annually, typically over three years.

The Company also grants restricted stock units ("RSU") to members of the board of directors as compensation for their service on the board as well as to employees as additional compensation. These stock awards typically vest over a one to three-year period.


	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at June 30, 2022	448,908	$	7.00
Granted	346,346	5.41
Vested	(274,011)	5.96
Forfeited	(97,342)	8.27
Nonvested at June 30, 2023	423,901	6.08
Granted	439,363	6.72
Vested	(311,093)	6.38
Forfeited	(4,207)	7.58
Nonvested at June 30, 2024	547,964	6.41
Granted	577,553	7.40
Vested	(295,062)	6.08
Forfeited	(118,319)	6.48
Nonvested at June 30, 2025	712,136	$	7.33

The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized over the requisite service period using the accelerated attribution method. The Company accounts for forfeitures as they occur.


($ in thousands)	For the year ended June 30,
Award type	2025		2024		2023
Stock options	$	1,196	$	2,992	$	2,967
Stock grants	2,812		2,117		1,770
Total stock-based compensation expense	$	4,008	$	5,109	$	4,737

The Company recognized tax benefits of $0.7 million, $0.5 million, and $1.4 million, related to stock compensation expense for the years ended June 30, 2025, 2024, and 2023, respectively.