v3.25.4
Note 8 - Equity Transactions and Stock-based Compensation
6 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Equity [Text Block]

Note 8. Equity Transactions and Stock-Based Compensation

 

In December 2025, the Board of Directors Adopted the Integrated BioPharma, Inc. Equity Incentive Plan (the “Plan”) which authorized the issuance of 7,500,000 shares of the Company’s Common Stock.

 

In December 2025, the Board of Directors authorized the issuance of up to 534,000 stock options to the Company officers and employees. The Company issued 526,500 stock options with an exercise price ranging from $0.31 to $0.35, vesting over three years, with expiration terms of ten years from the date of grant. 

 

For the three and six months ended December 31, 2025 and 2024, the Company incurred stock-based compensation expenses of $42 and $43, and $91 and $96, respectively.  The Company expects to record additional stock-based compensation of $303 over the remaining vesting periods of approximately one to three years for all non-vested stock options.

 

The Company used the following assumptions to calculate the fair value of the stock option grants using the Black-Scholes option pricing model on the measurement date during the six months ended December 31, 2025:

 

Risk Free Interest Rate

  3.94% to 4.17%

Volatility

  96.9% to 110.9%

Term

 

7.5 to 10 years

 

Dividend Rate

  0.00%

Closing Price of Common Stock

  $0.32 

 

The Company calculates expected volatility for a stock-based grant based on historic daily stock price observations of its common stock during the period immediately preceding the grant that is equal in length to the expected term of the grant. The expected term of the options is estimated based on the Company’s historical exercise rate and forfeiture rates are estimated based on employment termination experience. The risk free interest rate is based on U.S. Treasury yields for securities in effect at the time of grants with terms approximating the term of the grants. The assumptions used in the Black-Scholes option valuation model are highly subjective, and can materially affect the resulting valuations.

 

 

 

A summary of the Company’s stock option activity, and related information for the six months ended December 31, 2025, is as follows:

 

      

Weighted

 
      

Average

 
      

Exercise

 
  

Options

  

Price

 
         

Outstanding as of June 30, 2025

  4,481,350  $0.39 

Granted

  526,500   0.33 

Exercised

  -   - 
Terminated  (51,666)  0.30 

Expired

  (13,667)  0.43 

Outstanding as of December 31, 2025

  4,942,517  $0.38 

Exercisable at December 31, 2025

  3,828,517  $0.40