| SHARE-BASED COMPENSATION |
NOTE
14. SHARE-BASED COMPENSATION
Restricted
Stock Awards
On
March 18, 2026, the Company granted the following:
| |
● | An
aggregate of 20,000
time-vesting restricted
stock awards (“RSAs”) to non-employee directors, which vest on the 12-month anniversary
of the Grant Date, subject to continued service through the vesting date. |
| |
● | An
aggregate of 10,500
time-vesting RSAs
to non-executive employees, which vest on the 48-month anniversary of the Grant Date, subject
to continued employment through the vesting date. |
| |
● | 9,150
time-vesting RSAs
to the Chief Executive Officer (“CEO”) and 9,150
time-vesting restricted
stock awards to the Chief Financial Officer (“CFO”), which vest on the 48-month
anniversary of the Grant Date, subject to continued service through the vesting date. |
| |
● | An
Aggregate of 24,500
RSAs to certain
employees, 21,350
RSAs to the CEO,
and 21,350
RSAs to the CFO
(collectively, the “Performance-Based RSAs”). These
Performance-Based RSAs vest in tranches and upon the satisfaction of the following performance
conditions: (1) 30% of the shares vest on the later of (i) the date certified by the Committee
as the date on which a specified clinical trial milestone has been achieved, and (ii) the
one-year anniversary of the grant date, subject to continued service through the vesting
date, (2) 40% of the shares vest on the later of (i) the date of completion of a specified
regulatory submission to the FDA, and (ii) the one-year anniversary of the Grant Date, subject
to continued service through the vesting date, and (3) 30% of the shares vest on the later
of (i) the date certified by the Board of Director’s Compensation Committee as the
date on which a specified commercial supply and sales milestone has been achieved, and (ii)
the one-year anniversary of the Grant Date, subject to continued service through the vesting
date. As
of March 18, 2026, the Company considered the satisfaction of the performance condition to
be probable, and as a result began to recognize stock-based compensation from the Performance-Based
RSAs. |
The Company recognized stock-based compensation expense of $97,633 and $190,045 for the years ended June 30, 2026
and 2025, respectively.
As
of June 30, 2026, there was approximately $323,447 of unrecognized share-based compensation expense related to unvested awards, which is
expected to be recognized over a weighted-average period of approximately 0.94 year.
The
table below shows the activity related to restricted stock awards during the year ended June 30, 2026:
SCHEDULE OF NON VESTED ACTIVITY RELATED TO RESTRICTED STOCK AWARDS
| | |
Number of Shares | | |
Weighted Average Grant
Date Fair Value per Share | |
| Nonvested as of June 30, 2025 | |
| - | | |
$ | - | |
| Granted | |
| 116,000 | | |
| 3.63 | |
| Vested | |
| - | | |
| - | |
| Forfeited | |
| - | | |
| - | |
| Nonvested as of June 30, 2026 | |
| 116,000 | | |
$ | 3.63 | |
|