The Company has established the Retention Plan to issue shares in the effort to retain key executives, directors, and employees. The Retention Plan allows for several different types of awards to be granted, including but not limited to, restricted share units and restricted share awards, collectively referred to as “share awards”. Share awards generally have the same expense characteristics under US GAAP and generally vest over a four-year period at a rate of 25% per annum.

Under the Retention Plan, the Company is authorized to issue shares of common stock to employees and non-employees up to ten percent (10%) of the total number of shares of common stock outstanding as of December 31, each year, on a fully diluted basis, while the Retention Plan remains in effect. During fiscal years 2026 and 2025, the Company granted 12.4 million and 9.5 million share awards under the Retention Plan, respectively.

The table below reflects the share award activity for the fiscal years ended June 30, 2026 and 2025:

 Schedule of Restricted Shares and Restricted Share Units Non-Vested

As awards are granted, for those awards subject solely to a service condition, stock-based compensation equivalent to the fair market value of the underlying common stock on the date of grant is expensed over the requisite service period, generally four years with a maximum contractual term of ten years, using the graded vesting attribution method as acceptable under ASC 718, “Compensation-Stock Compensation.” For awards that include performance conditions, compensation expense is recognized when achievement of the performance condition is considered probable and only for the portion of the requisite service period that has been rendered. The Company accounts for forfeitures as they occur. The fair value of share awards that vested during the fiscal year ended June 30, 2026 totaled $18.6 million.

The Company recognized total stock-based compensation expense of $46.5 million and $14.7 million for the fiscal years 2026 and 2025, respectively. Included in the $46.5 million recognized during fiscal year 2026 was $36.0 million related to executive performance-based awards. Included in the $14.7 million recognized during the fiscal year 2025 was $6.2 million related to executive performance-based awards.

For the fiscal years 2026 and 2025, total stock-based compensation expense included $25.1 million and $4.3 million, respectively, related to common share warrants awarded to employees of the Company.

As of June 30, 2026, there were approximately $27.8 million of unamortized expenses relating to outstanding equity compensation awards to be recognized over a remaining weighted-average period of 2.94 years.

The table below presents the stock-based compensation expense per respective line item of the consolidated statements of operations for the fiscal years ended June 30:

 Schedule of Stock-Based Compensation Expense

Executive officers and selected other key employees are eligible to receive common share performance-based awards, as determined by the board of directors. The payouts, in the form of share awards, vary based on the degree to which corporate operating objectives are met. These performance-based awards typically include a service-based requirement, which is generally four-years.