Note 13. Stock-Based Compensation

The Company maintains the 2019 Equity Incentive Plan (the “2019 Plan”), which provides for the grant of stock-based awards to employees, officers, directors, consultants, and other service providers. The 2019 Plan is administered by the Compensation Committee of the Board of Directors (or such other committee designated by the Board of Directors), which has authority to determine the recipients and terms and conditions of awards granted under the 2019 Plan. Awards may include stock options, restricted stock units, and other stock-based awards authorized under the 2019 Plan. As of June 30, 2026, 25,000,000 shares of the Company’s common stock were authorized for issuance under the 2019 Plan.

Stock Options

A summary of stock option activity for the years ended June 30, 2026 and 2025 is as follows:

The average fair value of stock options granted was estimated to be $4.18 per share for the period ended June 30, 2026, and the closing stock price on June 30, 2026, was $0.78 per common share.

The average fair value of stock options granted was estimated to be $2.36 per share for the period ended June 30, 2025, and the closing stock price on June 30, 2025, was $2.98 per common share.

Stock-based compensation expense attributable to stock options was approximately $124,514 and $1,409,916 for the years ended June 30, 2026 and 2025, respectively. As of June 30, 2026, there was approximately $56,196 unrecognized compensation expense related to unvested stock options outstanding, and the weighted average vesting period for those options was approximately 0.43 years.

The value of each grant is estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the years ended June 30, 2026 and 2025:

The basis for the above assumptions are as follows: the dividend rate is based upon the Company’s history of dividends; the risk-free interest rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant; the expected term was calculated based on the Company’s historical pattern of options granted and the period of time they are expected to be outstanding; and expected volatility was calculated based upon historical trends in the Company’s stock prices.

Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based on historical experience of forfeitures, the Company estimated forfeitures at 0% for each of the years ended June 30, 2026 and 2025. In the year ended June 30, 2025, in light of the 1-20 reverse split, certain grants were cancelled and re-issued. The estimate of forfeitures relating to terminations is still 0%.

There were 19,046,056 shares available for issuance as of June 30, 2026, under the 2019 Plan as amended. The 2019 Plan contains an “evergreen” provision pursuant to which shares authorized for issuance may be automatically replenished.

Restricted Stock Units

Stock-based compensation from restricted stock units (“RSUs”) was approximately $17,049,029 and $696,946 for the years ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, there was approximately $3,982,176 of unrecognized compensation expense related to 1,494,337 RSUs. The weighted-average term remaining on the unvested shares was approximately 0.45 years.

At June 30, 2026, there were approximately 3,132,915 vested RSUs that are included in the 4,627,252 RSUs outstanding above as they are not included in the Company’s issued and outstanding common stock.

The components of stock-based compensation for the years ended June 30, 2026 and 2025 are as follows:

As a result of the termination of the Company’s Asset Management Agreement, the Company expensed all remaining unamortized costs associated with the warrants granted to the asset manager, which was approximately $4.7 million for the year ended June 30, 2026. No such expense was recognized during the year ended June 30, 2025. These expenses are included within Stock-based compensation in the Consolidated Statements of Operations.