v3.26.3
Note 6 - Stockholders' Equity
12 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Equity [Text Block]

NOTE 6— STOCKHOLDERS’ EQUITY

 

In 2019, the Company adopted the 2019 Omnibus Incentive Plan (the “Plan”). The Plan, as amended, provides for the issuance of stock-based awards to employees. As of June 30, 2026, the Plan provided for the issuance of up to 1,500,000 stock-based awards available to grant under at June 30, 2026.  According to the plan, all stock-based awards expire 10 years from date of grant.

 

In July 2021, the Company granted options to non-employee directors to purchase an aggregate of 150,000 shares of its common stock at an exercise price of $3.00 per share. The options vest one year from the date of grant.

 

On May 26, 2023, the Board of Directors cancelled 150,000 options consisting of 50,000 options each to John Stiska, Katherine Crothall and Scott Anderson with an exercise price of $3.00. In its place, the Board granted 150,000 options consisting of 50,000 options each with an exercise price of $1.10 vesting immediately to John Stiska, Katherine Crothall and Scott Anderson. In addition to the director options, the Board granted CFO William Greene 100,000 options with an exercise price of $1.10 with 25% vesting immediately the remainder vesting at 25% per year thereafter. These options, which were the only options granted during the year ended June 30, 2026 had a grant-date fair value of $1.10 per share. On March 25, 2025, the Board re-priced the $1.10 options to $0.65 per share which resulted in an incremental stock-based compensation charge of $11,000 in the year ended June 30, 2025.

 

On October 30, 2024, and as part of Francis Godfrey’s appointment as the Company’s President and Chief Operating Officer, the Board granted Francis Godfrey 200,000 options with an exercise price of $0.65 with 25% vesting immediately and the remainder vesting at 25% per year thereafter. 

 

On April 27, 2026, and as part of Bart Bedard's appointment as the Company’s Chief Financial Officer, the Company granted Bart Bedard 75,000 options with an exercise price of $0.69 with 25% vesting immediately with 75% of the Options vesting in equal annual installments over three years.  None of these potentially dilutive securities were included in the computation of diluted earnings per share as their impact would be anti-dilutive.

 

Stock compensation expense was $40,000 and $70,000 for the years ended June 30, 2026 and 2025, respectively,

 

The estimated fair value of each option award granted was determined on the date of grant using the Black-Scholes option valuation model. The following weighted average assumptions were used for the Board of Director and Officer option grants during the periods June 30, 2026 and 2025: 

 

  

April 27, 2026

  

March 25, 2025

 
  

Options

  

Options

 
         

Risk-free interest rate

  4.29%  4.35%

Expected volatility

  89.9%  83.50%

Dividend yield

  —%  —%

Expected option term in years

  6.3   2.4 

 

The risk-free interest rates are based on the implied yield available on U.S. Treasury constant maturities with remaining terms equivalent to the respective expected terms of the options. Expected volatility is based on the historical volatility of the Company's common stock. The Company estimates the expected term for stock options awarded to employees, non-employees, officers and directors using the simplified method in accordance with ASC Topic 718, Stock Compensation, because the Company does not have sufficient relevant historical information to develop reasonable expectations about future exercise patterns. In the future, as the Company gains historical data for the actual term over which stock options are held, the expected term may change, which could substantially change the grant-date fair value of future stock option awards, and, consequently, compensation of future grants.

 

A summary of the status of the Company’s stock options as of June 30, 2026 and 2025 and changes during the years ended June 30, 2026 and 2025 are presented below.

 

      

Wtd. Avg.

 
      

Exercise

 
  

Options

  

Price

 

Balance, July 1, 2025

  450,000  $0.65 

Granted during the period

  75,000   0.69 

Exercised during the period

  —   — 

Cancelled during the period

  —   — 

Balance, June 30, 2026

  525,000  $0.66 

 

A summary of the status of the Company’s stock options as of June 30, 2025 and 2024 and changes during the years ended June 30, 2025 and 2024 are presented below.

 

      

Wtd. Avg.

 
      

Exercise

 
  

Options

  

Price

 

Balance, July 1, 2024

  250,000  $1.10 

Granted during the period

  450,000   0.65 

Exercised during the period

  —   — 

Canceled during the period

  (250,000)  1.10 

Balance, June 30, 2025

  450,000  $0.65 

 

Future option vesting expense will be $75,000 in the year ended June 30, 2027, and $41,667 in the year ended 2028 and $3,125 in the year ended 2029, respectively.

 

The following table summarizes the outstanding stock options at June 30, 2026: 

 

Range of

  

Number

  

Number

  

Wtd. Avg, Life

  

Wtd. Avg.

 

Exercise Price

  

Outstanding

  

Exercisable

  

(in years)

  

Exercise Price

 
 $0.65 - $0.69   525,000   398,438   7.87  $0.65 

 

 

There was no warrant activity during the year ended June 30, 2026.