NOTE 8 : STOCK-BASED COMPENSATION

The Company adopted an Incentive Stock Plan on April 18, 2021. This plan is intended to provide incentives which will attract and retain highly competent persons at all levels as employees of the Company, as well as independent contractors providing consulting or advisory services to the Company, by providing them opportunities to acquire the Company’s common stock or to receive monetary payments based on the value of such shares pursuant to Awards issued. While the plan terminates 10 years after the adoption date, issued options have their own schedule of termination. Options to acquire shares of common stock may be granted at no less than fair market value on the date of grant. Upon exercise, shares of new common stock are issued by the Company.

The 2,222 stock options outstanding as of June 30, 2025 expired unexercised during the year ended June 30, 2026 in accordance with their original terms. No options were outstanding as of June 30, 2026.

Under the 2021 Stock Incentive Plan, no options to purchase shares were issued during the years ended June 30, 2026 and 2025. Upon exercise, shares of new common stock are issued by the Company.

For the years ended June 30, 2026 and 2025, the Company recognized $0 of non-cash stock option compensation expense, as no stock options were granted, exercised, or outstanding-and-vesting during either period. As of June 30, 2026, the Company had no unrecognized pre-tax non-cash stock option compensation expense. When options are granted, the Company estimates their fair value using a binomial option pricing model, uses straight-line amortization of compensation expense over the requisite service or vesting period of the grant, and recognizes forfeitures as they occur.

A summary of the status of the Company’s outstanding stock options As of June 30, 2026 and 2025 and changes during the periods ending on that date is as follows:

Restricted Stock Awards

See Note 7 for the restricted stock awards granted during fiscal 2026 and 2025 and the related expense.

A summary of the Company’s restricted stock activity for the year ended June 30, 2026 and 2025 is presented in the following table:

Unrecognized compensation expense related to outstanding restricted stock awards as of June 30, 2026 was $0.

All restricted stock awards granted during the years ended June 30, 2026 and 2025 vested immediately upon grant; accordingly, no forfeiture-rate assumption was applied in measuring compensation cost for those awards, and no unvested awards were outstanding at either year-end.