Stockholders’ Equity

9 Months Ended

Mar. 31, 2025

Note 5 – Stockholders’ Equity

Stock Warrants

A summary of the Company’s warrant activity and related information for the nine months ended March 31, 2025 is as follows:

Schedule of warrant activity
	Warrants		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)

Outstanding at June 30, 2024		28,841,323	$	0.080		2.61
Granted		20,200,000		0.015		4.76
Exercised		–		–		–
Expired		–		–		–
Outstanding at March 31, 2025 vested and exercisable		49,041,323	$	0.05		3.06

The intrinsic value of the outstanding warrants as of March 31, 2025 was $310,000 for warrants with an exercise price lower than the current market price on March 31, 2025.

In November 2024 and February 2025, the Company granted stock warrants to employees and non-employees to purchase a total of 15.2 million shares of common stock. The stock warrants are fully vested upon grant, exercisable at an average price of $0.015 per share and will expire in five years. The estimated fair value of these warrants for employees and non-employees amounted to $195,000.

The fair value of a stock warrants award is calculated on the grant date using the Black-Scholes option-pricing model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect as of the grant date. The expected dividend yield assumption is based on the Company’s expectation of dividend payouts and is assumed to be zero. The expected volatility is based on the historical volatility of the Company’s common stock, calculated utilizing a look-back period approximately equal to the expected life of the stock warrants granted. For warrants granted to employees, the expected life of the stock warrants is calculated as the mid-point between the vesting period and the contractual term (the “simplified method”), while the full contractual life for warrants granted to non-employee. The fair market value of the common stock is determined by reference to the quoted market price of the common stock on the grant date.

The following table summarizes additional information concerning warrants outstanding and exercisable at March 31, 2025.


		Warrants Outstanding						Warrants Exercisable
				Weighted		Weighted				Weighted
				Average		Average				Average
Exercise		Number		Remaining		Exercise		Number		Remaining
Price		of Shares		Life (Years)		Price		of Shares		Life (Years)

$	0.013		10,700,000		4.64	$	0.013		10,700,000		4.64
$	0.016		5,000,000		4.89		0.016		5,000,000		4.89
$	0.017		4,500,000		4.92		0.017		4,500,000		4.92
$	0.030		5,000,000		4.76		0.030		5,000,000		4.76
$	0.090		23,841,323		1.25		0.090		23,841,323		1.25

			49,041,323		3.06	$	0.053		49,041,323		3.06

- Definition

The entire disclosure for equity.

+ References

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+ Details

Cavitation Technologies, Inc. 10-Q