Quarterly report pursuant to Section 13 or 15(d)

Incentive and Non-Statutory Stock Option Plan

v3.3.1.900
Incentive and Non-Statutory Stock Option Plan
 6 Months Ended
Dec. 31, 2015
Incentive And Non-statutory Stock Option Plan  
Incentive and Non-Statutory Stock Option Plan

NOTE 13 – INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN

 

Common stock purchase options and warrants consisted of the following:

 

 

    # of shares     Weighted Ave Exericse Price     Weighted Average Remaining Contractual Life (in years)     Aggregated Intrinsic Value  
OPTIONS:                         
Outstanding and exercisable, June 30, 2015     708,133     $ 6.84       1.22     $ 572,352  
Granted     152,024     $ 4.50                  
Exercised     (47,024 )   $ 4.14                  
Expired / Cancelled     (11,000 )   $ 23.41                  
Outstanding and exercisable, December 31, 2015     802,133     $ 6.33       0.69     $ 2,141,466  
                                 
WARRANTS:                                
Outstanding and exercisable, June 30, 2015     163,124     $ 7.29       1.22     $ -  
Granted / adjusted     -       -                  
Exercised     -       -                  
Expired     -       -                  
Outstanding and exercisable, December 31, 2015     163,124     $ 7.29       0.72     $ 30,567  

 

The following table summarizes information about stock options and warrants outstanding and exercisable at December 31, 2015.

 

Exercise Price     Number
Outstanding
and
Exercisable		     Weighted
Average
Remaining
Contractual Life		     Weighted
Ave
Exercise
Price		  
OPTIONS:                          
$0.10 - $9.90       739,133       0.71     $ 4.82  
$10.00 - $19.90       8,000       0.58     $ 17.69  
$20.00 - $29.90       55,000       0.42     $ 25.00  
Totals       802,133       0.69     $ 6.33  
                           
WARRANTS:                          
$5.00 - $7.50       163,124       0.72     $ 7.29  
Totals       163,124       0.72     $ 7.29  

 

The following table summarizes stock grants awarded as compensation:

 

    # of shares     Weighted
Average Grant
Date Fair Value ($)		  
             
Unvested, June 30, 2014     232,000     $ 3.88  
Granted     113,275     $ 3.26  
Vested     (338,608 )   $ 3.60  
Unvested, June 30, 2015     6,667     $ 6.00  
Granted     254,000     $ 5.06  
Vested     (63,500 )   $ 5.13  
Unvested, December 31, 2015     197,167     $ 5.07  

 

For the three and six months ended December 31, 2015, the Company recorded compensation expense of $248,268 and $326,019 respectively. For the three and six months ended December 31, 2014, the Company recorded compensation expense of $316,370 and $614,293 respectively. The compensation expense related to the unvested stock grants as of December 31, 2015 was $999,847 which will be recognized during the fiscal years of 2016 and 2017.

 

OPTIONS

 

During the six months ended December 31, 2015, the Company granted 152,024 options to employees with exercise prices of $4.14 to $4.92 per share and expiration date of 3 to 5 months, vesting immediately. Using the Black-Scholes method to value the options, the Company recorded $145,716 in compensation expense for these options in the accompanying condensed consolidated financial statements. The fair market value was calculated using the Black-Scholes option pricing model with the following assumptions:

 

  ● Risk-free interest rate - 0.01% - 0.02%
     
  ● Expected life – 3 months - 5 months
     
  ● Expected volatility – 41.65% - 47.89%
     
  ● Expected dividend - 0%