Quarterly report pursuant to Section 13 or 15(d)

Incentive and Non-statutory Stock Option Plan

v3.5.0.2
Incentive and Non-statutory Stock Option Plan
 3 Months Ended
Sep. 30, 2016
Incentive And Non-statutory Stock Option Plan  
Incentive and Non-statutory Stock Option Plan

NOTE 14 - INCENTIVE AND NON-STATUTORY STOCK OPTION PLAN

 

Common stock purchase options and warrants consisted of the following:

 

OPTIONS:

 

    # of shares     Weighted Ave Exercise     Weighted Average Remaining Contractual Life (in years)     Aggregated Intrinsic Value  
                         
Outstanding and exercisable, June 30, 2016     610,133     $ 4.90       0.99     $ 799,030  
Granted     20,315     $ 4.75                  
Exercised     (20,315 )   $ 4.75                  
Expired / Cancelled     -                          
Outstanding and exercisable, September 30, 2016     610,133     $ 4.90       0.74     $ 1,013,097  

 

WARRANTS:

 

Outstanding and exercisable, June 30, 2016     163,124     $ 7.29       0.23     $ 9,303  
Granted / adjusted     -       -                  
Exercised     -       -                  
Expired     (152,049 )   $ 7.46                  
Outstanding and exercisable, September 30, 2016     11,075     $ 5.00       0.43     $ 13,955  

 

The following table summarizes information about stock options and warrants outstanding and exercisable at September 30, 2016.

 

Exercise Price   Number Outstanding and Exercisable     Weighted Average Remaining Contractual Life     Weighted Ave Exercise Price  
OPTIONS:                        
                         
$0.10 - $9.90     609,133       0.74     $ 4.88  
$10.00 - $19.90     1,000       0.80     $ 16.00  
Totals     610,133       0.74     $ 4.90  
                         
WARRANTS:                        
$5.00 - $7.50     11,075       0.43     $ 5.00  
Totals     11,075       0.43     $ 5.00  

  

The following table summarizes stock grants awarded as compensation:

 

    # of shares     Weighted Average Grant Date Fair Value ($)  
                 
Unvested, June 30, 2015     6,667     $ 6.00  
Granted     864,500     $ 5.91  
Vested     (240,939 )   $ 5.51  
Unvested, June 30, 2016     630,228     $ 6.07  
Granted     229,646     $ 5.92  
Canceled     (1,000 )   $ 5.09  
Vested     (148,594 )   $ 5.82  
Unvested, September 30, 2016     710,280     $ 6.07  

 

For the three months ended September 30, 2016 and 2015, the Company recorded compensation expense of $865,456 and $77,750 respectively. The compensation expense related to the unvested stock grants as of September 30, 2016 was $4,311,540 which will be recognized during the fiscal years 2017 through 2021.

 

OPTIONS

 

During the three months ended September 30, 2016, the Company granted 20,315 options to employees with exercise prices of $4.75 per share and expiration date of 3 months, vesting immediately. Using the Black-Scholes method to value the options, the Company recorded $21,804 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%
     
  ● Expected life – 3 months
     
  ● Expected volatility – 19.27%
     
  ● Expected dividend - 0%