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Note 12 - Equity Transactions and Stock-based Compensation
 12 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
Note
1
2
. Equity Transactions
and Stock-Based Compensation
 
Stock Option Plan.
The Company has adopted a stock option plan for the granting of options or restricted shares to employees, officers, directors and consultants of the Company that originally provided for the purchase of up to
7,000,000
shares of common stock, at the discretion of the Board of Directors. Subsequent to the adoption, the Board of Directors and stockholders approved additional common stock shares aggregating
6,000,000
to be available for grant, for a total of
13,000,000
shares of common stock reserved for issuance under the Company’s
2001
Stock Option Plan, as amended (the "Plan"). Stock option grants
may
not
be priced less than the fair market value of the Company’s common stock at the date of grant. Options granted are generally for
ten
-year periods, except that incentive stock options granted to a
10%
stockholder (as defined) are limited to
five
-year terms.  As of
June 30, 2017,
the Company has
4,341,486
shares of common stock remaining under the Plan.
 
In
November 2016,
the Board of Directors authorized
200,000
stock options which were issued to the Company
’s non-officer directors with an exercise price ranging from
$0.23
to
$0.25,
with
42%
vesting immediately and the remaining
58%
vesting over
seven
(
7
) months, with a term of
ten
years (
50,000
stock options had a term of
three
(
3
) months due to the resignation of the optionee).  During the fiscal year ended
June 30, 2017,
the Company incurred stock compensation expense of approximately
$33
on these options. 
 
The Company used the following assumptions to calculate the fair value of approximately
$34
of the stock option grants using the Black-Scholes option pricing model on the grant date:
 
 
Risk Free Interest Rate
0.44%
    
to
    
2.34%
Volatility
66.9%
    
to
    
112.3%
Term
3 months
    
to
    
10 years
Dividend Rate
 
    
0.00%
    
 
Closing Price of Common Stock
 
   $
0.23 
    
 
 
The Company calculates expected volatility for a stock-based grant based on historic daily stock price observations of
its common stock during the period immediately preceding the grant that is equal in length to the expected term of the grant. The expected term of the options is estimated based on the Company’s historical exercise rate and forfeiture rates are estimated based on employment termination experience. The risk free interest rate is based on U.S. Treasury yields for securities in effect at the time of grants with terms approximating the term of the grants. The assumptions used in the Black-Scholes option valuation model are highly subjective, and can materially affect the resulting valuations.
 
During the fiscal year ended
June 30, 2017
and
2016,
the Company incurred stock compensation expense of approximately
$49
and
$31,
respectively. The Company expects to record additional stock compensation expense of approximately
$15
related to unvested stock options issued under the Plan over the estimated weighted average remaining vesting period of less than
one
year.
 
The following options and potentially dilutive shares for convertible notes payable
(see Note
5.
Senior Credit Facility, Subordinated Convertible Note, net - CD Financial, LLC and other Long Term Debt) were
not
included in the computation of weighted average diluted common shares outstanding as the effect of doing so would be anti-dilutive for fiscal years ended
June 30, 2017
and
2016:
 
   
Fiscal Year Ended
  
   
June 30,
  
   
2017
    
2016
  
                 
Anti-dilutive shares for stock options
    
313,100
      
694,950
  
Anti-diluative shares for convertible note    
-
      
8,230,769
  
Total anti-dilutive shares
    
313,100
      
8,925,719
  
 
The intrinsic value of options outstanding and exercisable at
June 30, 2017
and
2016
was
$194
and
$31,
respectively.
 
A summary of the Company
’s stock option activity, and related information for the years ended
June 30,
follows:
 
           
Weighted
  
           
Average
  
           
Exercise
  
   
Options
    
Price
  
                 
Outstanding as of July 1, 2015
    
3,072,950
     $
0.52
  
Granted
    
-
      
-
  
Exercised
    
-
      
-
  
Terminated
    
(80,000
 )    
0.17
  
Expired
    
(122,000
 )    
3.63
  
Outstanding as of June 30, 2016
    
2,870,950
      
0.40
  
Granted
    
200,000
      
0.24
  
Exercised
    
(30,000
 )    
0.09
  
Terminated
    
(271,667
 )    
0.24
  
Expired
    
(51,100
 )    
6.82
  
Outstanding as of June 30, 2017
    
2,718,183
     $
0.29
  
                 
Exercisable at June 30, 2016
    
2,383,617
     $
0.46
  
Exercisable at June 30, 2017
    
2,506,683
     $
0.30
  
 
The following table summarizes the range of exercise prices and weighted-average exercise prices for stock options outstanding and exercisable as of
June 30, 2017
under the Company’s stock option plans:
 
                 
Weighted
            
             Weighted    
Average
            Weighted
           
 Average
    
Remaining 
          
 
Average 
 
Range of
         
Exercise 
    
 
Contractual 
          
 
Exercise 
 
Exercise Price
    
 
Outstanding 
    
Price
    
Life (years)
    
 
Exercisable 
    
 Price 
$0.09
-
$0.10
    
1,956,333
    
$ 0.09
    
7.8
    
1,744,833
    
$ 0.09
$0.14
-
$0.15
    
448,750
    
0.14
    
1.5
    
448,750
    
0.14
$0.23
-
$0.25
    
150,000
    
0.24
    
9.4
    
150,000
    
0.24
$3.05
-
$3.05
    
158,600
    
3.05
    
0.4
    
158,600
    
3.05
$3.36
-
$3.36
    
4,500
    
3.36
    
0.4
    
4,500
    
3.36
$0.09
-
$3.36
    
2,718,183
    
$ 0.29
    
5.6
    
2,506,683
    
$ 0.30