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Note 12 - Equity Transactions and Stock-based Compensation
 12 Months Ended
Jun. 30, 2018
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, 2018,
the Company has
4,620,419
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 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, 2018
and
2017,
the Company incurred stock compensation expense of approximately
$14
and
$49,
respectively. As of
June 30, 2018,
the Company all stock compensation expense related to stock options issued as of
June 30, 2018
has been recorded.
 
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, 2018
and
2017:
 
 
 
   
Fiscal Year Ended
  
   
June 30,
  
   
2018
    
2017
  
                 
Anti-dilutive shares for stock options
    
150,000
      
313,100
  
Anti-dilutive shares for convertible note
    
-
      
-
  
Total anti-dilutive shares
    
150,000
      
313,100
  
 
The intrinsic value of options outstanding and exercisable at
June 30, 2018
and
2017
was
$180
and
$194,
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, 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
  
Granted
    
-
      
-
  
Exercised
    
-
      
-
  
Terminated
    
(118,333
 )    
0.15
  
Expired
    
(160,600
 )    
3.06
  
Outstanding as of June 30, 2018
    
2,439,250
     $
0.11
  
                 
Exercisable at June 30, 2017
    
2,506,683
     $
0.30
  
Exercisable at June 30, 2018
    
2,439,250
     $
0.11
  
 
The following table summarizes the range of exercise prices and weighted-average exercise prices for stock options outstanding and exercisable as of
June 30, 2018
under the Company’s stock option plans:
 
                                         
 Weighted 
                  
                                         
 Average 
                  
   
 
      
 
      
 
      
 
    
 Weighted 
    
 Remaining 
      
 
    
 Weighted 
  
 
 Range of 
      
 
    
 Average 
    
 Contractual 
      
 
    
 Average 
  
 
 Exercise Price 
    
 Outstanding 
    
 Exercise Price 
    
 Life (years) 
    
 Exercisable 
    
 Exercise Price 
  
                                                               
  $
0.09
      
-   
     $
0.10
      
1,846,000
     $
0.09
      
6.8
      
1,846,000
     $
0.09
  
  $
0.14
      
-   
     $
0.15
      
443,250
      
0.14
      
0.5
      
443,250
      
0.14
  
  $
0.23
      
-   
     $
0.25
      
150,000
      
0.24
      
8.4
      
150,000
      
0.24
  
  $
0.09
      
-  
     $
0.25
      
2,439,250
     $
0.11
      
5.6
      
2,439,250
     $
0.11