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%