STOCK BASED COMPENSATION PLANS

6 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 7 – STOCK BASED COMPENSATION PLANS

The Company follows Accounting Standard Codification (ASC) Topic 718 “Compensation – Stock Compensation”, which addresses accounting for equity-based compensation arrangements, including employee stock options and restricted stock units. 

Please refer to Note 16 – Stock Based Compensation Plans in the Company's Form 10-K for the year ended June 30, 2014 for more detail information on the Company’s stock-based compensation plans.

During the three months ended December 31, 2014 and 2013, the Company recorded stock option compensation cost of $227,000 and $52,000, respectively, related to stock options that were previously issued. During the six months ended December 31, 2014 and 2013, the Company recorded stock option compensation cost of $464,000 and $103,000, respectively, related to stock options that were previously issued. As of December 31, 2014, there was a total of $1,013,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 4 years.

Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on analysis of the Company’s stock price history. The Company has selected to use the simplified method for estimating the expected term. The risk-free interest rate is based on the U.S. Treasury interest rates whose term is consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and does not anticipate issuing any dividends in the future.

The following table summarizes the stock options activity from June 30, 2013 through December 31, 2014:

		Number of		Weighted Average		Weighted Average	Aggregate
		Shares		Exercise Price		Remaining Life	Intrinsic Value
Oustanding at	July 1, 2013		222,000	$	14.98	6.89 years	$	1,353,000
Granted			160,000		18.96
Exercised			(15,000)		11.75
Forfeited			-		-
Exchanged			-		-
Oustanding at	June 30, 2014		367,000	$	16.85	7.71 years	$	953,000
Exercisable at	June 30, 2014		92,000	$	11.30	5.10 years	$	717,000
Vested and Expected to vest at	June 30, 2014		367,000	$	16.85	7.71 years	$	953,000
Oustanding at	July 1, 2014		367,000	$	16.85	7.71 years	$	731,000
Granted			-		-
Exercised			-		-
Forfeited			-		-
Exchanged			-		-
Oustanding at	December 31, 2014		367,000	$	16.85	7.20 years	$	731,000
Exercisable at	December 31, 2014		92,000	$	13.00	5.29 years	$	585,000
Vested and Expected to vest at	December 31, 2014		367,000	$	16.85	7.20 years	$	731,000

On July 1 of every year, as part of the Stock Compensation Plan for Non-employee Directors, each non-employee director received an automatic grant of a number of shares of Company’s Common Stock equal in value to $22,000 ($88,000 total recorded as stock compensation expense for the six months ended December 31, 2014 and 2013) based on 100% of the fair market value of the Company’s stock on the day of grant. During the six months ended December 31, 2014 and 2013, the four non-employee directors of the Company received a total grant of 4,608 and 4,192 shares of common stock.

As of December 31, 2014, there were no restricted stock units (RSUs) outstanding.