STOCK BASED COMPENSATION PLANS

3 Months Ended

Sep. 30, 2015

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, 2015 for more detail information on the Company’s stock-based compensation plans.

During the three months ended September 30, 2015 and 2014, the Company recorded stock option compensation cost of $123,000 and $237,000, respectively, related to stock options that were previously issued. As of September 30, 2015, there was a total of $626,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 3.25 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 July 1, 2014 through September 30, 2015:

		Number of		Weighted Average		Weighted Average		Aggregate
		Shares		Exercise Price		Remaining Life		Intrinsic Value
Oustanding at	July 1, 2014		367,000	$	16.85		7.71 years	$	953,000
Granted			-		-
Exercised			(2,400)		18.00
Forfeited			(5,000)		24.92
Exchanged			(9,600)		18.00
Oustanding at	June 30, 2015		350,000	$	16.70		6.95 years	$	939,000
Exercisable at	June 30, 2015		126,639	$	12.06		6.46 years	$	939,000
Vested and Expected to vest at	June 30, 2015		350,000	$	16.70		6.95 years	$	939,000
Oustanding at	July 1, 2015		350,000	$	16.70		6.95 years	$	939,000
Granted			-		-
Exercised			-		-
Forfeited			-		-
Exchanged			-		-
Oustanding at	September 30, 2015		350,000	$	16.70		6.69 years	$	3,838,000
Exercisable at	September 30, 2015		218,000	$	26.80		6.06 years	$	2,719,000
Vested and Expected to vest at	September 30, 2015		350,000	$	16.70		6.69 years	$	3,838,000

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 three months ended September 30, 2015 and 2014) based on 100% of the fair market value of the Company’s stock on the day of grant. During the three months ended September 30, 2015 and 2014, the four non-employee directors of the Company received a total grant of 4,520 and 4,608 shares of common stock.