STOCK BASED COMPENSATION PLANS

9 Months Ended

Mar. 31, 2017

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, 2016 for more detail information on the Company’s stock-based compensation plans.

In March 2017, the Compensation Committee awarded 18,000 stock options to the Company’s Vice President of Real Estate, David C. Gonzalez, to purchase up to 18,000 shares of common stock. The exercise price of the options is $27.30 which is the fair value of the Company’s Common Stock as reported on NASDAQ on March 2, 2017. The options expire ten years from the date of grant. Pursuant to the time vesting requirements, the options vest over a period of five years, with 3,600 options vesting upon each one year anniversary of the date of grant.

  

For the three months ended March 31, 2017 and 2016, the Company recorded stock option compensation cost of $66,000 and $77,000, respectively, related to stock options that were previously issued. For the nine months ended March 31, 2017 and 2016, the Company recorded stock option compensation cost of $206,000 and $319,000, respectively, related to stock options that were previously issued.

As of March 31, 2017, there was a total of $366,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 3.26 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, 2016 through March 31, 2017:

		Number of		Weighted Average		Weighted Average		Aggregate
		Shares		Exercise Price		Remaining Life		Intrinsic Value
Oustanding at	July 1, 2015		350,000	$	16.70		6.95 years	$	939,000
Granted			-		-		-		-
Exercised			-		-		-		-
Forfeited			-		-		-		-
Exchanged			-		-		-		-
Oustanding at	June 30, 2016		350,000	$	16.70		5.95 years	$	3,082,000
Exercisable at	June 30, 2016		236,000	$	15.54		5.33 years	$	2,351,000
Vested and Expected to vest at	June 30, 2016		350,000	$	16.70		5.95 years	$	3,082,000
Oustanding at	July 1, 2016		350,000	$	16.70		5.95 years	$	3,082,000
Granted			18,000		27.30		9.92 years		-
Exercised			-		-		-		-
Forfeited			-		-		-		-
Exchanged			-		-		-		-
Oustanding at	March 31, 2017		368,000	$	17.21		5.42 years	$	2,977,000
Exercisable at	March 31, 2017		286,000	$	16.19		5.47 years	$	2,577,000
Vested and Expected to vest at	March 31, 2017		368,000	$	17.21		5.42 years	$	2,977,000