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STOCK BASED COMPENSATION PLANS
 6 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
NOTE 9 – 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, 2018 for more detailed information on the Company’s stock-based compensation plans.
 
During the three months ended December 31, 2018 and 2017, the Company recorded stock option compensation cost of $29,000 and $60,000, respectively, related to stock options that were previously issued. During the six months ended December 31, 2018 and 2017, the Company recorded stock option compensation cost of $59,000 and $122,000, respectively, related to stock options that were previously issued. As of December 31, 2018, there was a total of $61,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 3.17 years.
 
In December 2018, the Company’s President and Chief Executive Officer (CEO), John V. Winfield exercised 26,805 vested Incentive Stock Options by surrendering 17,439 shares of the Company’s common stock at fair value as payment of the exercise price, resulting in a net issuance to him of 9,366 shares. No additional compensation expense was recorded related to the issuance.
 
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, 2017 through December 31, 2018:
 
 
 
 
 
Number of
 
 
Weighted Average
 
 
Weighted Average
 
Aggregate
 
 
 
 
 
Shares
 
 
Exercise Price
 
 
Remaining Life
 
Intrinsic Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oustanding at
 
July 1, 2017
 
 
368,000
 
 
$
17.21
 
 
5.17 years
 
$
3,046,000
 
Granted
 
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
Exercised
 
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
Forfeited
 
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
Exchanged
 
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
Outstanding at
 
June 30, 2018
 
 
368,000
 
 
$
17.21
 
 
4.17 years
 
$
3,505,000
 
Exercisable at
 
June 30, 2018
 
 
318,000
 
 
$
16.47
 
 
3.79 years
 
$
3,257,000
 
Vested and Expected to vest at
 
June 30, 2018
 
 
368,000
 
 
$
17.21
 
 
4.17 years
 
$
3,505,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oustanding at
 
July 1, 2018
 
 
368,000
 
 
$
17.21
 
 
4.17 years
 
$
3,505,000
 
Granted
 
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
Exercised
 
 
 
 
(26,805
)
 
 
20.52
 
 
 
 
 
 
 
Forfeited
 
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
Exchanged
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding at
 
December 31, 2018
 
 
341,195
 
 
$
16.95
 
 
3.57 years
 
$
5,195,000
 
Exercisable at
 
December 31, 2018
 
 
326,795
 
 
$
16.50
 
 
3.36 years
 
$
5,125,000
 
Vested and Expected to vest at
 
December 31, 2018
 
 
341,195
 
 
$
16.95
 
 
3.57 years
 
$
5,195,000