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Stock Based Compensation Plans
 3 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock Based Compensation Plans

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, 2019 for more detailed information on the Company’s stock-based compensation plans.

 

During the three months ended September 30, 2019 and 2018, the Company recorded stock option compensation cost of $8,000 and $30,000, respectively, related to stock options that were previously issued. As of September 30, 2019, there was a total of $36,000 of unamortized compensation related to stock options which is expected to be recognized over the weighted-average period of 2.42 years.

 

In December 2018, the Company’s President and Chief Executive Officer, 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, 2018 through September 30, 2019:

 

   Number of   Weighted Average   Weighted Average   Aggregate 
   Shares   Exercise Price   Remaining Life   Intrinsic Value 
                 
Oustanding at July 1, 2018    368,000   $17.21    4.17   $3,505,000 
Granted    -    -           
Exercised   (26,805)   20.52           
Forfeited    -    -           
Exchanged    -    -           
Outstanding at June 30, 2019    341,195   $16.95    3.07 years   $4,680,000 
Exercisable at June 30, 2019    330,395   $16.62    2.92 years   $4,643,000 
Vested and Expected to vest at June 30, 2019    341,195   $16.95    3.07 years   $4,680,000 
                     
Oustanding at July 1, 2019    341,195   $16.95    3.07 years   $4,680,000 
Granted    -    -           
Exercised    -    -           
Forfeited    -    -           
Exchanged   -    -           
Outstanding at September 30, 2019    341,195   $16.95    2.82 years   $4,369,000 
Exercisable at September 30, 2019    330,395   $16.62    2.67 years   $4,342,000 
Vested and Expected to vest at September 30, 2019    341,195   $16.95    2.82 years   $4,369,000