STOCK BASED COMPENSATION PLANS

9 Months Ended

Mar. 31, 2022

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, 2021 for more detailed information on the Company’s stock-based compensation plans.

During the nine months ended March 31, 2022 and 2021, the Company recorded stock option compensation cost of $4,000 and $12,000, respectively, related to stock options that were previously issued. As of March 31, 2022, all compensation related to stock options have been recognized.

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, 2020 to March 31, 2022:

					Weighted		Weighted	Aggregate
		Number of Shares			Average Exercise Price		Average Remaining Life	Intrinsic Value
Oustanding at	July 1, 2020		341,195		$	16.95	3.83 years	$	3,271,000
Granted			-			-
Exercised			-			-
Forfeited			-			-
Exchanged			-			-
Outstanding at	June 30, 2021		341,195		$	16.95	2.83 years	$	8,890,000
Exercisable at	June 30, 2021		337,595		$	16.84	2.80 years	$	8,833,000
Vested and Expected to vest at	June 30, 2021		341,195		$	16.95	2.83 years	$	8,890,000
Oustanding at	July 1, 2021		341,195		$	16.95	2.83 years	$	8,890,000
Granted			-			-
Exercised			(90,000	)		19.77			2,784,000
Forfeited			-			-
Exchanged			-			-
Outstanding at	March 31, 2022		251,195		$	15.95	2.85 years	$	9,057,000
Exercisable at	March 31, 2022		251,195		$	15.95	2.85 years	$	9,057,000
Vested and Expected to vest at	March 31, 2022		251,195		$	15.95	2.85 years	$	9,057,000

On January 21, 2022, Mr. Winfield exercised 90,000 of his vested stock options by surrendering 35,094 shares of the Company’s common stock at fair value as payment of the exercise price, resulting in a net issuance to him of 54,906 shares. No additional compensation expense was recorded related to the issuance.