9. LONG-TERM INCENTIVE PLAN AWARDS

12 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

LONG-TERM INCENTIVE PLAN AWARDS

NOTE 9 - LONG-TERM INCENTIVE PLAN AWARDS

We apply the provisions of ASC 718, “Compensation - Stock Compensation,” using a modified prospective application, and the Black-Scholes model to value stock options. Under this application, we record compensation expense for all awards granted. Compensation costs will be recognized over the period that an employee provides service in exchange for the award, i.e. the vesting period.

We adopted the 2009 Stock Incentive Plan (“2009 Plan”) on June 11, 2009, which provided for the grant of incentive stock options and non-qualified stock options to our employees and directors. Options granted under the 2009 Plan generally have a term of ten years and generally vest and become exercisable at the rate of 33% after one year and 33% on the second and third anniversaries of the option grant dates. Historically, some stock option grants have included shorter vesting periods ranging from one to two years.

The estimated forfeiture rate considers historical turnover rates stratified into employee pools in comparison with an overall employee turnover rate, as well as expectations about the future. We periodically revise the estimated forfeiture rate in subsequent periods if actual forfeitures differ from those estimates. There was no compensation expense recorded under this method for the year ended June 30, 2020.

A summary of the status of our stock options is presented below:

						Weighted-
						Average
				Weighted-		Remaining
				Average		Contractual		Aggregate
				Exercise		Life		Intrinsic
Options	Shares			Price		(In Years)		Value
Outstanding as of June 30, 2018		299,000		$	1.04		2.75	$	241,220
Granted		–			–		–		–
Exercised		–			–		–		–
Cancelled		–			–		–		–
Forfeited or Expired		–			–		–		–
Outstanding as of June 30, 2019		299,000		$	1.04		2.75	$	241,220
Granted		–			–		–		–
Exercised		(35,709	)		0.93		–		197,114
Cancelled		–			–		–		–
Forfeited or Expired		(12,000	)		1.35		–		66,240
Outstanding as of June 30, 2020		251,291		$	1.05		1.95	$	1,124,525
Exercisable as of June 30, 2020		251,291		$	1.05		1.95	$	1,124,525

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based upon the Company’s closing stock price of $5.52 as of June 30, 2020, which would have been received by the option holders had all option holders exercised their options as of that date. The weighted-average grant-date fair value of stock options outstanding as of June 30, 2020 in the amount of 251,291 shares was $0.93 per share.

As of June 30, 2020, there was no unrecognized compensation cost related to non-vested stock options granted.