STOCK OPTIONS

6 Months Ended

Dec. 31, 2011

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 14 – STOCK OPTIONS

On January 3, 2010, the Company made a one-time grant of options to purchase an aggregate of 150,000 shares of common stock to certain officers and directors under the 2009 Equity Incentive Plan at an exercise price of $14.70 per share. Pursuant to the terms of the grant, one-third of the options vested on February 2, 2010, one-third of the options vested on December 31, 2010 as certain financial targets are achieved and the remaining one-third of the options vested on December 31, 2011 as certain financial targets were achieved. In addition, on January 3, 2010, the Company also made a grant of performance-based options to purchase an aggregate of 45,291 shares of common stock to certain officers and directors under the 2009 Equity Incentive Plan at an exercise price of $14.70 per share. Pursuant to the terms of the grant, the options automatically vest in three equal installments on September 30, 2010, 2011 and 2012 because the Company achieved both net sales and income from operations targets for the fiscal year ended June 30, 2010.

On February 7, 2010, the Company appointed a new independent director and issued to him performance-based options to purchase 10,000 shares of common stock under the 2009 Equity Incentive Plan at an exercise price of $14.02 per share. Pursuant to the terms of the grant, one-third of the options vested on March 8, 2010, one-third of the options vested on December 31, 2010 as certain financial targets are achieved and the remaining one-third of the options was forfeited on March 31, 2011.

On March 31, 2011, per compensation board resolution, the Company forfeited all those outstanding unvested options granted to current officers and directors and one former officer on March, 1 2010 and February 7, 2010 according to the 2009 Equity Incentive Plan.

The Company’s calculations are made using the Black-Scholes option-pricing model with the following weighted average assumptions: expected life of 2 years; 75.2%-75.6% stock price volatility; risk-free interest rate of 1.63% and no dividends during the expected term. Stock compensation expense is recognized based on awards expected to vest. The forfeitures are estimated at the time of grant and revised in subsequent periods pursuant to actual forfeitures, if it is different from those estimates. During the three months ended December 31, 2011 and 2010, the Company recognized stock-based compensation expense of $453,051 and $898,261, respectively. During the six months ended December 31, 2011 and 2010, the Company recognized stock-based compensation expense of $1,010,243 and $1,542,336, respectively.

Options outstanding as of December 31, 2011 and related weighted average price and intrinsic value are as follows:

				Weighted
				Average
	Number			Exercise		Aggregate
	of Shares			Price		Intrinsic Value
Outstanding, June 30, 2010		195,291		$	14.67
Granted		—			—
Forfeited/Canceled		(80,192	)		14.67-
Exercised		—
Outstanding, June 30, 2011		115,099		$	14.66	$	—
Granted		—			—
Forfeited/Canceled		—
Exercised		—
Outstanding, December 31, 2011		115,099		$	14.66	$	—
Exercisable, December 31, 2011		115,099		$	14.66	$	—

The following table summarizes the options outstanding as of December 31, 2011:

Options outstanding
					Weighted
			Weighted		Average
	Number		Average		Remaining
Range of	Outstanding as of		Exercise		Contractual Life
Exercise Price	December 31, 2011		Price		(Years)
14.02-14.70		115,099		14.66		0.25

The following table summarizes the options exercisable as of December 31, 2011:

Options Exercisable
					Weighted
			Weighted		Average
	Number		Average		Remaining
Range of	Outstanding as of		Exercise		Contractual Life
Exercise Price	December 31, 2011		Price		(Years)
14.02-14.70		115,099		14.66		0.25