4. STOCK-BASED COMPENSATION

3 Months Ended

Sep. 30, 2011

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

4.  STOCK-BASED COMPENSATION

Stock-based compensation costs recognized during each of the three month periods ended September 30, 2011 and 2010 amounted to $12,000 and $3,176, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2011 - $7,500; 2010 - $0), and cost of goods sold (2011 - $4,500, 2010 - $3,176). No compensation has been capitalized because such amounts would have been immaterial. There was no net income tax benefit recognized related to such compensation for the three month periods ended September 30, 2011 and 2010  because of (1) the  availability of loss carryforwards to offset any anticipated taxable income in fiscal year 2012, and (2) the loss incurred in the first quarter of fiscal year 2011.

 The following tables summarize stock option activity during the first three months of fiscal year 2012:

	Options Outstanding
	Number of Shares		Weighted Average Exercise Price		Weighted Average Contractual Life
Outstanding at June 30, 2011		94,138	$	15.97	4.50 years
Grants		40,000		0.27
Outstanding at September 30, 2011		134,138	$	11.30	5.98 years

As of September 30, 2011, the unrecognized compensation costs related to options vesting will be primarily recognized over a period of approximately two years.

Information related to the stock options outstanding as of September 30, 2011 is as follows:

Range of Exercise Prices		Number of Shares		Weighted-Average Remaining Contractual Life (years)		Weighted-Average Exercise Price		Exercisable Number of Shares		Exercisable Weighted-Average Exercise Price
$	0.27		40,000		9.79	$	0.27		13,334	$	0.27
$	1.35		1,200		8.16		1.35		1,200		1.35
$	1.25		1,200		7.16		1.25		1,200		1.25
$	6.25		1,600		5.17		6.25		1,600		6.25
$	7.75		1,200		6.16		7.75		1,200		7.75
$	11.50		800		4.17		11.50		800		11.50
$	13.75		50,778		4.61		13.75		50,778		13.75
$	20.75		37,360		3.71		20.75		37,360		20.75
$	1.25–$20.75		134,138		5.98	$	11.30		107,472	$	14.04

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of September 30, 2011 was $39,200 and $13,067, respectively.