4. STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2011

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

4.STOCK-BASED COMPENSATION

Stock-based compensation costs recognized during the quarters ended December 31, 2011 and 2010 amounted to $13,400 and $4,009, respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2011 - $12,500; 2010 - $833), and cost of goods sold (2011 - $900; 2010 - $3,176). Stock-based compensation costs recognized during  the six month periods ended December 31, 2011 and 2010 amounted to $17,900 and $7,185, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2011 - $12,500; 2010 - $833), and cost of goods sold (2011 - $5,400, 2010 - $6,352). No compensation has been capitalized because such amounts would have been immaterial.  No income tax provision was recorded in the second quarter or first six months of fiscal years 2012 or 2011 because of the availability of loss carryforwards to offset any anticipated taxable income in fiscal year 2012 and fiscal year 2011.

The following tables summarize stock option activity during the first six 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
Cancellations		(271	)		13.75
Outstanding at December 31, 2011		133,867		$	11.30	5.73 years

As of December 31, 2011, the unrecognized compensation costs related to options vesting will be primarily recognized over a period of approximately 1.75 years.

Information related to the stock options outstanding as of December 31, 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		9.54	$	0.27		13,334	$	0.27
$	1.35		1,200		7.90		1.35		1,200		1.35
$	1.25		1,200		6.91		1.25		1,200		1.25
$	6.25		1,600		4.92		6.25		1,600		6.25
$	7.75		1,200		5.91		7.75		1,200		7.75
$	11.50		800		3.92		11.50		800		11.50
$	13.75		50,507		4.36		13.75		50,507		13.75
$	20.75		37,360		3.46		20.75		37,360		20.75
$	1.25–$20.75		133,867		5.73	$	11.30		107,201	$	14.04

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 31, 2011 was $43,320 and $14,521, respectively.