3. STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2014

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

3. STOCK-BASED COMPENSATION

Stock-based compensation costs recognized during the quarters ended March 31, 2014 and 2013 amounted to $41,708 and $52,898, respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2014 - $40,150; 2013 - $50,440), research and development expenses (2014 - $550, 2013 - $550) and cost of goods sold (2014 - $1,008; 2013 - $1,908). Stock-based compensation costs recognized during the nine months ended March 31, 2014 and 2013 amounted to $108,924 and $73,913, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2014 - $104,250; 2013 - $66,539), research and development expenses (2014 - $1,650, 2013 - $1,650) and cost of goods sold (2014 - $3,024, 2013 - $5,724). No compensation has been capitalized because such amounts would have been immaterial.  No income tax provision was recorded in the third quarter or first nine months of fiscal years 2014 or 2013 because of the losses generated or the availability of loss carryforwards to offset any anticipated taxable income.

There were 9,000 stock options granted during the quarter ended March 31, 2014 with an exercise price of $0.90.

As of March 31, 2014, the unrecognized compensation costs related to options vesting of $32,109 will be recognized over a period of approximately 0.25 years.

Information related to the stock options outstanding as of March 31, 2014 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
$	0.90		9,000		9.76	$	0.90		9,000
$	0.85		9,000		8.76	$	0.85		9,000	$	0.85
$	1.20		207,800		7.93	$	1.20		182,800	$	1.20
$	0.55		49,500		7.87	$	0.55		34,667	$	0.55
$	0.27		40,000		7.29	$	0.27		40,000	$	0.27
$	1.35		1,200		5.65	$	1.35		1,200	$	1.35
$	1.25		1,200		4.66	$	1.25		1,200	$	1.25
$	6.25		1,600		2.67	$	6.25		1,600	$	6.25
$	7.75		1,200		3.66	$	7.75		1,200	$	7.75
$	11.50		800		1.67	$	11.50		800	$	11.50
$	13.75		50,427		2.11	$	13.75		50,427	$	13.75
$	20.75		37,360		1.21	$	20.75		37,360	$	20.75
$	0.27–$20.75		409,087		6.31	$	4.41		369,254	$	5.04

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of March 31, 2014 was $53,725 and $47,050, respectively.

Included in current liabilities at March 31, 2014 is approximately $83,900 that is expected to be paid through the issuance of stock.