3. STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2015

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

STOCK-BASED COMPENSATION

Stock-based compensation costs recognized during the quarters ended December 31, 2015 and 2014 amounted to $42,105 and $13,125 respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2015 - $24,121; 2014 - $0), research and development expenses (2015 - $9,316, 2014 - $13,125) and cost of goods sold (2015 - $8,668; 2014 - $0). Stock-based compensation costs recognized during  the six month periods ended December 31, 2015 and 2014 amounted to $142,428 and $40,125, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2015 - $60,378; 2014 - $27,000), research and development expenses (2015 - $38,707, 2014 - $13,125) and cost of goods sold (2015 - $43,343, 2014 - $0). No compensation has been capitalized because such amounts would have been immaterial.

The following tables summarize stock option activity for the six months ended December 31, 2015:

	Options Outstanding
	Number of Shares		Weighted Average Exercise Price		Weighted Average Contractual Life
Outstanding at June 30, 2015		1,079,079	$	1.43		8.46 years
Cancellations		(3,800)	$	3.00
Outstanding at December 31, 2015		1,075,279	$	1.42		7.95 years

Information related to the stock options outstanding as of December 31, 2015 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
$	0.73		316,000		9.39	$	0.73		165,000	$	0.73
$	0.73		330,000		9.39	$	0.73		132,915	$	0.73
$	0.90		35,000		8.53	$	0.90		23,334	$	0.90
$	0.90		30,000		8.53	$	0.90		30,000	$	0.90
$	1.20		207,800		6.17	$	1.20		207,800	$	1.20
$	0.90		9,000		8.01	$	0.90		9,000	$	0.90
$	0.85		9,000		7.01	$	0.85		9,000	$	0.85
$	0.55		44,000		6.17	$	0.55		44,000	$	0.55
$	0.27		40,000		5.54	$	0.27		40,000	$	0.27
$	1.35		1,200		3.90	$	1.35		1,200	$	1.35
$	1.25		1,200		2.90	$	1.25		1,200	$	1.25
$	6.25		1,600		0.91	$	6.25		1,600	$	6.25
$	7.75		1,200		1.91	$	7.75		1,200	$	7.75
$	13.75		49,279		0.36	$	13.75		49,279	$	13.75
$	0.27–$13.75		1,075,279		7.96	$	1.42		715,528	$	1.77

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 31, 2015 was $21,280.