4. STOCK-BASED COMPENSATION

9 Months Ended

Mar. 31, 2016

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

STOCK-BASED COMPENSATION

Stock-based compensation costs recognized during the quarters ended March 31, 2016 and 2015 amounted to $51,705 and $2,625 respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2016 - $33,721; 2015 - $0), research and development expenses (2016 - $9,316; 2015 - $2,625) and cost of goods sold (2016 - $8,668; 2015 - $0). Stock-based compensation costs recognized during  the nine month periods ended March 31, 2016 and 2015 amounted to $194,133 and $42,750, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2016 - $94,099; 2015 - $27,000), research and development expenses (2016 - $48,023, 2015 - $15,750) and cost of goods sold (2016 - $52,011, 2015 - $0). No compensation has been capitalized because such amounts would have been immaterial.

The following tables summarize stock option activity for the nine months ended March 31, 2016:

	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
Grants		60,000		0.48
Cancellations		(3,800)	$	3.00
Outstanding at March 31, 2016		1,135,279	$	1.37		7.83 years

Information related to the stock options outstanding as of March 31, 2016 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
$	0.48		60,000		10.00	$	0.48		20,000	$	0.48
$	0.73		316,000		9.14	$	0.73		165,000	$	0.73
$	0.73		330,000		9.14	$	0.73		132,915	$	0.73
$	0.90		35,000		8.28	$	0.90		23,334	$	0.90
$	0.90		30,000		8.28	$	0.90		30,000	$	0.90
$	1.20		207,800		5.92	$	1.20		207,800	$	1.20
$	0.90		9,000		7.76	$	0.90		9,000	$	0.90
$	0.85		9,000		6.76	$	0.85		9,000	$	0.85
$	0.55		44,000		5.92	$	0.55		44,000	$	0.55
$	0.27		40,000		5.29	$	0.27		40,000	$	0.27
$	1.35		1,200		3.65	$	1.35		1,200	$	1.35
$	1.25		1,200		2.65	$	1.25		1,200	$	1.25
$	6.25		1,600		0.66	$	6.25		1,600	$	6.25
$	7.75		1,200		1.66	$	7.75		1,200	$	7.75
$	13.75		49,279		0.11	$	13.75		49,279	$	13.75
$	0.27–$13.75		1,135,279		7.83	$	1.37		735,528	$	1.73

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of March 31, 2016 was $8,400.