4. STOCK-BASED COMPENSATION

6 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

4. STOCK-BASED COMPENSATION

The following table summarizes stock-based compensation expense for the three and six months ended December 31, 2019 and 2018:

	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
Cost of Goods Sold	$	11,233	$	–	$	22,466	$	–
Research and Development		12,683		2,411		25,368		4,822
Selling, General and Administrative		250,790		7,817		303,377		348,390
Stock Based Compensation Expense	$	274,706	$	10,228	$	351,211	$	353,212

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, 2019:

	Options Outstanding
	Number of Shares			Weighted Average Exercise Price	Weighted Average Contractual Life
Outstanding at June 30, 2019	1,819,500		$	0.87	7.05 years
Granted	270,000			–	–
Exercised	(27,500	)		–	–
Expired or Cancelled	(4,200	)		–	–
Outstanding at December 31, 2019	2,057,800		$	0.94	7.00 years

Information related to the stock options outstanding as of December 31, 2019 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		1.54	$	0.27		40,000	$	0.27
$	0.48		60,000		6.25	$	0.48		60,000	$	0.48
$	0.50		100,000		5.47	$	0.50		100,000	$	0.50
$	0.55		44,000		4.21	$	0.55		44,000	$	0.55
$	0.64		25,000		7.86	$	0.64		25,000	$	0.64
$	0.70		100,000		8.59	$	0.70		100,000	$	0.70
$	0.73		791,000		6.80	$	0.73		791,000	$	0.73
$	0.85		6,000		3.01	$	0.85		6,000	$	0.85
$	0.90		6,000		4.01	$	0.90		6,000	$	0.90
$	0.95		30,000		4.53	$	0.95		30,000	$	0.95
$	1.20		207,800		2.17	$	1.20		207,800	$	1.20
$	1.30		478,000		9.45	$	1.30		–	$	1.30
$	1.42		100,000		9.70	$	1.42		–	$	1.42
$	1.50		70,000		9.94	$	1.50		70,000	$	1.50
$	0.27–1.50		2,057,800		7.00	$	0.94		1,479,800	$	0.79

The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 31, 2019 was $1,770,050 and $1,493,050, respectively.

Common Stock Award

On August 2, 2018, the Company awarded its Chief Executive Officer 300,000 shares of common stock for services performed through June 30, 2018. As of December 31, 2019, 200,000 shares have been issued. The fair market value of the 300,000 shares on the award date equal to $210,000 has been recorded as general and administrative stock-based compensation expense in the three months ended September 30, 2018.