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STOCK BASED COMPENSATION PLANS

12 Months Ended

Jun. 30, 2015

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

STOCK BASED COMPENSATION PLANS

12. STOCK BASED COMPENSATION PLANS

The Company has three active stock based compensation plans at June 30, 2015 as shown in the table below:

Date Approved		Name of Plan		Type of Plan		Authorized Shares
June 2013		2013 Stock Incentive Plan		Stock			500,000
June 2014		2014 Stock Option Incentive Plan		Stock Options			750,000
June 2015		2015 Equity Incentive Plan		Stock + Stock Options			1,250,000
							2,500,000

As of June 30, 2015, the Company had reserved shares of Common Stock for future issuance for the following:

Exercise of Common Stock Warrants			4,309,000
Conversions of Preferred Stock and cumulative Preferred Stock dividends			98,861
Issuance under 2013 Stock Incentive Plan			321,111
Issuance under 2014 Stock Option Incentive Plan			750,000
Issuance under 2015 Equity Incentive Plan			1,250,000
Issuance to former Chief Executive Officer upon a prescribed transaction			140,000
Total shares reserved for future issuance			6,868,972

STOCK OPTIONS

The Company estimates the grant date fair value of the stock options it grants using a Black-Scholes valuation model. The Company’s assumption for expected volatility is based on its historical volatility data related to market trading of its own common stock. The Company bases its assumptions for expected life of the new stock option grants on the life of the option granted, and if relevant, its analysis of the historical exercise patterns of its stock options. The dividend yield assumption is based on dividends expected to be paid over the expected life of the stock option. The risk-free interest rate assumption is determined by using the U.S. Treasury rates of the same period as the expected option term of each stock option. There were no options granted during the fiscal year ended June 30, 2013.

		Year ended			Year ended
		June 30, 2015			June 30, 2014
Expected volatility		78-79%			79%
Expected life		7 years			7 years
Expected dividends		0.00%			0.00%
Risk-free interest rate		1.59-2.04%			2.22%

The 2014 Stock Option Incentive Plan was approved in June 2014 therefore there was no stock based compensation expense related to stock options for the years ended June 30, 2013 and June 30, 2014. Stock based compensation related to stock options for the year ended June 30, 2015 was $370,435. Unrecognized compensation related to stock option grants as of June 30, 2015 was $297,202.

The following table provides information about options outstanding:

		For the Twelve Months Ended June 30,
		2015												2014												2013
		Shares				Weighted Average Exercise Price				Weighted Average Grant Date Fair Value				Shares				Weighted Average Exercise Price				Weighted Average Grant Date Fair Value				Shares				Weighted Average Exercise Price				Weighted Average Grant Date Fair Value
Options outstanding, beginning of period			120,000			$	2.05			$	1.49				-			$	-			$	-				45,333			$	7.53			$	5.34
Granted			438,888			$	1.82			$	1.30				120,000			$	2.05			$	1.49				-			$	-			$	-
Forfeited			(20,000	)		$	2.05			$	1.49				-			$	-			$	-				-			$	-			$	-
Expired			-			$	-			$	-				-			$	-			$	-				(45,333	)		$	7.53			$	5.34
Exercised			-			$	-			$	-				-			$	-			$	-				-			$	-			$	-
Options outstanding, end of period			538,888			$	1.86			$	1.33				120,000			$	2.05			$	1.49				-			$	-			$	-

The following table provides information related to options as of June 30, 2015:

		Options Outstanding								Options Exercisable
Range of Exercise Prices		Options Outstanding				Remaining Contractual Life				Shares Exercisable				Remaining Contractual Life				Weighted Average Exercise Price
$1.62 to $1.68			75,000				6.51				-				N/A				N/A
$1.78			328,888				6.16				-				N/A				N/A
$2.05			100,000				5.97				33,335				5.97			$	2.05
$2.09			10,000				6.58				-				N/A				N/A
$2.75			25,000				6.77				-				N/A				N/A
			538,888				6.21				33,335				5.97			$	2.05

The following table provides information about unvested options:

		For the Twelve Months Ended June 30,
		2015								2014								2013
		Shares				Weighted Average Grant Date Fair Value				Shares				Weighted Average Grant Date Fair Value				Shares				Weighted Average Grant Date Fair Value
Unvested options, beginning of period			120,000			$	1.49				-				-				-				-
Granted			438,888			$	1.30				120,000			$	1.49				-				-
Vested			(33,335	)		$	1.49				-				-				-				-
Forfeited			(20,000	)		$	1.49				-				-				-				-
Unvested options, end of period			505,553			$	1.32				120,000			$	1.49				-			$	-

The following table provides information about options outstanding and exercisable options:

		As of June 30,
		2015								2014								2013
		Options Outstanding				Exercisable Options				Options Outstanding				Exercisable Options				Options Outstanding				Exercisable Options
Number			538,888				33,335				120,000				-				-				-
Weighted average exercise price		$	1.86			$	2.05			$	2.05			$	-			$	-			$	-
Aggregate intrinsic value		$	451,177			$	21,668			$	7,200			$	-			$	-			$	-
Weighted average contractual term			6.21				5.97				6.97				-				-				-
Share price as of June 30		$	2.70			$	2.70			$	2.11			$	2.11			$	1.74			$	1.74

STOCK GRANTS

A summary of the status of the Company’s nonvested common shares as of June 30, 2015, 2014, and 2013, and changes during the years then ended is presented below:

						Weighted-Average
						Grant-Date
		Shares				Fair Value
Nonvested Shares
Nonvested at June 30, 2012			172,003			$	1.82
Granted			156,429				1.45
Vested			(204,587	)			1.72
Forfeited, Employee shares not earned			(26,699	)			1.52
Nonvested at June 30, 2013			97,146			$	1.52
Granted			10,000				2.17
Vested			(55,001	)			1.62
Forfeited, Director changes			(3,334	)			0.94
Forfeited, Employee shares not earned			(5,000	)			1.52
Nonvested at June 30, 2014			43,811			$	1.59
Granted			155,927				2.00
Vested			(181,134	)			1.89
Nonvested at June 30, 2015			18,604			$	1.88