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STOCK BASED COMPENSATION PLANS | 12 Months Ended
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Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK BASED COMPENSATION PLANS | 14. STOCK BASED COMPENSATION PLANS The Company has three active stock based compensation plans at June 30, 2016 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, 2016, the Company had reserved shares of Common Stock for future issuance for the following:
Exercise of Common Stock Warrants |  |  | 2,445,653 |
Conversions of Preferred Stock and cumulative Preferred Stock dividends |  |  | 99,999 |
Issuance under 2013 Stock Incentive Plan |  |  | 162,330 |
Issuance under 2014 Stock Option Incentive Plan |  |  | 737,215 |
Issuance under 2015 Stock Incentive Plan |  |  | 1,250,000 |
Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction |  |  | 140,000 |
Total shares reserved for future issuance |  |  | 4,835,197 |
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.
|  | Year Ended |  |  | Year ended |  |  | Year ended |
|  | June 30, 2016 |  |  | June 30, 2015 |  |  | June 30, 2014 |
Expected volatility |  |  | 59-66% |  |  |  | 78-79% |  |  |  | 79% |
Expected life |  |  | 4.5 years |  |  |  | 7 years |  |  |  | 7 years |
Expected dividends |  |  | 0.00% |  |  |  | 0.00% |  |  |  | 0.00% |
Risk-free interest rate |  |  | 1.46-1.49% |  |  |  | 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, 2014. Stock based compensation related to stock options for the years ended June 30, 2016 and June 30, 2015 was $338 and $370 thousand respectively. Unrecognized compensation related to stock option grants as of June 30, 2016 and June 30, 2015 was $167 thousand and $297 thousand respectively. The following table provides information about outstanding options:
|  | For the Twelve Months Ended June 30, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | Shares |  |  | Weighted Average Grant Date Fair Value |  |  | Shares |  |  | Weighted Average Grant Date Fair Value |  |  | Shares |  |  | Weighted Average Grant Date Fair Value |
Outstanding options, beginning of period |  |  | 538,888 |  |  | $ | 1.32 |  |  |  | 120,000 |  |  | $ | 1.49 |  |  |  | - |  |  |  | - |
Granted |  |  | 199,586 |  |  | $ | 1.63 |  |  |  | 438,888 |  |  | $ | 1.30 |  |  |  | 120,000 |  |  | $ | 1.49 |
Forfeited |  |  | (95,000 | ) |  | $ | 1.80 |  |  |  | (20,000 | ) |  | $ | 1.49 |  |  |  | - |  |  |  | - |
Excercised |  |  | (33,333 | ) |  | $ | 1.27 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outstanding options, end of period |  |  | 610,141 |  |  | $ | 1.35 |  |  |  | 538,888 |  |  | $ | 1.33 |  |  |  | 120,000 |  |  | $ | 1.49 |
The following table provides information related to options as of June 30, 2016:
|  | 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 |  | 5.51 |  | 25,002 |  | 5.51 |  | 1.65 |
$1.80 |  | 295,555 |  | 5.16 |  | 195,555 |  | 5.16 |  | 1.8 |
$2.05 |  | 100,000 |  | 4.97 |  | 66,670 |  | 4.97 |  | 2.05 |
$2.09 |  | 10,000 |  | 5.58 |  | 3,333 |  | 5.58 |  | 2.09 |
$2.75 |  | 25,000 |  | 5.77 |  | 8,333 |  | 5.77 |  | 2.75 |
$2.94 |  | 75,000 |  | 6.53 |  | - |  | - |  | - |
$3.38 |  | 29,586 |  | 6.06 |  | - |  | - |  | - |
|  | 610,141 |  | 5.42 |  | 298,893 |  | 5.17 |  | 1.87 |
The following table provides information about unvested options:
|  | For the Twelve Months Ended June 30, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | 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 |  |  | 505,553 |  |  | $ | 1.32 |  |  |  | 120,000 |  |  | $ | 1.49 |  |  |  | - |  |  |  | - |
Granted |  |  | 199,586 |  |  | $ | 1.63 |  |  |  | 438,888 |  |  | $ | 1.30 |  |  |  | 120,000 |  |  | $ | 1.49 |
Vested |  |  | (298,891 | ) |  | $ | 1.31 |  |  |  | (33,335 | ) |  | $ | 1.49 |  |  |  | - |  |  |  | - |
Forfeited |  |  | (95,000 | ) |  | $ | 1.80 |  |  |  | (20,000 | ) |  | $ | 1.49 |  |  |  | - |  |  |  | - |
Unvested options, end of period |  |  | 311,248 |  |  | $ | 1.39 |  |  |  | 505,553 |  |  | $ | 1.32 |  |  |  | 120,000 |  |  | $ | 1.49 |
The following table provides information about options outstanding and exercisable options:
|  | As of June 30, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | Options Outstanding |  |  | Exercisable Options |  |  | Options Outstanding |  |  | Exercisable Options |  |  | Options Outstanding |  |  | Exercisable Options |
Number |  |  | 610,141 |  |  |  | 298,893 |  |  |  | 538,888 |  |  |  | 33,335 |  |  |  | 120,000 |  |  |  | - |
Weighted average exercise price |  | $ | 2.07 |  |  | $ | 1.87 |  |  | $ | 1.86 |  |  | $ | 2.05 |  |  | $ | 2.05 |  |  |  | - |
Aggregate intrinsic value |  | $ | 1,341,828 |  |  | $ | 717,343 |  |  | $ | 451,177 |  |  | $ | 21,668 |  |  | $ | 7,200 |  |  |  | - |
Weighted average contractual term |  | $ | 5.42 |  |  |  | 5.17 |  |  |  | 6.21 |  |  |  | 5.97 |  |  |  | 6.97 |  |  |  | - |
Share price as of June 30 |  | $ | 4.27 |  |  | $ | 4.27 |  |  | $ | 2.70 |  |  | $ | 2.70 |  |  | $ | 2.11 |  |  | $ | 2.11 |
STOCK GRANTS A summary of the status of the Company’s nonvested common shares as of June 30, 2016, 2015, and 2014, and changes during the years then ended is presented below:
|  |  |  |  | Weighted-Average |
|  |  |  |  | Grant-Date |
|  | Shares |  |  | Fair Value |
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 |
Granted |  |  | 131,558 |  |  |  | 3.04 |
Vested |  |  | (21,664 | ) |  |  | 2.70 |
Nonvested at June 30, 2016 |  |  | 128,498 |  |  | $ | 2.97 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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