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STOCK BASED COMPENSATION PLANS | 12 Months Ended
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Jun. 30, 2017
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, 2017 as shown in the table below:
|  |  |  |  |  | Authorized
Date Approved |  | Name of Plan |  | Type of Plan |  | Shares
June 2013 |  | 2013 Stock Incentive Plan |  | Stock |  | 500,000
June 2014 |  | 2014 Stock Option Incentive Plan |  | Stock Options |  | 750,000
June 2015 |  | 2015 Stock Incentive Plan |  | Stock & Stock Options |  | 1,250,000
|  |  |  |  |  | 2,500,000
As of June 30, 2017, the Company had reserved shares of Common Stock for future issuance for the following:
Exercise of Common Stock Warrants |  | 23,978
Conversions of Preferred Stock and cumulative Preferred Stock dividends |  | 100,667
Issuance under 2013 Stock Incentive Plan |  | 9,004
Issuance under 2014 Stock Option Incentive Plan |  | 1,447
Issuance under 2015 Stock Incentive Plan |  | 1,052,000
Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction |  | 140,000
Total shares reserved for future issuance |  | 1,327,096
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, 2017 |  | June 30, 2016 |  | June 30, 2015
Expected volatility |  | 48-50% |  | 59-66% |  | 78-79%
Expected life |  | 4 years |  | 4.5 years |  | 7 years
Expected dividends |  | 0.00% |  | 0.00% |  | 0.00%
Risk-free interest rate |  | 1.06-1.90% |  | 1.46-1.49% |  | 1.59-2.04%
Stock based compensation related to stock options for the years ended June 30, 2017, 2016 and 2015 was $264 thousand, $338 thousand, and $370 thousand respectively. Unrecognized compensation related to stock option grants as of June 30, 2017, 2016, and 2015 was $450 thousand, $167 thousand, and $297 thousand respectively. The following tables provide information about outstanding options for the fiscal years ended June 30, 2017, 2016, and 2015:
|  | For the Twelve Months Ended June 30,
|  | 2017
|  |  |  | Weighted |  |
|  |  |  | Average Grant |  | Weighted Average
|  | Shares |  | Date Fair Value |  | Exercise Price
Outstanding options, beginning of period |  | 610,141 |  | $ | 1.35 |  | $ | 2.07
Granted |  | 303,079 |  | $ | 1.80 |  | $ | 4.30
Forfeited |  | — |  | $ | — |  | $ | —
Exercised |  | — |  | $ | — |  | $ | —
Expired |  | — |  | $ | — |  | $ | —
Outstanding options, end of period |  | 913,220 |  | $ | 1.51 |  | $ | 2.82
|  | For the Twelve Months Ended June 30,
|  | 2016
|  |  |  | Weighted |  |
|  |  |  | Average Grant |  | Weighted Average
|  | Shares |  | Date Fair Value |  | Exercise Price
Outstanding options, beginning of period |  | 538,888 |  | $ | 1.33 |  | $ | 1.86
Granted |  | 199,586 |  | $ | 1.63 |  | $ | 3.21
Forfeited |  | (95,000) |  | $ | 1.80 |  | $ | 3.38
Exercised |  | — |  | $ | — |  | $ | —
Expired |  | (33,333) |  | $ | 1.27 |  | $ | 1.80
Outstanding options, end of period |  | 610,141 |  | $ | 1.35 |  | $ | 2.07
|  | For the Twelve Months Ended June 30,
|  | 2015
|  |  |  | Weighted |  |
|  |  |  | Average Grant |  | Weighted Average
|  | Shares |  | Date Fair Value |  | Exercise Price
Outstanding options, beginning of period |  | 120,000 |  | $ | 1.49 |  | $ | 2.05
Granted |  | 438,888 |  | $ | 1.30 |  | $ | 1.82
Forfeited |  | (20,000) |  | $ | 1.49 |  | $ | 2.05
Exercised |  | — |  | $ | — |  | $ | —
Expired |  | — |  | $ | — |  | $ | —
Outstanding options, end of period |  | 538,888 |  | $ | 1.33 |  | $ | 1.86
The following table provides information related to options as of June 30, 2017:
|  | Options Outstanding |  | Options Exercisable
|  |  |  | Remaining Contractual |  | Shares |  | Remaining Contractual |  | Weighted Average
Range of Exercise Prices |  | Options Outstanding |  | Life |  | Exercisable |  | Life |  | Exercise Price
$1.62 to $1.68 |  | 75,000 |  | 4.51 |  | 50,001 |  | 4.51 |  | $ | 1.65
$1.80 to $2.00 |  | 295,555 |  | 4.16 |  | 245,555 |  | 4.16 |  | $ | 1.80
$2.05 |  | 100,000 |  | 3.97 |  | 100,000 |  | 3.97 |  | $ | 2.05
$2.09 |  | 10,000 |  | 4.58 |  | 6,666 |  | 4.58 |  | $ | 2.09
$2.75 |  | 25,000 |  | 4.77 |  | 16,666 |  | 4.77 |  | $ | 2.75
$2.94 |  | 75,000 |  | 5.53 |  | 25,000 |  | 5.53 |  | $ | 2.94
$3.38 |  | 29,585 |  | 5.06 |  | 29,586 |  | 5.06 |  | $ | 3.38
$4.00 |  | 75,000 |  | 6.69 |  | — |  | — |  | $ | —
$4.05 |  | 30,000 |  | 6.61 |  | 10,000 |  | 6.61 |  | $ | 4.05
$4.40 |  | 178,000 |  | 6.78 |  | — |  | — |  | $ | —
$4.98 |  | 20,080 |  | 6.17 |  | — |  | — |  | $ | —
|  | 913,220 |  | 5.18 |  | 483,474 |  | 4.36 |  | $ | 2.08
The following table provides information about unvested options:
|  |  | For the Twelve Months Ended June 30,
|  |  | 2017 |  |  | 2016 |  |  | 2015
|  |  |  |  | Weighted |  |  |  |  | Weighted |  |  |  |  | Weighted
|  |  |  |  | Average Grant |  |  |  |  | Average Grant |  |  |  |  | Average Grant
|  |  | Shares |  | Date Fair Value |  |  | Shares |  | Date Fair Value |  |  | Shares |  | Date Fair Value
Unvested options, beginning of period |  |  | 311,248 |  | $ | 1.39 |  |  | 505,553 |  | $ | 1.32 |  |  | 120,000 |  | $ | 1.49
Granted |  |  | 303,079 |  | $ | 1.80 |  |  | 199,586 |  | $ | 1.63 |  |  | 438,888 |  | $ | 1.30
Vested |  |  | (184,581) |  | $ | 1.42 |  |  | (298,891) |  | $ | 1.31 |  |  | (33,335) |  | $ | 1.49
Forfeited |  |  | — |  | $ | — |  |  | (95,000) |  | $ | 1.80 |  |  | (20,000) |  | $ | 1.49
Unvested options, end of period |  |  | 429,746 |  | $ | 1.67 |  |  | 311,248 |  | $ | 1.39 |  |  | 505,553 |  | $ | 1.32
The following table provides information about options outstanding and exercisable options:
|  | As of June 30,
|  | 2017 |  | 2016 |  | 2015
|  | Options |  | Exercisable |  | Options |  | Exercisable |  | Options |  | Exercisable
|  | Outstanding |  | Options |  | Outstanding |  | Options |  | Outstanding |  | Options
Number |  |  | 913,220 |  |  | 483,474 |  |  | 610,141 |  |  | 298,893 |  |  | 538,888 |  |  | 33,335
Weighted average exercise price |  | $ | 2.82 |  | $ | 2.08 |  | $ | 2.07 |  | $ | 1.87 |  | $ | 1.86 |  |  | 2.05
Aggregate intrinsic value |  | $ | 2,173,464 |  | $ | 1,508,439 |  | $ | 1,341,828 |  | $ | 717,343 |  | $ | 452,666 |  |  | 21,668
Weighted average contractual term |  | $ | 5.18 |  |  | 4.36 |  |  | 5.42 |  |  | 5.17 |  |  | 6.21 |  |  | 5.97
Share price as of June 30 |  | $ | 5.20 |  | $ | 5.20 |  | $ | 4.27 |  | $ | 4.27 |  | $ | 2.70 |  | $ | 2.70
STOCK GRANTS A summary of the status of the Company’s nonvested common shares as of June 30, 2017, 2016, and 2015, and changes during the years then ended is presented below:
|  |  |  | Weighted-Average
|  |  |  | Grant-Date
|  | Shares |  | Fair Value
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
Granted |  | 135,585 |  |  | 4.25
Vested |  | (141,527) |  |  | 3.33
Nonvested at June 30, 2017 |  | 122,556 |  | $ | 3.96

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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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