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Stockholders' Equity
 6 Months Ended
Dec. 31, 2012
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

Note 5 — Stockholders’ Equity

 

Stock Options

 

On December 21, 2007, the Company established the 2007 Equity Compensation Plan (the “Plan”) as approved by our Board of Directors and stockholders. On November 15, 2012, the maximum number of shares of common stock that may be issued pursuant to awards granted under the Plan increased from 1,500,000 to 3,000,000, as approved by our Board of Directors and stockholders. The majority of awards issued under the Plan vest immediately or over three years, and have a term of ten years. There were 1,555,769 shares available for grant under the Plan as of December 31, 2012. Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and recognized over the requisite service period, which is generally the vesting period.

 

The following table summarizes vested and unvested options activity:

 

    All Options     Vested Options     Unvested Options  
          Weighted           Weighted           Weighted  
          Average           Average           Average  
          Exercise           Exercise           Exercise  
    Shares     Price     Shares     Price     Shares     Price  
Outstanding at June 30, 2012     1,471,167     $ 1.27       1,141,666     $ 1.27       329,500     $ 1.29  
Granted     53,898       1.07       35,565       1.07       18,333       1.07  
Options vesting     -       -       96,667       1.25       (96,667 )     1.25  
Exercised     (73,333 )     1.01       (73,333 )     1.01       -       -  
Forfeited/Cancelled     (80,834 )     1.82       (80,834 )     1.82       -       -  
Outstanding at December 31, 2012     1,370,898     $ 1.25       1,119,731     $ 1.24       251,166     $ 1.30  

 

 The weighted average remaining contractual life of all options outstanding as of December 31, 2012 was 6.97 years. The weighted average remaining contractual life for options vested and exercisable at December 31, 2012 was 6.55 years. Furthermore, there was no intrinsic value for all options outstanding as of December 31, 2012, or for options vested and exercisable at December 31, 2012, in each case based on the fair value of the Company’s common stock on December 31, 2012. The total fair value of options vested during the six months ended December 31, 2012 was $110,406 and is included in selling, general and administrative expenses in the accompanying statement of operations.  As of December 31, 2012, the amount of unvested compensation related to these options was $239,529 which will be recorded as an expense in future periods as the options vest.

 

On July 20, 2012, a former employee exercised options to purchase 73,333 shares of the Company’s common stock on a cashless basis.  The Company issued 17,844 shares of common stock as a result of the exercise.

 

Additional information regarding stock options outstanding and exercisable as of December 31, 2012 is as follows:

 

Option Exercise Price   Options
Outstanding		     Remaining
Contractual
Life (in years)		     Options
Exercisable		  
$1.00     352,000       6.41       352,000  
  1.02     289,000       7.58       240,833  
  1.07     53,898       9.79       35,565  
  1.30     263,000       9.18       87,667  
  1.50     385,000       5.06       385,000  
  3.00     15,000       8.04       10,000  
  3.05     10,000       8.12       6,666  
  3.65     3,000       8.22       2,000  
  Total     1,370,898               1,119,731  

 

Warrants

 

The following table summarizes warrant activity:

          Weighted  
          Average  
    Number of     Exercise  
    Warrants     Price  
Outstanding, June 30, 2012     2,576,182     $ 2.06  
Granted     -       -  
Exercised     -       -  
Expired     (200,009 )     2.00  
Outstanding, December 31, 2012     2,376,173     $ 2.06  
Exercisable, June 30, 2012     2,576,182     $ 2.06  
Exercisable, December 31, 2012     2,376,173     $ 2.06  

 

There was no intrinsic value for all warrants outstanding as of December 31, 2012, based on the fair value of the Company’s common stock on December 31, 2012.

 

Additional information regarding warrants outstanding and exercisable as of December 31, 2012 is as follows:

 

Warrant Exercise Price   Warrants
Outstanding		     Remaining
Contractual
Life (in years)		     Warrants
Exercisable		  
$1.19     150,000       8.98       150,000  
  1.25     150,000       1.85       150,000  
  1.75     333,331       1.89       333,331  
  2.00     1,081,175       0.83       1,081,175  
  2.25     266,667       1.97       266,667  
  3.00     390,000       1.12       390,000  
  3.50     2,500       3.50       2,500  
  4.00     2,500       3.50       2,500  
  Total     2,376,173               2,376,173  

 

Shares Issued for Customer List

 

On November 1, 2012, the Company purchased a customer list for 182,244 shares of common stock valued at approximately $200,000, and an earnout of up to 6.5% of revenue derived from the customer list over a two year period.  The customer list will be amortized over an estimated useful life of 2 years.