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Stockholders' Equity
 6 Months Ended
Dec. 31, 2013
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Note 5.  Stockholders’ Equity
 
Stock Options
 
In December 2007, we established the 2007 Equity Compensation Plan (the “Plan”). The Plan was approved by our board of directors and stockholders. The purpose of the Plan is to grant stock and options to purchase our common stock to our employees, directors and key consultants. 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.  Cancelled and forfeited stock options and stock awards may again become available for grant under the Plan. There were 833,841 shares available for grant under the Plan as of December 31, 2013. All current stock option grants are made under the 2007 Equity Compensation Plan.
 
The majority of awards issued under the Plan vest immediately or over three years, with a one year cliff vesting period, and have a term of ten years. Stock-based compensation cost is measured at the grant date, based on the fair value of the awards that are ultimately expected to vest, and recognized on a straight-line basis over the requisite service period, which is generally the vesting period.
 
The following table summarizes vested and unvested stock option activity:
 
 
 
All Options
 
Vested Options
 
Unvested Options
 
 
 
Shares
 
Weighted
Average
Exercise
Price
 
Shares
 
Weighted
Average
Exercise
Price
 
Shares
 
Weighted
Average
Exercise
Price
 
Outstanding at June 30, 2013
 
 
1,692,898
 
 
1.24
 
 
1,352,730
 
 
1.23
 
 
340,168
 
 
1.29
 
Granted
 
 
191,472
 
 
1.80
 
 
7,400
 
 
1.80
 
 
184,072
 
 
1.80
 
Options vesting
 
 
-
 
 
-
 
 
56,834
 
 
1.41
 
 
(56,834)
 
 
1.41
 
Exercised
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Forfeited/Cancelled
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Outstanding at December 31, 2013
 
 
1,884,370
 
$
1.30
 
 
1,416,964
 
$
1.24
 
 
467,406
 
$
1.48
 
 
The weighted average remaining contractual life of all options outstanding as of December 31, 2013 was 6.92 years.  The weighted average remaining contractual life for options vested and exercisable at December 31, 2013 was 6.17 years.  Furthermore, the aggregate intrinsic value of all options outstanding as of December 31, 2013 was $1,354,438, and the aggregate intrinsic value of options vested and exercisable at December 31, 2013 was $1,109,248, in each case based on the fair value of the Company’s common stock on December 31, 2013.  The total fair value of options vested during the six months ended December 31, 2013 was $131,678 and is included in selling, general and administrative expenses in the accompanying statement of operations.  As of December 31, 2013, the amount of unvested compensation related to these options was $407,706 which will be recorded as an expense in future periods as the options vest.
 
Additional information regarding stock options outstanding and exercisable as of December 31, 2013 is as follows:
 
Option
Exercise
Price
 
Options
Outstanding
 
Remaining
Contractual
Life (in years)
 
Options
Exercisable
 
$
1.00
 
 
347,000
 
 
5.41
 
 
347,000
 
 
1.02
 
 
287,000
 
 
6.58
 
 
287,000
 
 
1.07
 
 
53,898
 
 
8.79
 
 
42,231
 
 
1.15
 
 
278,000
 
 
9.11
 
 
150,000
 
 
1.25
 
 
32,000
 
 
9.13
 
 
-
 
 
1.30
 
 
263,000
 
 
8.18
 
 
175,333
 
 
1.50
 
 
380,000
 
 
4.06
 
 
380,000
 
 
1.80
 
 
190,050
 
 
9.73
 
 
7,400
 
 
1.85
 
 
24,000
 
 
9.39
 
 
-
 
 
1.97
 
 
1,422
 
 
9.90
 
 
-
 
 
3.00
 
 
15,000
 
 
7.04
 
 
15,000
 
 
3.05
 
 
10,000
 
 
7.12
 
 
10,000
 
 
3.65
 
 
3,000
 
 
7.22
 
 
3,000
 
Total
 
 
1,884,370
 
 
 
 
 
1,416,964
 
 
Warrants
 
The following table summarizes warrant activity:
 
 
 
Number of
Warrants
 
Weighted
Average
Exercise
Price
 
Outstanding, June 30, 2013
 
 
2,376,173
 
 
2.06
 
Granted
 
 
-
 
 
-
 
Exercised
 
 
(419,000)
 
 
2.00
 
Expired
 
 
(662,175)
 
 
2.00
 
Outstanding, December 31, 2013
 
 
1,294,998
 
$
2.11
 
Exercisable, June 30, 2013
 
 
2,376,173
 
$
2.06
 
Exercisable, December 31, 2013
 
 
1,294,998
 
$
2.11
 
 
The intrinsic value for all warrants outstanding as of December 31, 2013 was $317,333, based on the fair value of the Company’s common stock on December 31, 2013.
 
In November 2013, warrant holders exercised warrants to purchase 419,000 shares of the Company’s common stock for $838,000.
 
Additional information regarding warrants outstanding and exercisable as of December 31, 2013 is as follows:
 
Warrant
Exercise Price
 
Warrants
Outstanding
 
Remaining
Contractual
Life (in years)
 
Warrants
Exercisable
 
$
1.19
 
 
150,000
 
 
7.98
 
 
150,000
 
 
1.25
 
 
150,000
 
 
1.85
 
 
150,000
 
 
1.75
 
 
333,331
 
 
0.89
 
 
333,331
 
 
2.25
 
 
266,667
 
 
0.97
 
 
266,667
 
 
3.00
 
 
390,000
 
 
0.12
 
 
390,000
 
 
3.50
 
 
2,500
 
 
2.50
 
 
2,500
 
 
4.00
 
 
2,500
 
 
2.50
 
 
2,500
 
Total
 
 
1,294,998
 
 
 
 
 
1,294,998
 
 
Restricted Common Stock
 
On September 6, 2013, the Company issued 150,833 shares of restricted common stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $271,499 based on the market price of our common stock of $1.80 per share on the date of grant, which will be amortized over the three year vesting period.
 
On November 22, 2013, the Company issued 11,683 shares of restricted common stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $23,016 based on the market price of our common stock of $1.97 per share on the date of grant, which will be amortized over the three year vesting period.
 
The total fair value of restricted common stock vested during the six months ended December 31, 2013 was $47,168 and is included in selling, general and administrative expenses in the accompanying statement of operations. As of December 31, 2013, the amount of unvested compensation related to this issuance of restricted common stock was $247,347 which will be recorded as an expense in future periods as the stock vests. When calculating net income (loss) per share, these shares are included in weighted average common shares outstanding from the time they vest.
 
The following table summarizes restricted common stock activity:
 
 
 
Number of
Shares
 
Weighted
Average
Grant Date
Fair Value
 
Non-vested, June 30, 2013
 
 
33,939
 
 
1.85
 
Granted
 
 
162,516
 
 
1.81
 
Vested
 
 
-
 
 
-
 
Forfeited
 
 
-
 
 
-
 
Non-vested, December 31, 2013
 
 
196,455
 
$
1.82
 
 
Issuance of Common Stock
 
On December 6, 2013, the Company issued 2,748 shares of common stock valued at $5,222 to a consultant for services rendered.